Is it more logical to buy a property from a developer or a resale property in Turkey?

Decision Making Deciding to buy an apartment in Turkey, whether for investment or residency, is one of the most important choices that can affect your financial future and life. The real estate market in Turkey, especially in large cities like Istanbul, has always held a special appeal for foreign investors.

However, the main question many buyers face is: Is it more logical to buy an apartment from a project under construction, or a resale apartment? This article aims to provide a comprehensive analysis based on accurate and specialized information to help you make the best decision based on your goals and circumstances.

What Is Your Goal for Buying Property in Turkey?

The answer to this fundamental question completely depends on the buyer’s situation. Before making any decision, you must specify your main goals for buying property in Turkey. Is your sole purpose to invest and earn a profit, or do you intend to reside in Turkey and live in the apartment you purchase?

A) Goal of Residency and Living in Turkey

If a buyer intends to live and obtain a residence permit in Turkey, according to the law related to property-based residency through apartment purchase in Istanbul and Turkey, the buyer must live in the house they obtain residency with. Therefore, the house must be habitable. This means it must be ready for occupancy when you buy it.

In this case, you can either buy a brand-new, ready-to-move-in property from developers, or a used property that was previously purchased by another owner and is either completely new (never lived in) or has an older construction date.

The reason we recommend buying a resale property is that their prices are lower compared to new units from developers. This is because these properties were previously bought by owners during the pre-sale phase at a reasonable price. The owners have already made a profit once from the time of pre-purchase until the property was delivered. Consequently, they now sell their property at a more reasonable price than the developers. The main advantage of buying a resale property is its more affordable price compared to new, ready-to-move-in properties.

Advantages of buying a resale apartment for residency:

• + Ready for immediate occupancy: No need to wait for construction to finish.
• + Ability to inspect the property closely: You can see the actual condition of the apartment before buying.
• + Familiarity with the area and neighborhood: You can get to know the surroundings and neighbors better before moving in.
• + More reasonable price compared to developers: You can buy a new and ready-to-move-in property at a lower price than new properties from developers.

B) Goal of Higher Profit through Real Estate Investment

in Turkey In real estate investment, capital growth and higher profits are influenced by two factors: the time of purchase and the property’s location. Below, we explain when and in what locations to buy a property to make a significant profit!

Time of Purchase: This is a key factor that will lead to greater capital growth, one that most buyers overlook.

Project Launch Time

A project launch is the beginning of sales for a new construction project by the developer. At this time, the project’s price is set to be competitive with the price of 15-year-old resale apartments in the same area. This is a unique opportunity for investors seeking to maximize profit. As the project progresses through the construction phase, the price will increase by at least 50%.

Investors at the launch time will own a brand-new property in the near future at the price of a 15-year-old property in the area, and they will even have easy payment terms. Most Turks make their investments at this time with their minimum budget.

Time Close to Project Delivery

In the final months leading up to the delivery of projects under construction, prices will increase by at least 20%. This period is also suitable for buying a house in Turkey for investment purposes. At this stage, a major part of the construction is complete, and the risks related to delays or non-completion of the project are minimized.

A project under construction is highly appealing to those looking for a combination of investment profit and the possibility of living in a new and modern property. You can either rent out the property for a while after delivery and then move in yourself, or you can sell it immediately after delivery and gain a significant investment profit in a short time.

Time of Global Market Stagnation

ue to a stagnant market and reduced demand, this situation can provide a golden opportunity to buy a property below market value, especially for resale apartments with owners who are “cash-strapped.” Developers are unwilling to sell below their price during a global market stagnation due to their financial backing and power. However, to maintain capital flow, they may offer installment plans with minimal or no down payments. Buying during a market downturn is very important and shows investment shrewdness.

Property Location

Projects under construction are often located in newer areas with high growth potential. These areas are typically undergoing urban development, and new infrastructure such as shopping malls, hospitals, schools, and public transportation systems are being built. With the growth of the area, prices increase.

Resale apartments are usually located in more established areas with complete infrastructure. Choosing smaller-sized housing units near employment hubs or by the sea with excellent public transportation access is the best option for your investment to have stable growth.

Advantages of buying a project under construction from a developer

They benefit from the latest materials and new building technologies, such as the ability to provide electricity with solar panels, water from rain, underfloor heating, and smart home systems.

Modern design and up-to-date amenities with new layouts that meet the modern era’s needs.

Many developers offer flexible payment terms with long-term installments and minimal down payments.

They have significant profitability and investment growth.

They do not require renovations, remodeling, or additional costs.

And the conclusion?

Ultimately, the choice between buying an apartment from a project under construction or a resale apartment in Turkey depends on your goals and priorities. If your main goal is immediate residency and a comfortable life, a resale apartment is a more secure and logical option.

However, if you are looking for a high-profit investment with controlled risks, especially during a global market downturn, and time is not a critical factor for you, projects under construction can provide golden opportunities. Those interested in Turkish citizenship can buy both types of properties, a project under construction or a resale apartment. However, the required conditions for citizenship are more easily met when buying from a developer.