Buying apartments in Turkey with US dollars

Buying apartments in Turkey attracts huge money from all over the world. When investors make the decision to invest in the Turkish real estate market, they wonder about the best cash currency that they should transfer their money to in order for this money to be acceptable in the real estate market. Should it be in US dollars? In fact, there are several things that control the decision to buy apartments in Turkey with US dollars.

Factors affecting the purchase of apartments in Turkey in US dollars

There are several factors that control real estate prices in Turkey, which give us the definitive answer about the appropriate currency to buy the property in order to maintain the purchasing power of the currency in light of the current global economic fluctuations:

Real estate location:

When you know real estate prices in any region of Turkey, this helps you to seize the golden opportunity to choose the right property that will bring you a high return, as this is directly related to the location of the property.
The presence of real estate near large commercial complexes and well-known malls increases the demand for buying real estate, and thus the high price of this property according to economic theory.
The location of the property near the transportation network means ease of movement and this is an attractive factor for the investor and affects the price of the property as well.
The condition of the property, if it is new and in good condition and equipped with the necessary equipment, it will increase in demand by tenants or even by investors, which will certainly affect the price of the property or its rent, on the contrary, if the property is dilapidated, old and not equipped as it should.
Since real estate investment is considered a long-term investment, this means that it is slow to be affected by global economic fluctuations, and for Turkey, it is constantly affected by those fluctuations that besiege it, in addition to the precautionary measures taken by the Turkish government to support its economy, as it is keen to maintain good relations with the countries that are topping the list of foreign investors and thus ensuring the continuation of cash flow by these investors and feeding the real estate sector continuously in terms of demand.
The Turkish government issued a presidential decree requiring that the property be priced in Turkish lira only to ensure the cash flow of the Turkish lira and thus mitigate exchange rate fluctuations.

Changing the exchange rate against the US dollar:

Changing the exchange rate of the Turkish lira affects the costs of construction and clothing, and therefore strongly affects real estate prices in the Turkish market. We will explain this impact mechanism:
The rise in the price of the Turkish lira against the US dollar is reflected in the rise in construction costs, which inevitably means a rise in the price of the property. The very important point here is that there is a time interval between the decline in the price of the Turkish lira and the rise in the price of the property, according to economic theories according to which the reversal of the exchange rate generally takes time. It applies to all production cycles down to the final product, and here lies the golden opportunity, when the beginnings of the rise in the exchange rate of the Turkish lira appear, act quickly and buy the property, as the continuation of the exchange rate at a natural rise means the price of the same property you purchased at the previous exchange rate, the profit that you have obtained is due to the difference Between the two real estate prices when the exchange rates of the Turkish lira change, and the opposite picture appears to us when the exchange rate of the Turkish lira decreases and its impact on the decrease in construction costs (but not as quickly as the increase in costs), which means a decrease in real estate prices as well.

Buying apartments in Turkey in US dollars or in Turkish lira

1) There are several factors that control the severity of the change in the exchange rate of the Turkish lira and thus the slight impact of real estate prices in the Turkish real estate market, so we can say that buying a property in Turkish lira is better.
2) Buying property in Turkish lira is not always better than buying it in US dollars. When the value of the Turkish lira gradually declines, in this case, buying the property in Turkish lira is better than the US dollar, while in the opposite case when the Turkish lira recovers and its value rises, it is better to buy the property in US dollars.
3) The buyer of the property in Turkish lira can save on the costs of buying the property. At the beginning of the project, the investor needs financing to complete the project stages, and here the buyer can intervene and obtain offers.
4) Obtaining Turkish citizenship through real estate investment forces us to buy real estate in Turkey in US dollars, where the minimum price for the property was 250 thousand US dollars, while recent news indicates that this limit has been raised to 400 thousand US dollars as the price of the property in order to obtain Turkish citizenship .

Conditions for buying a property in Turkey

Reviewing the real estate registry to provide the investor with all the necessary information about the property before signing any contracts of a legal nature.
Choosing the real estate area is an important and basic condition in the real estate investment process. The real estate must not be in military areas or affiliated with security areas, due to the existence of a law prohibiting the sale of such real estate to foreigners.
An investor wishing to invest in real estate in a particular project must inform the relevant ministry of the type of project, whether it is agricultural, industrial, educational or commercial.
Ensure commitment to bilateral trade agreements between Turkey and other countries, as well as international standards for real estate investment, especially since Turkey is constantly seeking to develop the investment environment in the country.
Some conditions alert the investor to some important notes that he may not pay attention to. It must be ensured that the property owner has the authority to dispose of his money or not, such as if these properties are under seizure, for example.
There is an important step to take into consideration, if you want to invest in real estate in Turkey, you should look for the right real estate agent.
The Turkish government has determined the area of the property included in the real estate investment, and its area should not exceed 30 hectares, in all Turkish regions.
The person coming to the real estate investment in Turkey must make sure of the technical condition of the property if it is old and in need of many maintenance operations or if it is in good condition.

Buying apartments in Turkey with US dollars

Table Of Content

Factors affecting the purchase of apartments in Turkey in US dollars

Real estate location:

Changing the exchange rate against the US dollar:

Buying apartments in Turkey in US dollars or in Turkish lira

Conditions for buying a property in Turkey

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