Buying Property in Türkiye as an American: 2024 Guide

Türkiye is a transcontinental country, strategically located at the crossroads of Europe and Asia. It is not a member of the European Union, but it holds a crucial position in regional geopolitics and trade, being a key player in both the Middle Eastern and European economic landscapes.

It ranks as the 37th largest country in the world and is known for its diverse geography, which includes:

• the mainland Anatolian Peninsula;
• the Thrace region in southeastern Europe;
• numerous islands in the Aegean and Mediterranean Seas.

Türkiye is divided into 81 provinces and is further organized into 7 geographical regions, each offering distinct cultural and environmental characteristics.

With a population exceeding 85 million people as of 2024, Türkiye’s blend of modernity and tradition, along with its unique position as a bridge between two continents, makes it a compelling destination for investors and expatriates alike.

Population distribution across Türkiye's regions

Why invest in Türkiye?

The appeal of Türkiye lies not only in its dynamic economy and growing infrastructure but also in its significant investment potential.

The country boasts over 7,200 kilometers of coastline (4,474 miles) and enjoys an average of 2,600 hours of sunlight annually, providing a Mediterranean climate across much of its territory. The coastal areas, particularly along the Aegean and Mediterranean seas, are highly sought after for their scenic beauty and favorable living conditions.

Türkiye ranks as the sixth most visited country globally, following France, Spain, the United States, China and Italy. In 2023, Türkiye welcomed approximately 56.7 million international tourists, marking a significant recovery post-pandemic. This influx of tourists also drove tourism revenue to a record high of $54.3 billion, reflecting a 17% increase from the previous year. This strong performance underscores Türkiye's growing appeal as a global tourist destination (source: AGBI).

Tourism plays a vital role in the Turkish economy, contributing around 12% to the GDP and heavily influencing the construction and real estate sectors.

The real estate market in Türkiye has seen a significant increase in property prices across the board. For instance, in key cities like Istanbul, the average property prices have risen by approximately 15% compared to 2023. This trend is largely attributed to high demand, especially in major urban areas and coastal cities like Antalya and Izmir.

There is a noticeable surge in urban development projects, particularly in major cities such as Istanbul, Ankara, and Izmir. These projects often include modern residential complexes with amenities like shopping malls and improved transportation infrastructure, catering to the growing demand for well-equipped living spaces.

Coastal areas such as Bodrum, Antalya, and Fethiye continue to attract both local and international buyers looking for vacation homes or investment properties. This demand is fueled by Türkiye's appealing climate, rich cultural heritage, and strategic location.

There's a growing demand for energy-efficient and sustainable properties, driven by both environmental concerns and potential savings on utility costs. Properties that meet these criteria are becoming increasingly attractive to buyers and renters alike.

Average cost of buying property in Türkiye

As of 2024, the property market in Türkiye shows a diverse range of prices across its most coveted areas and cities, reflecting the varied appeal of each location to both domestic and international buyers.

While these figures provide a snapshot of the current market, property prices in Türkiye can vary significantly based on the exact location, property type, and market conditions.

You can easily track the latest trends and price evolutions on our dedicated page:

Türkiye's rich cultural heritage offers a wide range of regions and areas, each with its unique appeal and lifestyle.

Popular regions for investment and living

• Istanbul: As Türkiye's largest city and cultural hub, Istanbul offers a blend of modern urban living and historic charm. Properties range from historic apartments in the city center to luxury condos with views of the Bosphorus.
• Antalya: Known for its stunning Mediterranean coastline, Antalya is a popular destination for both tourists and expats. The region offers a variety of property types, from beachfront apartments to secluded villas in the hills.
• Bodrum: Famous for its vibrant nightlife, beautiful beaches, and ancient ruins, Bodrum is a favorite among international buyers. Properties here include everything from traditional stone houses to modern seafront villas.
• Izmir: As Türkiye's third-largest city, Izmir provides a cosmopolitan lifestyle with a more relaxed pace compared to Istanbul. Property options range from city-center apartments to seaside homes along the Aegean coast.
• Fethiye: Renowned for its natural beauty, including the famous Ölüdeniz beach and the surrounding mountains, Fethiye is ideal for those looking to live close to nature. The area offers a mix of townhouses, villas, and apartments.
• Ankara: Türkiye's capital and second-largest city, Ankara, offers a mix of modern urban living and historical sites. Housing options include centrally located apartments and more spacious family homes in the suburbs.

Yes, Americans can purchase property in Türkiye with relative ease.

