What is the payback period for real estate in Turkey in 2023?

Perhaps you have already heard about the growing popularity of Turkey among foreign investors who are buying property in this country. And it’s not surprising, as Turkey offers many advantages for investors, including attractive property prices, beautiful beaches, rich culture and history, as well as stable economic growth.

One of the key factors that attracts investors is the payback period of the property. Previously, this period was about 25 years, but now it has been reduced to 20 years. Property is a refuge from high inflation and devaluation of Turkey’s national currency. This means that investors can expect to recoup their investments within 20 years, thanks to the rapid growth of rental payments.

Payback period of real estate in Turkey in 2023

Average payback period of property in Turkey in different regions

data is up to date for 2023

RegionPayback period (in years)
Average payback period for residential real estate in Turkey20 years

However, it is worth noting that these figures are average values, and the payback period may vary in different provinces of Turkey. For example, in Ankara, the payback period is 17 years, while in Mugla, known for its expensive resorts, this period has been reduced to 19 years (previously the payback period in this region was about 27-30 years). In Antalya, Gaziantep, and Tekirdag, the payback period is 20 years, and in Bursa, Erzurum, Kocaeli, and Sakarya, it is 21 years. In Kayseri and Van, the payback period is 22 years, and in Adana and Sanliurfa, it is 24 years.

These figures apply to the situation when the property is rented out on a long-term basis, with an annual contract renewal. However, if the property is rented out on a short-term basis, for example, on a monthly, weekly, or daily basis, the payback period is reduced even faster. This is because short-term rental rates are significantly higher, allowing investors to earn more income in a shorter period of time. The maximum profit from daily rentals is generated during the resort season when demand increases several times.

Thus, the payback period of property in Turkey is decreasing in 2023, making this country even more attractive to investors. If you are considering investing in real estate, Turkey can be an excellent option, especially if you are looking for high returns and investment stability.

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