Last Updated on June 2, 2024 by Ideal Editor
A Comprehensive Guide to Buying Under-Construction Property in Turkey
When a property is under construction, it signifies that the building process is actively ongoing. This can encompass a range of projects, from residential apartments to commercial spaces. These properties are not yet ready for occupancy but are being built and developed. This is a Comprehensive Guide to Buying Under-Construction Property in Turkey.
Off-Plan vs. Under-Construction Properties
Before diving into the process of buying under-construction property, it’s crucial to understand the distinction between off-plan and under-construction properties:
- Off-Plan Property: Purchased directly from architectural plans before construction begins. Buyers rely on project brochures and models to visualize the finished product. Off-plan properties often come with lower initial prices and the potential for high returns as property values increase during construction.
- Under-Construction Property: Refers to properties currently being built but not yet completed. Unlike off-plan properties, physical construction has already started, offering buyers a tangible sense of the project’s progress.
Key Considerations When Buying Under-Construction Property in Turkey
When choosing an under-construction property in Turkey, several factors are essential to ensure a sound investment and satisfactory living conditions upon completion:
- Construction Permits and Project Declaration
Ensure the developer has all necessary construction permits. These documents are crucial for confirming that the construction is authorized and adheres to local regulations.
- Developer’s Track Record
Research the developer’s history to gauge their reliability. Investigate how many projects they have successfully completed and check for any history of delays. A strong track record is indicative of their capability to deliver on time.
- Access to Essential Services
Evaluate the availability of essential services such as schools, hospitals, shopping centers, and entertainment facilities. Proximity to these services enhances the property’s value and livability.
- Transportation Links
Consider the proximity to major transport hubs like metro stations and the availability of adequate ground transport. Good connectivity can significantly affect daily commuting and overall convenience.
- Environmental Quality
Look for the presence of parks, water bodies, and the absence of nearby industrial facilities. These factors contribute to a higher quality of living.
- Future Area Development Plans
Investigate any planned developments in the area. Future constructions can impact the neighborhood dynamics, potentially increasing the property’s value.
- Residential Complex Amenities
Modern residential complexes typically offer a variety of amenities, including commercial spaces, parking facilities, security measures, playgrounds, sports facilities, and green spaces. These amenities can greatly enhance your living experience.
- Floor and Location Preferences
Preferences for particular floors can vary. Middle floors are usually the most sought-after, offering a balance between accessibility and views. High floors might provide better views and lower noise levels, while lower floors could offer easier access and larger outdoor spaces like gardens or patios.
- View and Sunlight Exposure
The orientation of the apartment affects both the views and the amount of natural light it receives. If possible, visit the site to get a better idea of these aspects, especially if the building is still under construction.
- Layout and Usable Space
Ensure the layout is practical and meets your lifestyle needs. Properties with a functional configuration of rooms and minimal wasted space are more desirable.
Researching and Selecting Reputable Developers in Turkey
Choosing a reliable developer is crucial for ensuring the quality of your investment. Here’s how to vet potential developers:
- Developer’s Reputation
The reputation of a construction company in Turkey is a key indicator of its reliability. Look for a solid history of market presence, timely project completion, and overall project quality. Speak directly to residents of previously completed projects to gather firsthand information about the developer.
- Legal Documentation
The developer should provide a registration certificate, a valid construction license, land ownership or building rights documents, and detailed architectural and structural plans. Approved project plans from relevant authorities are also essential.
- Office and Construction Site Visits
Visiting the developer’s office and construction site can offer valuable insights. A reputable developer’s office should be well-maintained and adequately staffed. An active construction site with a full workforce indicates progress and commitment.
- Researching Completed Projects
Evaluating the developer’s completed projects provides insights into the quality and durability of their constructions. Assess the condition of buildings, the quality of finishes, and the maintenance of common facilities. Talking to current residents can reveal much about the developer’s after-sales service and any issues with the property.
- Reviewing the Sales Agreement
Thoroughly review the sales agreement with the assistance of your real estate agent. The contract should clearly outline all terms, including completion dates, payment terms, fixed costs, the process for transferring the property, and both parties’ responsibilities.
Financing Options for Buying Under-Construction Property
There are several financing options available for buying under-construction properties in Turkey, which can be particularly attractive for foreign investors due to favorable conditions:
- Developer Financing
Many developers in Turkey offer direct financing options. Buyers can pay a down payment (usually between 30-40%) and cover the rest through installments. These terms can extend up to five years and are often interest-free, making them a cost-effective alternative to bank mortgages.
- Bank Mortgages
Bank loan conditions can vary depending on agreements between the bank and the construction project. If more than 90% of the construction is completed, or if there’s an agreement between the construction company and the bank, the bank can provide a loan of up to 50% of the property’s value, with the buyer providing at least 50% as a down payment. Repayment periods can extend up to ten years.
- Cash Payments with Discounts
Paying the full price in cash can sometimes yield discounts. Although this requires having the total property price upfront, it eliminates the need for financing and interest costs.
Advantages of Buying Under-Construction Property in Turkey
Purchasing property in Turkey during its construction phase offers several practical and financial benefits:
- Customization
Buyers can participate in the design process, choosing the layout, finishing materials, flooring type, fixtures, and fittings. This ensures that the apartment is tailored to your preferences, saving you from costly changes later.
- Quality and Safety Standards
Turkish construction firms adhere to strict European standards, using high-quality materials like top-grade ceramics, glass, metal alloys, and wood. Completed projects undergo rigorous inspections to ensure compliance with standards, with developers responsible for addressing any issues.
- Seismic Safety
Buildings in Turkey are designed with seismic safety in mind, using pile foundations and reinforced concrete to withstand significant stresses, ensuring a safer living environment.
- Flexible Pricing and Favorable Investment Conditions
Properties under construction are significantly cheaper than completed ones, with potential price increases of 20-30% during the construction period. Most developers offer interest-free installment plans, making these properties more accessible.
- Modern Complexes
New developments often come with luxury complex amenities, including landscaping, security, and full infrastructural facilities, providing a high-end living experience.
Investing in under-construction property in Turkey offers a unique blend of customization, quality, and financial benefits. By carefully considering the abovementioned factors and choosing a reputable developer, you can secure a valuable investment and a comfortable living space tailored to your needs. Whether you are looking for a dream home or a lucrative investment opportunity, Turkey’s real estate market has much to offer.
