Legal challenges of real estate investment in Türkiye

Over the past two decades, Turkey has witnessed a significant boom in the real estate sector, making it one of the most prominent investment destinations for both local and foreign investors. With government incentives such as granting Turkish citizenship in exchange for real estate investment, demand for real estate has increased in major cities such as Istanbul, Ankara, and Antalya .

However, despite this attractiveness, some investors face legal challenges that could impact their investments if not handled properly. This article highlights the most prominent of these challenges and provides tips for avoiding them, ensuring a safe and successful investment experience in Turkey.

The most prominent legal challenges in real estate investment in Türkiye

1. Restrictions on foreign ownership in some areas
   Although Turkey opened real estate ownership to foreigners in 2012, there are specific areas where foreigners are prohibited from owning property, particularly those near military installations or security-sensitive areas. Failure to understand these restrictions could result in the cancellation of the deal, even after the agreed-upon amounts have been paid.
2. Problems related to title deeds (tabu)
   One of the most important steps in purchasing a property is obtaining a title deed officially registered in the buyer's name. Some investors make the mistake of simply relying on preliminary contracts without ensuring the property is registered with the Land Registry, exposing them to future legal risks.
   
3. Dealing with unreliable companies or brokers
   Amid the overwhelming demand for investment, some unlicensed offices or individuals have emerged, exploiting the lack of experience of foreign investors, potentially leading to fraud or the sale of substandard properties.
4. Difference in contract terms
   Some contracts may contain unclear clauses or legal wording that is not in the buyer's best interest, especially in off-plan properties. This requires review by a qualified attorney before signing.

Tips to avoid legal challenges and ensure a safe investment

1. Hiring a real estate lawyer in Türkiye
   Having an experienced attorney ensures that all documents and contracts are reviewed and that legal procedures are in place before completing the transaction.
2. Verify the title deed and the title deed
   Ensure that the property is officially registered with the Land Registry Office and is free of any debts, mortgages, or legal disputes.
3. Choosing certified development companies and brokers
   Deal with reputable real estate companies with a reliable history in the market, and avoid informal dealings or unlicensed offices.
4. Knowing local laws
   Before purchasing, check the laws regarding foreign ownership, property taxes, and property transfer procedures to avoid any surprises later.
5. Document all agreements in writing.
   Avoid verbal agreements, and always ensure that all terms are in writing and formally documented, with deadlines and penalty clauses for delays.

The role of real estate in protecting foreign investors

Benaa Real Estate understands the challenges foreign investors may face in the Turkish market, so it provides comprehensive legal and advisory services to ensure a safe and risk-free investment.

This includes:

• Check the legal status of the property and the title deed before purchasing.
• Review contracts and ensure they are free of any unfair clauses against the buyer.
• Accompanying the client throughout all stages of the purchase process, from selecting the property to completing the registration in the Land Registry.
• Providing personalized advice on the best areas where foreign ownership is permitted.
• Ensuring complete transparency in all transactions, while providing clear and accurate reports to the investor.

Safe investment starts with knowledge

Real estate investment in Turkey offers significant opportunities for profitable returns, but it can also involve legal challenges that require awareness and caution. By familiarizing yourself with local laws, selecting reliable partners, and consulting specialized experts, investors can protect their money and achieve their goals with confidence.

With Benaa Real Estate , you'll receive the legal and advisory support you need to ensure a smooth and secure buying experience, making your investment in Turkey a well-thought-out step toward success.