Property in Mahmutlar, Alanya

Why to invest in Turkey?

5 reasons why to invest in Turkey

Turkey today shows high and stable economic growth, thereby offering foreign citizens a large number of directions for profitable investments. One of the fastest growing sectors is the real estate market. The rise of prices for the property in the country is confident. This trend is especially noticeable in the resort regions located on the Mediterranean coast. Combined with low tax rates for the purchase and subsequent ownership, investing in Turkish real estate is a safe and win-win option that will not only save, but also increase your investment. This area is attractive for investment for several reasons:

  1. Every year, interesting proposals from leading developers appear on the market, which makes it possible to earn money by investing in profitable projects at the excavation stage. Buyers are purchasing homes at this stage with the aim of reselling them shortly before completion of construction or after the house is already built. Thus, a potential investor can receive income immediately, since the cost of square meters in modern residential complexes rises to 40% after the completion of construction! It is worth considering that objects under construction can be bought on favorable terms – in an interest-free installment plan from the developer or on a loan at a low rate, which means that the benefit of such investment becomes more than obvious.
  2. Along with the ever-increasing demand, the real estate sector is actively supported by the state, in particular by the program for the demolition of old houses and objects in disrepair, which means that apartment owners in old buildings will receive new apartments in return.
  3. The middle-income population is attracted by the relatively low mortgage rates. A mortgage loan can be issued to any foreign citizen who has the right to buy property in Turkey. The loan is issued for up to 10 years. Despite the current situation with the pandemic in the world, the level of foreign investment in real estate remains at a high level.
  4. Renting the property that in high season can bring the owner of the apartment is good enough passive income. It is also worth noting the climatic side. In particular, Alanya has more than 300 sunny days a year, which makes the season long and the region attractive for tourists. Therefore, the demand for rent is always high.
  5. Many foreign citizens also invest in buying commercial property, and in Turkey this is becoming one of the best ways to make good profits. This applies to both the purchase of square meters for running your own business, and their leasing for offices, shops, restaurants, cafes.

In 2018, Turkey launched its own program of citizenship for investments. When buying real estate, a foreign investor has the right to obtain the Turkish passport.

“Sonmez Real Estate & Construction” is ready to offer you the most reliable and promising options for a profitable investment in Turkish real estate.

Turkey is one of the most promising real estate markets in Europe. With its strategic location at the crossroads of Europe, the Middle East and Central Asia, and with an estimated population of 81 million people, Turkey offers excellent opportunities for developers and investors, combining a vast construction sector with increased commercial and industrial production.

Some information and key indicators related to the Turkish real estate sector:

  • The real estate sector has accounted for about 8.4 per cent of GDP over the past decade. In terms of investment, the inflow of foreign direct investment amounted to $ 10.8 billion. Of which, $ 4.6 billion has been allocated. Of total FDI in real estate and construction in 2017;
  • Urban renewal and megaprojects dominate the agenda for the foreseeable future, especially in Istanbul. Among the projects to be implemented in the city are: Marmaray, Istanbul canal, Yavuz Sultan Selim Bridge, Eurasian tunnel, three-storey Istanbul tunnel and 3rd Istanbul airport;
  • The urban renewal and development initiative will include 7.5 million housing units. The initiative has a budget of $ 400 billion. The private sector makes a significant contribution;
  • According to the Knight Franck house price index, Turkey ranked sixth in the 56 index in Q3 2017 in terms of annual price growth index. Turkey’s annual growth rate increased by 11.1 per cent, making it one of the world’s top property markets, ahead of Australia, Latvia and India;
  • The total number of homes sold in the Turkish real estate market reached 1.4 million in 2017. In addition, real estate sales to foreigners began to increase after the abolition of the reciprocity law in 2012, in 2017, 22,234 houses were sold to foreigners in the country, which is 22.2% more per year. In terms of home sales to foreigners in 2017, Istanbul was the most successful with 8,182 sales, followed by Antalya with 4,707 sales, Bursa with 1,474 sales and Yalova with 1,079 sales;
  • At the end of 2017, existing class a office space in Istanbul exceeded 5.3 million m2 of 249 office buildings. The annual increase in gross rental space in the office market averaged about 12% between 2010 and 2017. More than 1.2 million square meters of office supplies are under construction, and it is expected that by the end of 2020, class a offices will amount to about 7.1 million m2 of total leased space;
  • In Turkey there are 401 shopping centers with a total leased area of 12.2 million m2 on 114 shopping centers in Istanbul with a total leased area of 4.2 million m2, which is 34% of the total leased area in Turkey;
  • According to the JLL attractiveness Index 2016, Istanbul is the 6th most attractive market in Europe after London, Paris, Moscow, Milan and Madrid;
  • Despite growth in recent years, Turkey remains below the average total rental area per person, compared to the European average. This heralds further growth of retail trade in Turkey;
  • According to the Department of the Ministry of culture and tourism, at the end of 2016 there were 3,641 classified hotels in Turkey with a total of 426,981 rooms. 5-star hotels make up 42.7% of hotels. 4-star hotels with 24.8% market share and 3-star categories with 12.6% market share.