The Turkish property market is open to foreign investors, with no significant restrictions on property ownership for non-Turkish citizens. However, there are some exceptions for certain nationalities, and there may be restrictions on purchasing property in certain strategic or military zones.

The process involves several steps, including obtaining a Foreigner Identification Number (Yabancı Kimlik Numarası or YKN), opening a Turkish bank account, and navigating the Turkish legal system. It's highly recommended to work with a reputable real estate agent and a lawyer who specializes in Turkish property law to ensure a smooth and secure transaction.

The Turkish Citizenship by Investment Program

The Turkish Citizenship by Investment program allows foreign investors to acquire Turkish citizenship by making a qualifying investment, which includes purchasing real estate worth at least $400,000.

The program offers several benefits:

• Citizenship: It grants the investor, their spouse, and dependent children Turkish citizenship, which includes the right to live, work, and study in Türkiye.
• Travel: Turkish citizens enjoy visa-free or visa-on-arrival access to over 110 countries.
• Dual Citizenship: Türkiye allows dual citizenship, so investors can maintain their original citizenship.

To qualify, the real estate must be held for at least three years. More details can be found on the official Turkish government's website.

1. Obtain a Foreigner Identification Number (YKN - Yabancı Kimlik Numarası)

The Foreigner Identification Number (YKN) is a crucial identification number for foreigners in Türkiye. It is required for any significant financial transactions, including buying property, setting up utility services, and filing taxes.

You can apply for a YKN at the local Directorate General of Migration Management (DGMM) office in Türkiye. The application typically requires:

• a valid passport;
• a completed application form;
• a reason for requesting the YKN (such as property purchase).

The process usually takes a few days to a couple of weeks.

2. Open a Turkish bank account

A local bank account is necessary for managing payments related to the property purchase, including the deposit, purchase price, taxes, and ongoing utility payments.

Most banks will require:

• your YKN;
• passport;
• proof of employment or income;
• possibly a proof of address.

3. Start searching for properties

Explore online listings on Properstar to find properties for sale in your area of interest. You can leverage our advanced filters and even draw your preferred area on the map.

Consider hiring a real estate agent to gain better insights into the market and assistance in finding properties that meet your criteria and budget.

4. Find the right real estate agent

The right real estate agent can provide insights into the local market, assist in finding properties that meet your criteria, and navigate the negotiation process.

Here's how to ensure you pick the best professional for your needs:

• Local expertise: Look for agents with a deep understanding of the area you're interested in. They should be knowledgeable about local property trends, prices, and the unique aspects of the community.
• Language skills: If you're not fluent in Turkish, finding an agent who can communicate effectively in your language is essential. They’ll act as your liaison with sellers, lawyers, and other parties involved in the process.
• Experience and credentials: Check the agent's experience and qualifications. They should have a solid track record of assisting foreign buyers and be registered with a recognized real estate association in Türkiye.

You can utilize Properstar's agent search feature to find reputable local real estate agents. Our platform offers access to a wide network of professionals vetted for their expertise and reliability, making finding someone who meets your specific needs easier.

5. Conduct property viewings

Visit potential properties to assess their condition, location, and suitability.

6. Legal checks and due diligence

The Land Registry (Tapu ve Kadastro Genel Müdürlüğü) is crucial to verify the property's legal status, ensuring it's free of debts, encumbrances, or disputes and that the seller holds the legal right to sell. This can be done by requesting a Tapu Senedi from the Land Registry.

Ensure the property complies with local zoning and urban planning laws. This is particularly important for new builds or rural properties, where there might be restrictions.

Although not a legal requirement, it's highly recommended to conduct a property survey to check the physical condition of the property. This can uncover potential issues with the building's structure, utilities, or land.

7. Make an offer

With the help of your real estate agent, make an offer on the property. If accepted, you'll proceed to the contract stage.

8. Sign the preliminary contract (Ön Protokol)

This preliminary agreement between buyer and seller (ön protokol) secures the purchase and typically involves a deposit from the buyer (usually 5-10% of the purchase price). It specifies the sale's terms and conditions and commits both parties to the transaction.

If the buyer pulls out, they may lose the deposit. If the seller pulls out, they must return double the deposit amount.

9. Finalize mortgage arrangements (if applicable)

Finalize the terms with your bank if you're financing the purchase through a mortgage.

10. Sign the deed of sale (Satış Sözleşmesi)

The final step is signing the deed of sale (satış sözleşmesi) before a notary, transferring ownership. The buyer must pay the remaining purchase price and all associated taxes and fees at this time.

