Best Opportunities to Buy Real Estate in Turkey: Discover Peak Investment Times!
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The best opportunity in real estate is when you find the ideal location at the right price that fits your budget.
When considering the best time to buy real estate in Turkey, several important factors must be taken into account.
Seasonal Timing Opportunity
In Turkey, the spring season is an ideal time to explore real estate as the weather is beautiful. However, it's important to note that the most crucial period to buy real estate is during the summer, between May and June when properties are listed for sale before the three-month summer vacation begins.
Of course, spring and summer are popular times to buy real estate in Turkey, but for the savvy investor, winter is a wiser time to invest in properties. This time might offer better deals and lower prices, as demand for properties might be less during the winter compared to other seasons.
Typically, the sunny summer is the best time to purchase a motorcycle or yacht and enjoy them. However, buying a motorcycle or yacht during the winter is strategically better. As demand is low, the market shifts in favor of buyers.
On the other hand, the buying season also affects real estate. Especially when looking at coastal or luxury properties, they require suitable climatic conditions to enjoy the available lifestyle amenities.
Here are four reasons why buying property in Turkey during the winter is more economical:
Winter represents fewer interested buyers making inquiries and viewing properties, prompting real estate agents to be more motivated to complete sales.
In winter, there's less competition with fewer sellers and fewer buyers. As a result, the buyer gains more negotiation power due to decreased demand and reduced competition.
In winter, the time to negotiate contracts is faster due to reduced demand for real estate sellers and their agents. Agents become more available for customer inquiries, as the volume decreases during the winter months.
In winter, sellers' motivations might differ from the spring and summer seasons. Typically, sellers in spring and summer aim to increase demand for properties and raise prices. However, when a property is listed in the winter, it's often due to financial reasons or an urgent need to sell during the off-season.
Exchange Rate Conditions (Turkish Lira)
You might benefit from a drop in the value of the Turkish lira against foreign currencies. The local exchange rate against your currency might cost you less than before, or even save you some money. The crisis the Turkish lira faces against the US dollar indicates that the purchasing power of foreign buyers is increasing, providing better buying opportunities. Timing plays a crucial role when dealing with foreign currency, especially when talking about the Turkish lira, which lost 30% of its value in one year. This means there's a great opportunity to buy when the Turkish lira exchange rate is down by 30%, representing an attractive discount. Thus, a period of decline in the value of the Turkish lira is an excellent opportunity to buy real estate in Turkey.
One of the best opportunities to buy real estate in Turkey is to invest in off-plan real estate projects offered by developers through self-financing systems. This approach aims to reduce financial risks by selling real estate units before construction begins. Developers benefit from this strategy to boost the necessary capital for the project, providing more efficient funding than bank loans.
Though the project hasn't been constructed yet, representative houses of the final unit designs in the project are presented. As the buyer is purchasing off-plan, they rely on thorough research and due diligence in choosing the property, in addition to the developer's reputation, which plays a significant role in the purchasing process.
In conclusion, buying from a developer's plan through credit offers a great opportunity for real estate investment in Turkey, giving the buyer a chance to obtain a high-value real estate unit upon project completion, benefiting from financing cost savings and reducing financial risks.
Benefits of Investing in Off-plan Real Estate:
Choice and Customization: When buying off-plan, you get the opportunity to own a brand-new property, and you have the freedom to choose your preferred location, layout, and final materials according to your taste.
Construction Guarantees and Entitlements: Purchasing off-plan provides you with comprehensive construction warranties since you are the property's first owner, ensuring exclusive rights and benefits that enhance your confidence in the investment.
Easy Payment Method: Typically, off-plan purchase commitments are accompanied by reasonable initial financial obligations. Major or incremental installments are paid upon project delivery, offering a convenient payment plan and giving you time to plan and save easily.
Competitive Pricing: In the business world, early flight ticket prices are much lower than those purchased last minute for the same flight. This pattern is also found in real estate, where early-phase off-plan unit prices are competitive to attract sales and bring in the necessary funding to minimize financing risks. To stimulate early purchases, developers price a few units at significant discounts, typically selling them below market value to encourage taking advantage of the opportunity and achieving a good future return.
Capital Growth: By purchasing today at prices lower than the market value of properties sold upon completion, you can often achieve capital gains. In most cases, construction takes several years, and during this period, capital growth opportunities arise. Many real estate investors benefit from this method by paying early reservation offers for off-plan property units, and then selling them upon project completion to benefit from those early discounts compared to current market prices.
Resale Opportunities: For investors looking for quick profits, buying off-plan properties offers the opportunity to resell before construction is completed, benefiting from the lower prices in the early stages and the potential capital gains during the construction period.