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Avoid These 4 Mistakes When
Buying a Property in Turkey

Published on Jan 30, 2023
Updated on Mar 11, 2025
Kourosh Soleymani

Avoid These 4 Costly Mistakes When Buying Property in Turkey

Investing in Turkish real estate is an exciting opportunity, but the process can be filled with unexpected challenges. At Homes Gravity, we are committed to helping you navigate these obstacles with ease. In this article, we’ll walk you through the four most common mistakes buyers make and show you how to avoid them. Whether you’re purchasing your dream home or a profitable investment, understanding these pitfalls will set you up for success.

Mistake 1: Buying in Foreign Currency

Imagine this: You buy a home for $100,000 equivalent to 3,600,000 TL at the time. Fast forward a few years, and due to the depreciation of the Turkish Lira, $100,000 is now worth 4,000,000 TL. If your contract is in USD, selling the property later might not yield a profit. Even if you sell for the same TL amount of 3,600,000 TL, it could equate to just $90,000 in USD.

Currency fluctuations mean you lose value without even realizing it. Unfortunately, many buyers overlook this crucial aspect when purchasing property in Turkey.

How to Avoid This: Convert your foreign currency into Turkish Lira (TL) and sign a contract in TL. By aligning your purchase with the local market, you protect yourself from unpredictable exchange rate losses. At Homes Gravity, we’ll guide you through every step of this process to ensure your investment is secure.

Why Foreign Currency Contracts Hurt Resale Value

When you purchase in foreign currency, you limit your potential pool of buyers. Most local buyers and even some international ones prefer dealing in Turkish Lira due to familiarity and ease of transaction. By contracting in USD, you inadvertently raise the bar for affordability for many prospective buyers. If you later need to sell your property quickly, you may find yourself cornered into reducing the USD price to attract interest, further eroding your returns.

Additional Tip: Use currency hedging tools or advice from financial experts to minimize risks if you plan to keep funds in USD for longer periods before converting to TL.

Mistake 2: Choosing Under-Construction Properties

It may seem appealing to buy an under-construction property with promises of modern designs and flexible payment plans. However, with rising inflation, the cost of building materials has surged. Developers pass these costs onto buyers, making under-construction properties more expensive.

Meanwhile, in the same area, you can often find ready-to-move-in homes that are 40% cheaper. These homes are new, unused, and immediately available. Additionally, under-construction projects come with risks of delays or incomplete projects, leaving you uncertain about the timeline.

How to Avoid This: Opt for ready-to-move-in properties that offer immediate value and usability. You’ll save on costs and avoid the risks of delays or inflated prices. At Homes Gravity, we specialize in identifying high-quality, ready homes in prime locations.

Hidden Costs of Under-Construction Projects

Under-construction homes often come with additional costs that aren’t immediately apparent. Delays in completion can lead to higher interest payments if you’re financing the purchase. Moreover, unforeseen increases in construction material prices can lead developers to add “adjustment charges,” further inflating your total cost. When choosing under-construction projects, you also lose the ability to generate rental income during the construction phase, which can impact your cash flow.

Mistake 3: Buying Properties Under $200,000

If you plan to resell your property to foreign buyers, it’s essential to understand residency rules. Foreigners can only apply for a Turkish residency permit by purchasing property worth at least $200,000. If your property is priced below this threshold, you limit your resale market to Turkish citizens only.

Furthermore, if your buyer seeks Turkish citizenship, they must purchase a property worth at least $400,000. However, for citizenship applications, the property must be purchased from a Turkish citizen, not a foreigner. This complicates resale opportunities for properties valued at $400,000 if you’re a foreign owner.

How to Avoid This: Purchase a property priced at or above $200,000 to appeal to both Turkish and foreign buyers. This ensures better resale potential and aligns with residency requirements for international buyers. Homes Gravity will help you find properties with the right price and potential for maximum returns.

The Citizenship Investment Challenge

It’s essential to understand that while citizenship-based investments offer prestige and legal benefits, they come with limitations. Foreign sellers are at a disadvantage because buyers who seek citizenship often prioritize properties sold by Turkish nationals. Therefore, if you plan to target this segment in the future, carefully assess your market strategy to ensure profitability.

Mistake 4: Buying in Closed Areas for Residency Permits

The location of your property can significantly impact its resale potential. Some neighborhoods in Turkey, including parts that, have been closed to new residency permits for foreigners due to high concentrations of foreign residents. Properties in these “closed areas” are less appealing to international buyers who need residency permits to live in Turkey.

Even if a buyer is willing to pay $200,000 or more, they won’t be able to apply for residency if the property is in a restricted area. This drastically reduces your pool of potential buyers and could leave your property sitting on the market.

How to Avoid This: Focus on properties in neighborhoods open for residency permits. This ensures you can sell to both Turkish and foreign buyers, maintaining demand and maximizing your property’s value. Homes Gravity’s local expertise will guide you to the best locations for long-term investment.

Understanding Location Restrictions

Restricted areas are typically determined based on the percentage of foreign residents in a neighborhood. Areas exceeding 20% foreign residency often fall under the “closed” category. Before making a purchase, ensure the property is in a zone open to foreign residency permits. Working with a knowledgeable real estate agency like Homes Gravity ensures you stay updated on these regulations.

Key Tips For a Smart Investment

How Homes Gravity Can Help

Buy in Turkish Lira: Protect your investment from exchange rate losses by using TL.
Prioritize Ready Homes: Avoid under-construction projects to save on costs and risks.
Understand Resale Value: Invest in properties worth at least $200,000 for broader buyer appeal.
Choose the Right Location: Avoid neighborhoods closed to residency permits to attract foreign buyers.
Work with Experts: Partner with professionals to navigate regulations, market trends, and best investment options.

At Homes Gravity, we pride ourselves on offering tailored advice to every client. We understand the unique challenges of buying property in Turkey and work to make the process seamless and stress-free. By avoiding these common mistakes, you can ensure your investment is both profitable and rewarding.

Contact Homes Gravity today to explore your options and make the smartest property investment in Turkey.

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Avoid These 4 Mistakes When Buying a Property in Turkey