Both parties must present their identification, the tax identification number (T.C. Kimlik Numarası), proof of deposit payment, and any mortgage details, if applicable.

11. Register the property

After the deed is signed, the new owner must register the property at the local Land Registry (Tapu ve Kadastro Genel Müdürlüğü). This step is essential for legal protection.

12. Pay associated taxes and fees

Buyers are responsible for paying title deed transfer tax (Tapu Harcı) and VAT (KDV) for new properties, plus notary fees and registry fees. Depending on the region, the total cost can range from 4% to 7% of the purchase price.

Taxes for new properties

Taxes for resale properties

Additional costs

Given the complexity of the process, it's advisable to hire a lawyer specialized in Turkish property law. They can handle legal checks, negotiations, and paperwork, ensuring your rights are protected throughout the purchase.

Some valuable resources for official information include:

• Turkish Ministry of Foreign Affairs: For information on residence permits and tax identification numbers.
• Tapu ve Kadastro Genel Müdürlüğü (Land Registry): For checks on property legal status.
• Türkiye Cumhuriyeti Maliye Bakanlığı (Turkish Ministry of Finance): For details on taxes related to property transactions.

13. Transfer utilities

Transfer utilities to your name and set up local services.

Many Turkish banks like Ziraat Bank, Halkbank, and VakıfBank offer mortgages to foreigners, although the terms and conditions may vary compared to those for residents.

Interest rates for mortgages in Türkiye can vary widely. For example, Ziraat Bank has rates around 9.00%, while VakıfBank has been noted for offering rates around 10.50% for its customers. These rates can fluctuate and may depend on various factors including the bank's terms and your financial profile.

How to obtain a mortgage

Generally, you'll need a valid passport, proof of income, recent bank statements, a credit report from your home country, proof of your main residence, and proof of deposit. Most Turkish banks will accept documents in English but may require notarization or translation of some documents.

After preparing your documents, the next step is to approach banks for mortgage pre-offers, which give you an idea of the loan amounts and interest rates you might expect.

Ensure all necessary documentation for the property is accurate and up-to-date, including property deeds and energy certificates.

Once the mortgage is approved, the bank will handle most of the legal and administrative tasks.

Special considerations for non-residents

Non-residents can generally obtain mortgages covering up to 50% to 70% of the property's sale price or appraised value, requiring at least a 30% to 50% down payment plus taxes and fees.

The process for non-residents involves more documentation and a slightly different approach compared to residents. It's also worth noting that non-resident mortgages often have higher interest rates than those for residents, reflecting the greater difficulty in managing international defaults.

One of the main challenges is navigating the complex legal and bureaucratic landscape. The Turkish property market has intricate regulations, particularly for foreigners, which can be daunting without proper legal guidance.

Ensuring that the property has a clear title deed (Tapu) is crucial, as any unresolved title issues or disputes could lead to significant legal complications. Engaging a lawyer who specializes in Turkish property law can help you manage the legalities and ensure everything is in order.

Another aspect to be cautious about is the due diligence process. Often, buyers overlook hidden costs such as notary fees, title deed transfer tax, and property registration fees, which can add up quickly. Additionally, if you're buying an older property, it’s wise to conduct a thorough property survey to uncover any potential defects or issues that may not be immediately visible.

Foreign ownership in Türkiye also comes with its own set of restrictions. For instance, foreigners are barred from purchasing property in certain areas, particularly near military zones or strategic locations. Verify that the property you're interested in is not located in these restricted areas and that the property type is available for foreign ownership.

Financial considerations are another critical factor. Currency fluctuations between your home currency and the Turkish lira can impact the final cost of the property. Furthermore, if you're taking out a mortgage, be aware that non-resident mortgages often come with higher interest rates and stricter terms. Understanding these financial implications in advance can prevent any unpleasant surprises.

Another important consideration is the risk of scams and fraud. The property market can attract unscrupulous sellers and agents, so it’s crucial to verify the legitimacy of the property and the credentials of those you’re dealing with. Avoid making substantial advance payments without thorough verification and legal safeguards.

Lastly, remember that the Turkish real estate market can be volatile, influenced by economic conditions and political factors. Conducting thorough market research and staying informed about long-term trends can help you make a more informed decision.

By being mindful of these potential pitfalls and taking proactive steps, you can better navigate the property buying process in Türkiye and make a well-informed investment.