Valuation and Market
Buying a Home as an Investment: What to Watch For
Weighing return, liquidity, tax, and risk when buying a home as an investment, and which type of property suits which goal.
2 min read
Housing is one of the most common investment vehicles in Turkey. But whether a home is a 'good investment' depends not just on its price rising, but on rental yield, costs, taxes, and how easily it can be resold.
Two sources of return
- Rental income: Provides a regular cash flow; gross yield is the ratio of annual rent to the home's price.
- Capital appreciation: Realized at sale; depends on the area's development, zoning decisions, and the overall market.
Which apartment suits which goal?
| Goal | Best-suited type | Why? |
|---|---|---|
| Rental income | Small apartments (1+1, 2+1), central and close to transit | Rent per square meter is higher and finding tenants is easier |
| Capital appreciation | Older buildings with urban transformation potential and a high land share | Value comes more from the land than the building |
| Low risk | New apartments with an occupancy permit (iskan) and condominium ownership (kat mülkiyeti), inside a residential complex | High resale liquidity and mortgage eligibility |
Easily overlooked costs
- Vacancy periods
- Repairs and renovations that fall to the owner
- Property tax, insurance, and monthly dues (aidat)
- Tax on rental income
- Capital gains tax on sale (for sales within five years of purchase)
- Title deed fee (tapu harcı) and commission on both purchase and sale
Liquidity
Housing is far less liquid than stocks or bank deposits. Selling can take months depending on the market and how the property is priced. Don't tie up money you'll need in the short term in a home.
This content is for general information only and is not a substitute for legal, financial or tax advice. Rates, amounts and legislation can change over time. Confirm current information with the relevant authority or a professional before proceeding with a transaction.