Purchasing off-plan real estate in Turkey: risks, benefits, and tips

The Turkish housing market is booming. Many Turkish people and foreigners are interested in purchasing a buy-to-invest housing, such as properties for sale in Mahmutlar. This trend may be justified by the broad range of villas and apartments that follow the latest architectural trends. They are put up for sale in all regions of the country at affordable prices.

Off-plan real estate is one of the segments that draws the attention of potential investors and end-users. Keep reading this article to learn more about possible benefits and how to avoid probable risks.

What is off-plan real estate?

Any property market has four categories of housing units:

  1. Property in need of renovation. Old buildings and structures that urgently require major renovation and/or cosmetic repairs.
  2. Secondary housing units. Residential properties with one or more owners.
  3. New buildings. Ready-made houses that have not had an owner yet.
  4. Off-plan units. These are buildings under construction.

A significant difference between buildings under construction and the other three categories is that they are unsuitable for residing. Buyers of off-plan properties cannot move in immediately after a real estate transaction is closed. They have to wait for six months to two years before receiving deeds of ownership for the properties.

Why is it profitable to buy off-plan real estate in Turkey?

Off-plan units offer double benefits for investors. First, they pay significantly less for the selected unit in comparison with the market home prices. This is important in expensive cities like Istanbul and Antalya. Second, the purchased property will rise in price after the building’s commission. Reduced cost provide capital gains as high as 30%.

In addition, properties under construction allow investors to participate in and contribute to the construction of their future housing. Major structural changes, such as the transformation of three bedrooms into two large rooms, and minor adjustments, such as changing a colour scheme, can be made according to their preferences.

For those who are interested in interior decor and design, an off-plan unit is a blank canvas for creating a masterpiece. It’s not like the old days when buying an this property type was risky in terms of size and appearance. These days, architects and construction firms use 3D technology to create presentations, layouts, and precise floor plans for homes.

The off-plan investment strategy is especially relevant in sought-after tourist destinations like Istanbul and Antalya. The average home prices are high in their city centers. Developers offer reduced prices and flexible payment plans. As a rule, a down payment is 20-30% of the total price. Investors cover the rest within 36-40 months.

What are the risks of purchasing off-plan real estate in Turkey?

As is the case with any other financial investment, off-plan real estate may lead to some risks. But there are legal measures that protect the buyer if the construction process is not completed or its quality does not meet the required standards.

Before signing any contract or transferring a deposit, it is necessary to learn about the developer’s reputation. Especially for beginners who are not familiar with the Turkish property market. They should not support new startups or one-man companies seeking funding. Respected developers have financial support, and they do not need to set unrealistic terms to attract buyers.

Here is a complete list of details that the buyer of an off-plan unit should pay attention to:

  1. Contractors, companies, and holdings. As it is mentioned above, the first thing to study is the seller’s track record of the to get acquainted with his previous projects and review reputation.
  2. The “Do not sell” obligation in the agreement. If the agreement specifies a “Do Not Sell” obligation, the future owner will not have the opportunity to sell the property in the short-term.
  3. Payment and loan. The most important issues following the decision to purchase real estate are payment and credit. The buyer should select an affordable housing unit and negotiate with the developer on payment terms suitable for both parties.
  4. Square meters. The buyer should immediately clarify the property’s area indicated in the contract, net (living part of the premises with loggias and terraces) or gross (the entire built-up area with a parking space, elevator, supporting structures, interior walls, etc.).
  5. Construction permit. It is also necessary to request a building permit and check the document. The buyer should be sure that the indicated number matches the license number.

Assistance with buying property in Turkey

With the help of the Internet, investors can easily check the developer’s reputation, get acquainted with his previous projects, and study customer reviews. However, they won’t have to worry about these issues they partner with a trusted aggregator like Turk.Estate. The highly qualified company’s specialists care about maintaining their reputation, so they carefully check the real estate developers and agencies whose offers fall into its catalog.

The aggregator has proven experience in the Turkish real estate market and cooperates only with well-known companies. Its representatives check all documentation connected to off-plan projects so that buyers won’t be at risk. Go to the official aggregator’s website and check out the best offers on the Turkish housing market right now.