In 2018, the Turkish government introduced the possibility of obtaining Turkish citizenship in a short period. Anyone who has bought property worth $ 250,000 or put in deposit $ 500,000 in Turkish banks can apply. In this case, the applicant is not entitled to either sell this property or withdraw money from the account for 3 years. Also, those who have made investments in the Turkish economy in the amount of at least $ 500,000 and those who have created 50 jobs for Turkish citizens can apply for citizenship in an accelerated mode.

Also, entrepreneurs and investors can apply for the Turquoise Card, which guarantees almost the same rights as ordinary Turkish citizenship.

Required Documents for Application for Turkish Citizenship by Investment

Preparation of documents for obtaining citizenship requires special knowledge and experience. Since each applicant in his particular case may have different conditions, we recommend that you contact our company for legal support. We provide you with full support in the preparation of documents.

List of required documents:

  • Application form.
  • A valid passport.
  • 4 passport-sized photos for each member of your family.
  • Birth certificate.
  • Residence permit or valid tourist visa in your passport.
  • If necessary, a document confirming marital status and documents for children (marriage and birth certificates of children).
  • If necessary, a document confirming the identity and address of the relative’s residence in Turkey
  • Document confirming the payment of the tax fee.
  • Report on the assessed value.
  • A receipt from the bank confirming the payment of a minimum of $ 250,000.

 

Tourism is one of the most important sectors in the Turkish economy and has been playing an increasing role in recent decades. It employs about two million people (510 thousand directly, another 1.5 million in related industries). The country is the sixth most popular tourist destination in the world and continues to offer ample investment opportunities in both established and emerging subsectors of the tourism industry.

Thanks to its favorable geographic location, existing potential, mega-projects and ambitious targets set for 2023, the tourism sector continues to grow at a rate that exceeds its capacity. Although investment has increased over the past few years, there are still countless opportunities for new businesses. The regions of Eastern and Southeastern Anatolia have untapped tourism potential. The same applies to the increasingly popular boutique hotel concept, which blends perfectly with the characteristic nature, history and culture of these regions.

Here are some key facts and figures about Turkey’s tourism sector:

The growth of the Turkish tourism industry in recent years has been higher than the global average, and the industry’s direct contribution to the current account deficit in 2017 was 36%.

At the end of 2017, 12,856 hotels were registered. 9,186 of these institutions were licensed by the respective municipalities, and the remaining 3,670 were licensed to manage tourism. The total aggregate capacity of these facilities exceeds 1,482,492 units.

Currently, 281 promising projects are under way, which will add 74,130 places needed to overcome the shortage facing Turkey.

With regard to religious tourism, Turkey is one of the few countries in the world where the shrines of the main religions are located. A total of 316 relics, 167 relate to Islam, 129 Christianity and 20 Judaism.

Antalya is the most popular city in Turkey in terms of the number of foreign visitors arriving. In 2017, Antalya was visited by 25% of foreign tourists. There are more than 500 4-star and 5-star hotels in the center and more nearby cities such as Kemer, Belek and Kas.

Since 2001, the number of hotel chains and hotel groups in Turkey has doubled to 165. The number of hotels in these 165 chains in Turkey reaches 824. In addition, 82% of these hotel chains and groups are owned by Turks, 15% are foreigners and 3% – to national and foreign partners.

Turkey has 7,200 km of coastline and ranks 2nd out of 38 countries with 454 blue flag beaches; it is ahead of Spain with 579 beaches of this type. Turkey also has 22 Blue Flag marinas.

In terms of geothermal tourism potential, Turkey is among the first seven countries in the world and ranks 1st in Europe with 1,500 thermal springs. The total capacity of the various resorts has reached 55,140 people.

Belek region is the most important destination for golf in Turkey and is among the most popular tourist destinations in the world with 15 golf courses, with 50 000 beds, and the flow of two million tourists. In addition, Belek received the Best Golf Destination in Europe award from the International Association of Golf Tour Operators (IAGTO) in 2008.

By 2023, the tourism sector has set annual targets of 50 million tourists and revenues are estimated at US $ 50 billion.

The Turkish government offers incentives and policies for low-cost utilities and tax breaks. It is also working to remove bureaucratic barriers that could undermine growth in the tourism sector.

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