Real Estate Investment in Turkey — ROI, Income and Risks
Complete Guide to Real Estate Investment in Turkey
ROI Analysis, Rental Income Strategies, and Risk Management
Investing in Turkish real estate has become one of the most popular and secure ways to diversify capital. With attractive prices, a high tourism flow, and a stable rental market, Turkey offers strong ROI (Return on Investment) and multiple ways to profit — from short-term rentals to long-term capital growth. This guide explains how to invest safely, calculate your potential income, and avoid common mistakes.
Why Invest in Property in Turkey?
Turkey bridges Europe and Asia, offering an ideal mix of location, lifestyle, and affordability. Its real estate market remains open and transparent for foreign investors, with full ownership rights guaranteed by law.
Main advantages for investors:
- 100% property ownership for foreigners - No restrictions on foreign ownership
- Stable annual demand from tourists and expats - Consistent rental market
- Affordable prices compared to Europe and Dubai - Better value for money
- Access to residence and citizenship programs - Legal pathways to residency and citizenship
- Strong rental yield in coastal regions - High returns in tourist areas
ROI and Rental Income in Turkish Real Estate
ROI (Return on Investment) in Turkey depends on property type, location, and rental model. Generally, investors can expect:
| Investment Type | Average ROI | Notes |
|---|---|---|
| Short-term rentals (holiday lets) | 8–12% | Ideal in tourist zones — Alanya, Antalya, Bodrum |
| Long-term rentals | 5–8% | Stable tenants, less management |
| Off-plan purchases (resale on completion) | 20–40% profit | Lower entry price and high appreciation |
| Commercial real estate | 6–10% | Shops, cafes, and offices with long-term contracts |
Tip: Well-located beachfront apartments and modern residences with on-site facilities have the highest rental potential.
Best Cities in Turkey for Real Estate Investment
| City | Why Invest Here | Typical ROI |
|---|---|---|
| Alanya | High tourist demand, modern developments, stable market | 7–12% |
| Antalya | Year-round rentals, international airport, strong expat base | 6–10% |
| Istanbul | Business hub, capital appreciation, large rental market | 5–9% |
| Mersin | Affordable entry prices, growing investor demand | 7–9% |
| Bodrum | Premium seaside market, limited new land | 5–7% |
| Fethiye | Scenic area, luxury villas, sustainable growth | 6–8% |
Ways to Invest in Turkish Real Estate
1. Buy-to-Rent Apartments
The most common and reliable strategy. Buy an apartment in a complex with facilities (pool, gym, reception) and rent it out to tourists or locals. Many agencies provide full management and guaranteed rental programs.
Pros: steady income, low risks.
Cons: depends on location and occupancy rates.
2. Off-Plan (Under-Construction) Investments
Buying during construction offers discounts of 20–30%. When the project is complete, the value usually increases, allowing investors to resell or rent with profit.
Example: An apartment bought for €130,000 at the start of construction can sell for €160,000–€170,000 after delivery — a return of 25–30%.
3. Commercial Real Estate
Shops, offices, and cafes in tourist zones or large cities are stable, long-term investments. Rental contracts often last 3–5 years, with annual rent increases indexed to inflation.
4. Luxury Villas
High-end villas in Alanya, Kalkan, Bodrum, and Fethiye appeal to premium clients. They offer high resale potential and rental rates, especially when located near the sea with private pools.
Taxes and Maintenance Costs
Owning property in Turkey involves low annual expenses compared to Europe.
| Expense | Average Cost |
|---|---|
| Annual property tax | 0.1–0.3% of cadastral value |
| Maintenance (aidat) | €30–€100/month |
| Compulsory earthquake insurance (DASK) | €40–€60/year |
| Income tax on rental income | 15–35% (progressive) |
Tip: Income tax can be optimized through official rental declarations and deductible maintenance costs.
Main Investment Risks
Even in a stable market, investors should be aware of potential challenges:
- Buying in overdeveloped or closed districts (where residence permits are restricted)
- Overpaying due to poor market knowledge
- Choosing developers without legal permits
- Ignoring property management and maintenance
How to avoid risks:
Work with a licensed real estate agency that performs due diligence, checks documents, and assists with TAPU registration.
Expert Advice: How to Maximize ROI
- Choose open districts (Oba, Kestel, Demirtaş, Konaklı) for higher appreciation
- Invest near schools, beaches, and transport hubs — location drives rentability
- Consider under-construction projects from reputable developers
- Use professional management for holiday rentals
- Keep all receipts and contracts — essential for tax declarations and resale
Investment and Turkish Residence or Citizenship
Buying property in Turkey can give additional legal advantages:
- Residence permit (ikamet): for properties valued from $200,000
- Citizenship program: for investments of $400,000 or more
Both options include the buyer's spouse and children, providing long-term stability and global mobility.
RestProperty — Your Expert Partner in Turkish Investments
As one of Turkey's leading international real estate agencies, RestProperty provides full-cycle investment services:
- Selection of profitable projects
- Legal and tax guidance
- After-sales support and property management
- Assistance with residence permits and citizenship
We help you make your investment in Turkey safe, transparent, and profitable.
RestProperty — Turkey's No.1 International Real Estate Agency
Visit our office in Alanya or contact us online:
👉 restproperty.com | +90 532 777 2 777
