Real estate investment in Spain compared to Turkey

Many investors consider investing in a country from the European Union such as Germany, France, or Spain. However, with a comprehensive view, we can raise the following question: Could investing in another country that is not a member of the union, like Turkey, be safer and more successful? In this article, we will try to answer objectively by comparing real estate investment between two European countries: Spain and Turkey.

Is real estate investment in Spain profitable?

Real estate investment in developed countries is generally a field that brings benefit and profit to investors, and this is not limited to a specific country like Spain. The vibrant real estate market is spread across several countries in the world, including Germany, France, Britain, Spain, Turkey, and other European countries with active real estate markets.

What are the advantages of real estate investment in Spain?

Every country with a thriving real estate market has its own advantages and positives, and this applies to Spain as well. Among its advantages are its geographical location, being close to both the African and European continents and Arab countries, its Mediterranean climate which tends to be mild in summer and not too cold in winter.

Perhaps the migration factor is one of the advantages of real estate investment in the country, as the number of immigrants to it is steadily increasing, which generally leads to the growth of the real estate market and the tourism sector alike.

Spain also has comprehensive infrastructure for cities throughout the country.

Perhaps the feature that investors prefer is obtaining the golden residency and citizenship in Spain through property purchase and thus obtaining a Schengen passport.

What are the conditions for real estate investment in Spain for foreigners?

There is a special investment program for real estate investment that has been in place for a decade in Spain, and this program has conditions which we clarify as follows:

• The investor must be at least eighteen years old.
• He must not suffer from psychological or mental illnesses that affect the soundness of his investment dealings.
• His criminal record must be free of misdemeanors or felonies.
• He must successfully pass the security verification test.
• He must prove the source of investment funds.
• If the purpose of real estate investment is obtaining a real estate residence permit he must invest at least 500,000 euros.

Does Spain grant residency by purchasing property?

A foreign investor can obtain a real estate residence permit in Spain provided he owns a property worth at least 500,000 euros. The residence permit is issued for one year and can be renewed provided the property remains in the applicant's name.

Average property prices in Spain

Many factors contribute to determining the price of a property. Each area has its own set of features, the location of the project, the size of the apartment, its orientation, room distribution, interior and exterior finishing, and services associated with each project. All these affect property prices, whether up or down.

Comparison of real estate investment in Spain and Turkey

If we want to make a comparison between real estate investment in Spain and its counterpart in Turkey, we can identify distinguishing factors between the two countries, the most important of which are:

1. Price

Property prices between Turkey and Spain vary depending on the characteristics and location of each project. However, if we consider the real estate residence permit as a means of comparison, then a real estate residence permit in Turkey can be obtained by purchasing a property worth $75,000 in Istanbul and some other main provinces, and $50,000 in other provinces. In Spain, a minimum of 500,000 euros is required to obtain it.

2. Ease of procedures and conditions for foreigners

To obtain a real estate residence permit in Spain through property purchase, there are conditions related to age, physical health, a clean criminal record, and passing the security test imposed by the state. In Turkey, there are no such requirements. All that is needed is to choose the project, provided the property is not close to restricted areas such as security or military zones.

3. Residency and citizenship advantages

It is true that obtaining a real estate residence permit in Spain guarantees the holder and his family the right to education and allows travel to EU countries without a visa. However, as mentioned in the previous paragraph, a real estate residence permit in Spain can only be obtained with a minimum of half a million euros, while in Turkey the minimum value does not exceed $75,000. Citizenship is granted to investors who own property worth 500,000 euros in Spain, while in Turkey you can apply for citizenship by real estate investment in Turkey with $400,000. The holder of a real estate residence permit in Turkey also enjoys the following benefits:

• The property owner and his family are entitled to all residency rights in Turkey, and it allows you to enter Turkey without visas or prior security approvals.
• Open a bank account in one of the Turkish banks and enjoy banking freedom, receiving and sending money.
• The real estate residence permit is stronger than the tourist one in terms of renewability and the granted duration.
• The possibility to apply to the embassies of other countries from within Turkey to obtain their visas.
• Register in Turkish schools and universities.
• The right to own a private car in Turkey and apply for a Turkish driving license.
• The opportunity to obtain health insurance in Turkish hospitals.
• Holders of the real estate residence permit can apply for Turkish citizenship if the value of their real estate assets reaches $400,000, under specific conditions.

4. Returns and investment value

Regarding profitability and investment value, Turkey achieved the highest sales of residential apartments in Europe with 1.5 million units sold, with the closest competitor being the United Kingdom with 1.3 million units. This means a thriving real estate market and satisfactory profit returns. In terms of investment value, Turkey also ranked first in Europe in terms of increase in investment value, with an average increase of about 60%, a significant difference from its competitors among countries with active real estate markets worldwide.

The best real estate investment opportunities in Turkey are offered by Imtilak Real Estate

For those looking for a leading real estate market and the best real estate investment opportunities, Imtilak Real Estate offers you its offers on various types of properties and accompanies you on field tours in many Turkish cities, to provide you with options that suit your aspirations and goals, within a package of services and suitable prices.

For more information or inquiries, contact Imtilak Real Estate, experts in real estate in Turkey.

Edited by: Imtilak Real Estate©