Why should you invest in projects guaranteed by the Turkish government?
Collateral” is the most important requirement in any investment field, especially in the field of real estate investment in Turkey. Many investors want to buy and sell property in Turkey in projects guaranteed by the Turkish government. These are properties with distinct specifications that we share with you in this article.
What is the meaning of Turkish government guarantee projects?
The phrase “Turkish government guarantee projects” means all properties in Turkey created in cooperation between government sector institutions, such as architectural departments and municipalities, and the private sector is represented by real estate developers in Turkey.
The land is owned by the Turkish Government, which allocates the land to the construction company to carry out the residential or commercial construction project.
Government companies are responsible for selling and purchasing property in Turkey, which they guarantee. It sends specialized government committees to monitor the project’s completion and ensure that it conforms to construction specifications in Turkey.
Read also: What are the specifications of Turkey’s earthquake-resistant buildings?
Advantages of investing in projects guaranteed by the Turkish Government
Many investors place their confidence in investing in projects guaranteed by the Turkish government, because government guarantee means invaluable advantages, including:
– The Turkish government only deals with Turkey’s well-known real estate developers, meaning the property will be 100% guaranteed in terms of construction safety, licenses and delivery dates.
– When selling and buying property in Turkey under the guarantee of the Turkish government, the investor deals with the Turkish government directly, including paying monthly instalments of the government account directly by bank transfer.
– Property in Turkey guaranteed by the government is subject to price control, and the Turkish government offers annual rebates of up to 35% of the total remaining instalments.
– Areas with Turkish government guarantee projects contain all critical facilities, such as transport networks, schools, universities and hospitals.
Steps to buy property in Turkey with Turkish government guarantee
Steps are being taken to purchase a property in Turkey under the Turkish Government’s guarantee, in the following order:
– Find the right property, in terms of property type (residential, commercial, tourist..), Location, space and budget.
– Contact real estate developers in Turkey and book real estate visits. The investor can visit properties in Turkey whether they are complete or in the process of construction.
– If the investor decides to buy, the property is booked in his name. Read the purchase contract in detail using an interpreter.
– Choose one of the methods of paying the property price (cash or installment) and the delivery date. It is advised not to sign the purchase contract before obtaining the real estate report document. Which needs to be extracted between 3-7 days.
Read also: What is a real estate valuation and why should you get it?
– If the investor chooses to buy a property in Turkey in instalment, he/she makes the down payment before receiving the property. Payment shall be in Turkish lira and by transfer from the investor’s account to the Central Bank of Turkey.
– When buying a property in Turkey from a project guaranteed by the Turkish government, the investor can benefit from discounts and offers announced by the government annually.
Types of property purchase contracts in Turkey for foreigners
Foreign investors in Turkey are allowed to purchase real estate from projects guaranteed by the Turkish government. In one of two ways:
– Direct contract
It is a contract signed directly between the foreign investor and the Turkish Government. But the investor cannot get long-term installments.
– Contract of waiver
It means that a Turkish citizen waives a foreign investor’s contract to purchase a property in Turkey. And converting the payment plan by installment to the foreign investor. Which may be up to 10-20 years.
Real Estate Development Companies in Turkey
There are two prominent government companies operating in Turkey’s real estate sector. These are:
– Turkish Toki Company
Founded in 1984, it is one of the government’s real estate developers in Turkey. It aims to solve Turkey’s housing problem in cooperation with the private sector.
TOKI Real Estate has built more than 1 million 180,000 homes since 2022. Its residences are built according to the specifications of earthquake-resistant buildings.
The strongest evidence of Toki’s real estate guarantee was that it was able to withstand the earthquake that struck Turkey on February 6, 2023. The company announced that the buildings it built in 10 years did not suffer structural damage during the earthquakes.
– Emlak Konut
Emlak Konut follows the Turkish Urban Development Authority. Founded in 1987, it built 130 thousand housing units between 2003-2017.
After the 6th of February earthquake, Imlak Konut’s shares saw considerable investor turnout. The stock’s value has risen by about 13% in recent days.
Our experts at Dari Properties are ready to answer your queries about real estate investment in Turkey. Get in touch.