The real estate market in Turkey is experiencing an extraordinary rise. Today Turkey offers the most loyal conditions for obtaining a second passport for investment. The country itself is famous for its high standard of living, and mild climate, registration of Turkish citizenship gives a lot of advantages to the owner - no wonder that the purchase of local real estate has always been in high demand among those who want it.
October 2023 was no exception. According to the information of the Turkish Statistical Institute (Turkstat), for the past month, citizens of the Russian Federation purchased more than 2000 real estate objects, thus surpassing residents from other countries. This is almost 2 times less than in the same period last year. Unfortunately, in comparison with last year, prices have also changed:
the cost of residential properties increased by 109%;
the cost of rent has also risen by 136%.
Price increases are not the only new developments of the past month. About two weeks ago the first rumors about changes in the conditions for obtaining a residence permit for the purchase of any type of real estate - about this further in our material.
Residence permit and citizenship for the purchase of real estate
Getting a residence permit for the purchase of real estate can be for 2 years, then the status is allowed to extend. To extend the term of residence permit, it is necessary to spend in Turkey more than 183 days a year.
There are several ways to obtain a passport for the purchase of real estate. Choosing the option "Citizenship for Investment", the applicant needs to purchase an object, the appraised and cadastral value of which starts from $400,000. It will be necessary to keep the real estate in possession for 5 years, and then the property is allowed to be sold, keeping the passport and privileges. By the way, the conditions for participation in the program "Citizenship for Investment in real estate" are still unchanged, but today there are rumors that the investment threshold may be raised to $ 750,000 and even up to $ 1,000,000.
Residence permit for the purchase of real estate in Turkey - what to expect?
On the official portals, there is no information about the change in conditions, but more and more independent sources claim the opposite. We will tell you what we managed to find out as of today. Currently, the Internet is actively musing rumors about raising the threshold for obtaining a residence permit for investments up to $ 200,000.
Migration officials do not officially confirm, but also do not deny this fact, Turkish realtors are already orienting clients to the changed rules. While we wait for official information.
Over the past couple of years, new requirements have regularly appeared in Turkish migration legislation, so it would not be surprising if the rumors turned out to be true.
Key points:
26.04.2022. The minimum threshold of real estate value for obtaining a residence permit under TAPU (ownership) is established: 75,000 $ for real estate in large cities and 50,000 $ if the object is located in a small city or town.
01.07.2022. Introduced the first restrictions on registration of primary residence permits for foreign residents. In some areas, their number is within 20% of the total population. The list of locations was publicized on official portals.
16.10.2023. There appeared a decree in the status of "for official use", according to which the cost of residential real estate for registration of residence permit starts from $ 200 000. The property must be located in an area authorized for purchase by foreign residents.
Homeowners who had time to issue TAPU before October 16, can not worry - the innovations will not affect them. They will be able to prolong the previously obtained residence permit under the old conditions. When prolonging the status of the migration service will study the following criteria: the date of receipt of TAPU, what is written in the certificate of ownership, closed or accessible area for foreigners, valuation, and cadastral price of the object.
How the value of the object will be calculated
200 000 $ will be calculated at the official exchange rate of the Central Bank on the date of registration of TAPU. Given the inflationary "swings" with the Turkish lira, experts advise to add insurance 10% to the minimum cost of the object.
Also, it will not be possible to apply for a residence permit based on the purchase of several budget properties in Turkey. 200 000 $ - this is the starting value of one real estate object.
Another important point - from October 16, the migration service will assess both the cadastral and market value of the object. What does this threaten? The number of objects that meet the conditions for obtaining a residence permit will sharply decrease.
If you are late...
Owners who received TAPU before October 16, can congratulate themselves. What about those who bought real estate before October 16, but TAPU has not yet formalized? Unfortunately, they fall under the new conditions. If their goal is not just to buy real estate in Turkey, but to obtain a residence permit, it is necessary to provide the migration service TAPU, where the appraisal and cadastral value will be greater than or equal to $ 200,000. If the object is recorded in equal shares among several family members, no one will receive a residence permit.
The real estate market in Turkey: what reaction should we expect?
Today there are enough foreign residents in Turkey, and this is one of the reasons for the tightening of migration laws. According to realtors, the share of buyers who register a residence permit based on the purchase of real estate is about 10-15%.
Is expected to fall in prices in the Turkish real estate market after the innovations? Experts believe that no. The bulk of buyers simply do not care about the new requirements. Another point is that the inflation rate in the country is quite high, and this has a huge impact on pricing policy.
If you are planning to obtain a new status or even a passport in Turkey, the lawyers of GARANT.IN migration agency advise you to hurry up. We regularly urge our clients not to postpone their plans - the situation is constantly changing, and delay in such cases has unfortunate consequences. For our part, we are always ready to provide comprehensive legal support - to advise, help with the collection, execution, and translation of documents, select and help buy an object, obtain a TAPU, and solve other important issues.
