How to finance a property purchase in Istanbul?
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How to finance a property purchase in Istanbul?

Created: 2023-05-03 Modified: 2023-11-21 Views: 1013 Luxury Signature Admin
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How to finance a property purchase in Istanbul?

There are several ways to finance a property purchase in Istanbul, including:

  1. Cash payment: If you have enough savings or liquid assets, you can pay for the property in cash. This will give you the advantage of not having to pay interest on a loan or mortgage. There are also a few advantages to making a cash payment when buying a property:
  • Strong bargaining power: Cash buyers have more bargaining power than buyers who need financing. They can often negotiate a lower price for the property because the seller doesn't have to worry about the deal falling through due to financing issues.
  • Faster closing process: Cash transactions can typically close much faster than financed transactions because there is no need to wait for loan approval or underwriting. This can be especially beneficial in competitive real estate markets where quick transactions are more attractive to sellers.
  • Avoidance of interest: By paying cash, buyers can avoid paying interest on a mortgage, which can add up to thousands of dollars over the life of the loan.
  • Simplification of the buying process: A cash purchase can simplify the buying process because there is no need to coordinate with a lender, provide financial documentation or go through the loan application process.
  • Potential for better deals: Cash buyers may be able to get better deals from sellers who are motivated to sell quickly. This can result in a lower purchase price for the buyer.
  • Obtaining the title deed without delay: in the case that the payment is not completed, the title deed will not be obtained, and therefore real estate residence or Turkish citizenship will not be obtained.


  1. Mortgage loan: If you don't have enough cash to pay for the property, you can consider taking out a mortgage loan. You can apply for a mortgage loan from a bank or other financial institution in Turkey. The loan amount and interest rates will depend on various factors such as your credit score, income, and the value of the property. There are several advantages of using a mortgage loan to purchase a property:
  • Lower upfront costs: With a mortgage loan, buyers can make a smaller down payment and spread the cost of the property over a longer period of time, making homeownership more accessible to those who cannot afford to pay cash upfront.
  • Improved cash flow: Instead of using all available cash to purchase the property, borrowers can use the funds for other purposes, such as investments, emergency funds, or other expenses.
  • Opportunity to build equity: With each mortgage payment, borrowers build equity in the property, which can be a valuable asset in the long term.
  • Tax benefits: Mortgage interest and property taxes are taxdeductible, which can help reduce the cost of owning a home.
  • Improved credit score: By making regular payments on time, borrowers can improve their credit score, which can lead to better interest rates and more favorable loan terms in the future.
  • Potential for appreciation: Real estate can appreciate over time, providing the potential for a return on investment when the property is eventually sold.


  1. Developer financing: Some developers may offer financing options to buyers. This can be a good option if you don't qualify for a mortgage loan or prefer to deal directly with the developer. However, you should carefully review the terms and conditions of the financing offer before committing to it.


It is important to research and compare the different financing options available to you and choose the one that best suits your needs and financial situation. You should also consult with a financial advisor or lawyer to ensure that you understand the terms and conditions of the financing agreement and are making a sound financial decision.


Flexible payment methods when buying real estate in Istanbul

Flexible payment methods are becoming increasingly common in Istanbul's real estate market, and developers and sellers are offering various payment options to attract buyers. Some of the flexible payment methods that you can consider when buying real estate in Istanbul are:


  1. Installment plans: Many developers offer installment plans that allow you to pay for the property over an extended period, usually ranging from one to five years. The payment terms can be customized to suit your financial situation, and you can negotiate the payment schedule and interest rates with the developer.


  1. Down payment and balloon payment: Some sellers offer the option of making a substantial down payment upfront and paying the remaining amount in one lump sum after a certain period. This is known as a balloon payment and can be an attractive option for buyers who have significant cash reserves.


  1. Joint venture: If you're interested in investing in real estate but don't have the necessary funds, you can consider a joint venture with a partner or developer. This involves pooling resources and sharing profits from the investment.


It's essential to carefully review the terms and conditions of any flexible payment option before committing to it and seek advice from a financial advisor or lawyer to ensure that you understand the implications of the payment plan.


Real estate prices in Istanbul 2023

The real estate market in Istanbul has contributed to the Turkish economy's obvious growth in recent years. There has been an increase in demand for apartments and other real estates, which has resulted in higher prices. The Turkish government has surprised the world in 2023 with brand-new, expansive projects that will revitalize the residential real estate market. 

Economic analysts expect a promising future for the Turkish real estate market in the current year 2023. If we compare the past years, and despite the crises it went through, the real estate field in Turkey has achieved high records.

Frequently asked questions

Is it possible to buy an apartment in installments in Istanbul?

Many developers offer installment plans that allow you to pay for the property over an extended period, usually from one to five years. Payment terms can be customized to suit your financial situation, and you can negotiate payment schedule and interest rates with the developer

What are the advantages of paying cash when buying a property?

Cashing in on real estate purchases allows greater bargaining power for cash buyers, closing the sale quickly without waiting for loan approval, avoiding paying mortgage interest and simplifying the buying process.

What are the reasons for the high real estate prices in Türkiye?

There are several basic factors that led to a significant increase in real estate prices in the recent period, especially after the end of the Corona epidemic, the most important of which are: global inflation, which significantly affected the prices of building materials, on the date of 6/2023, the increase in iron prices reached 80%, and for the rest of the construction materials increased by 25%. Also, supply and demand, which greatly affects real estate prices, especially in Istanbul, due to the lack of lands suitable for construction near areas with important infrastructure, and the great development and urban renaissance taking place in Turkey, especially Istanbul, also affects the high price of real estate.

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