Caution is advised when buying property in Turkey

Caution is advised when buying property in Turkey
Caution is advised when buying property in Turkey

Caution is advised when buying property in Turkey

Despite the fact that there is significant growth potential in the Turkish property market a number of property experts are advising that those looking to invest in Turkey for the first time take professional advice. At this moment in time average growth in the Istanbul property market is averaging around 12% to 15% per annum but investors need to do their homework before investing.

Turkey has been at the centre of political and social unrest over the last few months and while this did impact investor sentiment in the short term, property prices across Turkey, in particular in Istanbul, are now starting to pick up again. When you bear in mind that rental yields of around 8% are achievable, together with long-term property price growth, there is much to be excited about when looking towards Turkey.

Gulf investors lead the way

At this moment in time the Chinese investment arena is grabbing the majority of property market headlines around the world but it is worth noting that the investors from Gulf still account for a large percentage of overseas property investment. It is estimated that around $3 billion of property investment in Turkey over the last 12 months has originated from the Gulf and this figure is expected to increase to around $10 billion within the next five years. When you also take into account the fact that Chinese investors are also looking at overseas property markets, there is potential for a significant squeeze in property values across Turkey and in particular Istanbul.

Quote from : “I am planning to buy a flat in Istanbul and I would like to get some advices on the 2 options I have and their +/-“

In many ways the ongoing European economic crisis has led many people to look towards markets which were perhaps less fashionable in years gone by. The political unrest in Turkey in particular has been seen by many investors as an opportunity for long-term property market investment and with enormous funds available across Chinese and Gulf investors in particular, this focus upon Turkey will squeeze the higher end of the market.

Research is vital

In years gone by many people have made money from various regional property markets by following the trend and perhaps they have not done as much research as they should have and could have. While there is still the potential to make significant returns by “following the trend” there is also significant potential for naive investors to be “ripped off” to quote a Turkish property expert.

There is competition in the international property market, advisers and professionals are readily available across the world, but it is those looking to cut corners and cut costs that put themselves most at risk of fraud and exposure to con artists. In some ways the growing influence of the Internet has given “less experienced” investors the confidence to look elsewhere and perhaps a little too much confidence in their own ability to micromanage property transactions from their homeland.


The vast majority of property experts see significant potential for property price growth across Turkey with particular emphasis upon Istanbul. There is enormous ongoing investment from the Gulf as well as Chinese investors and this is likely to continue for the foreseeable future. However, even experts in the Turkey property market have issued a note of caution with regards to “less experienced property investors” looking to make a quick buck with a Turkish property investment.

As with any investment, be it property, shares, etc you need to do your homework, you need to be aware of the market you are investing in and above all you need to take professional financial advice from someone on the ground. Cutting corners might be attractive in the short term but it could end up being extremely expensive in the longer term!

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Nick Wallwork

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1 Comment

  • Mark
    27th October 2013, 7:34 pm

    I bought property in Turkey, I had no problem, I went to major agency and they handled all the transactions
    what this saying is true for every country, they have major realestate egencies, they do great work

  • Donna Schwarz-Nielsen
    4th November 2013, 3:24 pm

    My husband and I own two properties in Turkey.
    Our first apartment was bought with no problems. As Mark said, we went through an agent ‘Century 21’ and they held our hand all the way with no issues.
    For our second apartment however we went through a different agent who was selling for a large reputable builder, well known in the area ‘Manzara’.
    They, ‘Manzara’ as it turns our were in financial difficulties and have passed on their difficulties to their buyers. As such, many of their customers including us, are now having to fork out extra money on top of the original sum to get the final ‘living’ tapu (deed) or else we will end up loosing our properties. All because they didn’t pay their builders health benefits (SGK) and various other fees. That now has to come out of our pocket. No one could have known this was going to happen so it’s a bit hard to warn people up front. The case is currently being dealt with by our lawyer. :/

  • Rasha@Anonymous
    8th June 2015, 8:48 am

    Hi Mark,

    Would you please tell me the agency name as I am looking as well for something.


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