Investment properties can be very different. But there is a special type of housing where you can earn more, pay less taxes, and even get additional guarantees from the developer and the mayor’s office. Today I will talk about the renovation program in Turkey in detail – I promise it will be interesting!

Renovation – what is it?

The renovation program in the real estate sector is the demolition of old and the construction of new houses. Turkey is developing very actively, quality standards and approaches to housing are being improved, which requires constant updating of the housing stock.

So, houses older than 25 years in Istanbul, Antalya and other cities are being demolished in entire districts in order to make room for high-quality modern housing, stylish, with an ennobled area, new streets and all infrastructure. It is very profitable to buy an old object or housing at the stage of excavation after demolition, and then sell the finished one with a completely renovated location around the house.

Here’s how it happens: the mayor’s office announces plans to renovate a particular house or area as a whole. The city selects the most reliable licensed developers, with the best reputation, who implement the plans of local authorities to renovate the house and location. The selection is very strict, because the company takes for demolition perhaps the only housing of a person or family – the responsibility is the highest.

I want to draw attention to an important nuance – apartments that belong to people, i.e. demolish someone else’s property. The developer undertakes not only to give them new apartments in the future, but also pays for rented temporary housing for the construction period.

That is, this is an important social issue that is closely monitored by local services, as well as by local residents themselves. Therefore, only specially selected licensed companies are allowed to this kind of construction.

Moreover, the developer cannot provide residents with housing elsewhere. According to Turkish law, tenants own not only their apartment, but also the land under the residential complex in which this apartment is located. After the demolition of the building, the construction company is obliged to return the apartment on the same land plot to the tenants.

The developer will earn money on the fact that the house after renovation usually becomes higher – all apartments located on additional floors are the company’s profit. For example, before the renovation, the municipality allowed the construction of only four floors here, but now it has given the go-ahead for the construction of a nine-story building. Accordingly, construction companies return housing in four floors to the owners, and sell everything else.

First, developers select the best objects for renovation. Then they begin conversations with tenants, negotiating with them the terms of the contract. When consent is obtained from all tenants, such a contract will be signed with each of them and notarized. After that, people are evicted, provided with temporary housing and paid rent, and after 1-1.5 years they are settled back in a new house.

This topic is interesting to many, because when buying old cheap housing, you can then, after renovation, resell it at a much higher price. We do not propose to wait for years until the old house falls under the renovation program, because we offer housing in those complexes where the developer has already entered into contracts with residents and the new house will definitely be built within 1-1.5 years. That is, we work only with those objects where there are already all guarantees.

You can try to find ahouse with a price of 50-70% of the market value, and then wait for it to fall under the renovation program. But this is almost a lost cause – you can wait a very long time and never wait. There are too many risks.

It should be understood that the construction company must not only find the old object, but persuade all residents to demolish their house, agree on the terms of the contract, notarize it and only then start work.

However, there will always be some grandfather who has a heart attached to his home, where every brick is filled with memories of his youth, and who refuses to move out and give permission for demolition.

In my practice, there was a case when the developer negotiated with the tenants for six months, was able to convince them all and already invited them to the notary’s office to conclude a contract. However, one elderly man refused to sign anything until the company named the new house after his late father… But the construction company could not go for it. As a result, the house has been standing without renovation for three years. Neither the developer nor all the other tenants were able to persuade this man.

To prevent this from happening, I advise you to buy only those houses in which all residents have already given their consent to the demolition. Otherwise, you run the risk of buying old housing, where it is simply impossible to live without major repairs (and this is a serious loss), but you will not be able to rent it out for good money. Such housing will not be liquid, it will become a burden. And if soon after the renovation of the house still decide to demolish?

It is better not to take risks and trust the professionals from Expert Property – we will select the best objects with a guaranteed result.

How to choose and buy housing for renovation?

You can buy it in the same way as ordinary housing. But, if you buy at the stage of excavation, you do not have to pay a mandatory fee of 4%, which is levied on all other real estate transactions. However, I must say right away that it is very risky to independently select housing as part of the renovation program.

You can’t do without the advice of a specialist who deeply understands the local market, because only a specialist will tell you which complex and which area will become promising after renovation and which will not. I advise you to invest in housing already at the stage of excavation. So the cost of the object will be as low as that of the old house, but you will not have to wait many years in line for construction.

In addition, the price is greatly influenced by the development of urban infrastructure in the area – only a specialist who is familiar with the municipality’s plans for the arrangement of districts as part of the renovation can indicate the optimal locations in terms of comfort and convenience. I must say that under this program, not only individual houses are being renovated, but entire residential areas or even districts. It is worth paying attention to those objects that are updated systematically, along with the infrastructure, and not to individual houses for demolition.

In general, the mathematics here is as follows. Let’s imagine that the basic cost of 1 + 1 housing in the old center of Antalya in a house of 25+ years will be 250-300 thousand liras. At the stage of excavation, you will pay 400-450 thousand lire for it, but it will be new housing. After the commissioning of the house, this price will increase by another 20-25%. Plus, in 3-4 years, when the renovation of the area is completed, the price will increase by another 20%. Agree, these are very good conditions.

Where to buy housing for renovation?

The most promising here is Antalya – the “southern capital” of Turkey. In Antalya, under the renovation program, housing is being actively built in several districts at once. For example, in the Kepez area. But it is far from the sea, has low price dynamics (+ 10-15% per year) and, in general, is considered a working outskirts, therefore it is of little interest to us.

But the central quarters in the Muratpaşa district are a completely different matter. The highest price dynamics are in such microdistricts as Yenigun, Bahçelievler, Yıldız and neighboring ones, where the maximum yield of real estate is 30-35% per annum.

Here you can find housing in the format of 2 + 1 for 70 thousand dollars. under the renovation program. At the same time, the sea is very close – only 500 m away – and this is the very center of the city with quite a decent audience, although it cannot be called an elite either.

The price is also affected by a less developed infrastructure than, for example, in Konyaalti. It will take another 3-4 years to equip it. Also, the distance between the houses is much smaller. Accordingly, it is possible to place only a parking lot, no frills.

In addition, the renovation process in the area has not yet been completed and new houses are adjacent to old ones. Although the quality of construction here is no worse than in more prestigious locations.

There are also similar programs in Istanbul and other cities, but the situation changes almost every month – you need to be a specialist to constantly monitor it. I strongly recommend contacting me personally if you want to purchase a home with the greatest benefit and with the least risks.

The renovation program promises high profits, but here you need to know the market and locations very well. The Expert Property agency has vast experience working with different types of real estate, which we have acquired over two decades on the market. We know exactly what you need and how to arrange it easily, quickly and at no extra cost.

Dear friends, if this topic was of interest to you, then please contact us for additional information – we are constantly monitoring the optimal proposals for the renovation program.

I am always glad to communicate with you!

Yours Tatiana Güneş