Every day, we receive dozens of questions and inquiries from followers of the Golden Group for Real Estate Investment.
through our social media platforms and on our official website about property ownership, real estate investment in Turkey, or obtaining Turkish citizenship.
One of the recent prominent questions relates to the possibility of dealing with a property, whether using,.
renting, or even selling it before the completion of construction and the delivery of properties by the construction company.
Who is the construction company?
The construction company is the contractor responsible for building a residential complex in a specific area on buildable land.
It must obtain a building permit from the municipality of the area.
Real Estate Projects in Turkey:
- A real estate project in Turkey involves the construction of a community, which can be residential, commercial, or a combination of both.
- It may include residential buildings with apartments, villa buildings, office buildings, and commercial buildings.
- Each building consists of several floors, with distinctions between each building, walkways, jogging paths, family sitting areas, green spaces, and various amenities.
- All real estate projects in Turkey include services that may vary according to the construction plan.
- These services may include parking facilities, elevators, security through surveillance cameras and a security office.
- reception and inquiries, green spaces, sports fields, playgrounds, gyms, Turkish baths, saunas, meeting and event halls, commercial shops, and more.
Projects under Construction in Turkey:
- Construction companies in Turkey, whether government or private, aim to construct real estate.
- complexes and sell their properties to Turkish and foreign buyers within specific years.
- according to Turkish real estate laws and eligible foreign nationalities for property ownership.
- Initially, a construction company announces its intention to build a real estate complex, releases images and plans.
- and creates an architectural model that illustrates the project’s details.
- This includes the building’s shape, height, distribution, the number of apartments, entrances, services, and the construction plan.
- After obtaining the building permit from the municipality and contracting with the landowner, or being the landowner itself.
- the company creates a miniature architectural model (maquette) that shows the project’s details in a smaller scale.
- At this stage, a set of properties within the project that has not started construction yet is often offered for sale at significantly discounted prices.
- This is done for investment and marketing reasons and to finance the project. The number of these properties is usually very limited, for example, 20 out of a total of 500 properties.
- In the second stage, excavation and foundation work begin according to standard construction measures.
- including seismic resistance systems. The construction company then opens sales for a new set of properties.
- but at a higher price than when the project was still on the drawings. Afterward, as the floors rise.
- the company opens sales again at a higher price than the first two stages. This price escalation continues until the completion of construction.
- At this point, property prices in this real estate project have increased by about 200% to 300%
- between the pre-construction and completion periods. This alone is an attractive investment factor for many investors.
- Real estate construction projects in Turkey usually take between 3 to 5 years.
- depending on the project’s size, the number of buildings, stages, services, the construction company’s strength, and financing.
Initial Property Sales Contract in Turkey:
- The initial sales contract is a document concluded between the construction company (first party and the buyer (second party).
- It includes personal information about both parties in its first section.
- The subsequent sections detail the sold property, including its area.
- floor number, the number and distribution of rooms, view, ceiling height, apartment façade.
- and the electrical and kitchen appliances that will be delivered with the apartment.
- The contract also specifies the delivery date, the rights and obligations of both parties, and once this contract is signed willingly by the buyer.
- the purchase process is considered complete, whether the payment is in cash or instalments. Bank transfer receipts must be retained.
- The contract must then be notarized through the Turkish notary public to gain legal status for use in court in case either party fails to meet its obligations.
Can the property owner deal with the property before delivery by the construction company?
- The contract imposes several conditions on both parties that must be adhered to.
- Among the conditions imposed on the buyer, who signed willingly.
- is the inability to take possession of or rent the apartment before the completion of all construction works.
- This is until the transition from the “interim deed” stage to the “full deed” stage and the delivery of the property keys to the buyer.
- If the buyer wishes to sell the property during the construction period for any reason.
- only the construction company has the right to purchase the property from the owner (if it wishes).
- The buyer cannot, in any way, sell the property to a third party until the construction company takes possession of it after its completion.
- At this point, the owner has the right to deal with it as desired, whether for residence, rental, or resale to a Turkish, Arab, or foreign buyer alike.
- During the construction period specified as a clause in the contract, the buyer is not allowed to deal with their property.
- without the construction company’s approval, as the company is responsible for it until its complete delivery.