Are under-construction projects in Turkey reliable?

One of the constant concerns for individuals interested in investing and purchasing property in Turkey is whether under-construction projects and ongoing building projects in the country can be trusted. This question particularly arises for those unfamiliar with the Turkish real estate market. There’s often a perception that under-construction projects in Turkey are similar to those in Iran, which leads to hesitation in buying.

In this article, we will delve deeper into these projects, their conditions, and their investment value to provide you with more details about these opportunities.

The price of properties in under-construction projects is lower than ready-to-deliver projects

The first point to consider regarding under-construction projects is their reasonable price. Typically, when these projects are in their initial launch phase or, as they say, “excavation,” and construction hasn’t yet begun, they have the lowest prices. At this stage, the price of units in these projects is comparable to units that are several years old or second-hand in the same area. This situation presents the best opportunity to buy a house in Turkey; because you will own a new property by paying a similar cost to a second-hand property!

Investing at this stage of the project allows you to sell the unit at the current price of a brand-new property after completion and delivery, earning a significant profit. Furthermore, investing in these projects offers other financial benefits, such as long-term installment payment options. While installment conditions vary across different projects, developers usually try to make conditions favorable for foreign investors by offering flexible repayment plans.

The title deeds of under-construction projects in Turkey are ready for delivery

Another common ambiguity about under-construction projects in Turkey concerns property deeds. Many individuals enter Turkey with a background in the Iranian real estate market and assume that under-construction projects in Turkey also lack ready deeds. However, the reality is entirely different. In Turkey, the title deeds for under-construction properties are ready and issued by the municipality from the completion of the first floor (known as the “second roof”) onwards.

This means that if someone buys an under-construction unit in cash, their property deed is ready. Only in the case of installment sales is the property deed transferred to the buyer’s name after all installments are fully settled. Nevertheless, even in installment sales, the transaction is conducted with an official and notarized (noter) contract, and the deeds are ready.

An important point for applicants seeking a Turkish passport through the purchase of an under-construction property is that in projects with installment sale conditions, you can apply for a passport with the same notarized (noter) contract for the property; providing the deed is not mandatory.

Another crucial point regarding property deeds in under-construction projects is that for projects whose developers are GYO companies (reputable and state-backed Turkish developers), the property deeds are ready from the excavation stage. This is due to the high credibility of these developers and their projects, leading the government and municipality to issue unit deeds from the very beginning. Even for semi-private and private companies, given the credibility that developers have established and proven to legal and governmental authorities based on the scale and scope of the project, the government proceeds with issuing unit deeds.

High investment returns and profitability of under-construction property projects

As mentioned, purchase prices in these projects are very reasonable. However, in terms of investment returns and profitability, under-construction projects in Turkey offer higher returns compared to ready projects. In other words, you will definitely profit regardless of the stage of the project at which you invest. However, entering these projects at two specific stages will significantly increase your profitability:

Excavation and project commencement stage:

At this stage, unit prices are at their lowest, comparable to the prices of second-hand units in the area. Investing at this time will yield extraordinary profits after the project is completed and the unit is delivered. This is because, in addition to your unit’s price reaching that of new units in the area upon completion, your property’s value will experience additional growth alongside the overall increase in property prices in the region

A few months before project delivery:

The second stage is when approximately 3 to 4 months remain until the entire project is completed and delivered. Usually, during this period, the project’s price also increases; because the project is nearing completion and preparation for delivery, and its price is approaching or even exceeding that of new properties in the area. Investing at this stage will bring you very good profits in a short period.

The developers of these projects are state-owned companies or reputable private companies

The credibility of the developing companies is a very important issue when discussing buying property from under-construction projects These companies include state-owned companies, GYO companies (which operate under full government supervision), and reputable international companies . Generally, state-owned developers and GYO companies have higher credibility than other developers. For other projects, it is highly recommended to seek advice from an experienced and expert consultant who is fully familiar with Turkish construction companies.

Good consultation can perform the necessary research and investigations and help you make a more confident choice. For further reading, we suggest you read the article introducing famous Turkish GYO developers.

How to invest in under-construction projects in Turkey?

Investing in under-construction real estate projects with reputable developers and ready deeds can be a smart way to invest in the Turkish real estate market due to excellent returns and profitability.

If you would like to learn more about these projects in detail, we suggest you take advantage of a free consultation with our experts. Our experts specialize in real estate investment in Turkey and Istanbul. In addition to introducing the most reputable developers and under-construction projects in Turkey, we will be by your side throughout all stages of property purchase, with the cooperation of experienced Turkish lawyers and our professional specialists, to ensure you experience a profitable and reliable investment.

If you wish to obtain more information about purchasing property in these projects, simply leave your contact information in the comments section of this article. Our experts will contact you as soon as possible