Property in Istanbul with a residency permit
Purchasing properties in Istanbul, Turkey, for either living or investing purposes is an excellent choice for those seeking high returns, regular holidays by the picturesque coastline, or a permanent move with the option to obtain a residency permit. The local government is keen to attract foreign capital, allowing citizens of other countries to engage in transactions without any obstacles.
Some of the best locations to buy property in Istanbul include:
- Şişli: A large district located on the European side, Şişli attracts buyers looking for mid-range properties. The area is home to numerous museums, historical landmarks, shops, and entertainment venues, making it a popular choice among tourists and expatriates.
- Beylikdüzü: This district is experiencing some of the highest rates of real estate price growth, driven by the development of local infrastructure. Prices are expected to continue rising, particularly with the implementation of transport projects, such as the new metro line, which will improve connectivity across the city.
- Kağıthane: Over the past 3 years, Kağıthane has shown some of the highest sales and price growth figures. The district features bridges connecting the European and Asian sides of the city, offering residents easy access to other areas due to its strategic location.
- Esenyurt: A few years ago, the Turkish government began actively funding this district, resulting in the construction of new schools, hospitals, and other social facilities, as well as improvements to the transport infrastructure. These initiatives have contributed to rising real estate values and rental rates.
- Küçükçekmece: Located on the shores of the eponymous lake and the Sea of Marmara, Küçükçekmece mainly offers private homes, although several new apartment complexes have been developed recently. The district’s infrastructure includes 3 universities, private and public schools, kindergartens, and industrial enterprises.
Residence permit in Turkey by buying property in Istanbul
Foreigners can obtain a residence permit in Turkey by buying property in Istanbul, provided they invest at least USD 200,000 in one or more units. The residency card is issued to the primary applicant and their family members for a period of 2 years, with the option to renew it as long as the property remains in their ownership.
This permit grants investors the right to live in Turkey, access to local healthcare and education systems, and the ability to apply for Turkey citizenship by investment through naturalisation while retaining their original nationality. Foreigners who invest a minimum of USD 400,000 in real estate can immediately apply for citizenship.
Investment real estate in Istanbul
The key reasons why foreigners choose to purchase properties in Istanbul for investment purposes include:
- Favourable exchange rates: The depreciation of the Turkish lira against major global currencies offers a significant advantage for foreign investors, allowing them to purchase high-quality properties at relatively low costs.
- Infrastructure development: The city is undergoing significant transformation due to large-scale infrastructure projects that are reshaping it. New bridges, highways, tunnels, and the expansion of the metro system are improving transport links both within the city and beyond. The development of business districts, shopping centres, and residential areas is also boosting demand for real estate.
- Wide range of real estate options: Buyers can find options that suit their preferences and investment strategies. The city offers everything from luxury apartments with views of the Bosphorus to affordable homes in emerging districts. The local market includes residential, commercial, and mixed-use properties, as well as land plots.
- High rental yields: The average rental yield for apartments and houses in Turkey is 7.13% per annum. With careful selection of location, investments can yield even higher returns. For example, in Şişli, yields can reach 7.56% per annum, in Beylikdüzü 9.72%, in Kağıthane 7.17%, in Esenyurt 9.26%, and in Küçükçekmece 7.22%.
- Capital appreciation: Property prices in Istanbul are steadily rising. In April 2024, local housing prices increased by an average of 73% year-on-year. Given the rapid development of Turkey’s economy, the city’s strategic location, and ongoing infrastructure improvements, it is likely that this trend will continue. As a result, investors buying real estate in Istanbul can expect significant profits from reselling assets.
FAQ
Foreigners are permitted to purchase residential property or any other type of real estate in Istanbul. There are very few restrictions, with the only prohibitions being properties located near military infrastructure and land plots exceeding 30 hectares.
Syrians, Armenians, Cypriots, Cubans, the Taiwanese, North Koreans, and Eritreans are not allowed to own houses or apartments in Turkey. There are also specific restrictions for citizens of certain countries, such as Russians, who are prohibited from buying real estate along the Black Sea coast.