Should You Buy Off-Plan Property?

What is “off-plan” in the Turkish real estate market?

In Turkey, “off-plan” refers to properties sold during the construction phase — from the excavation stage to pre-finishing. In international practice, this is called off-plan. The buyer purchases an apartment or villa not in a finished building, but under a contract with the developer who commits to completing the project by a certain date. According to various estimates, more than half of all transactions involving foreigners in the Turkish market involve such properties.

The popularity of this scheme is simply explained: developers offer significant discounts and long-term interest-free instalments, while buyers hope to profit from the price increase after the building is completed. But is everything so rosy? Let’s find out.

Why off-plan attracts investors: the main advantages

Price 20–30% below market

This is the strongest argument. An apartment bought at the excavation stage costs on average 20–30% less than a comparable finished property. The developer needs funds for construction and is willing to share future profit with early buyers. By the time the building is completed, the market price per square metre usually rises – especially if the project is in a sought-after area of Antalya, Alanya, Mersin or Istanbul.

Interest-free instalment plan until completion

Turkish developers actively offer instalment plans without overpayments: a down payment of 30–50%, with the remainder paid in monthly instalments until key handover. A typical schedule stretches over 12–24 months. For comparison, mortgages from Turkish banks remain hard to obtain for foreigners or come with high interest rates, so a developer’s instalment plan is practically the only way to spread the financial burden.

Freedom of choice and brand new finishing

Buying at an early stage allows you to choose not only the floor and view, but also the layout. In some projects, the buyer can influence the finishing: materials, colour scheme, socket placement. Moreover, you get brand new housing where no one has lived before – so you won’t have to invest in redoing someone else’s renovation.

Potential for obtaining citizenship

If the value of the purchased off-plan property exceeds $400,000, the buyer is entitled to apply for Turkish citizenship under the investment program. The main condition is that at the time of applying the property is registered in ownership (TAPU obtained) and its cadastral value meets the threshold.

The downside: risks and pitfalls

Construction delays – the main scourge of the market

According to market participants, up to 9 out of 10 projects in the economy and mid-range segments face delayed handovers. Reasons are typical: rising construction material prices, labour shortages, high inflation, financing problems at the developer. A promised 12 months easily turns into 18 or 24. For an investor counting on a quick resale or rental, such a delay means frozen capital and lost profit.

Risk of developer bankruptcy

The Turkish construction market is highly competitive and sensitive to economic shocks. During crises, small and medium-sized developers often leave the market, leaving behind unfinished buildings and defrauded buyers. Getting money back through the courts is a long and unpredictable process for a foreigner, so choosing a developer with a multi-year track record and dozens of completed projects is not a whim but a necessity.

Lack of İSKAN (certificate of occupancy)

İSKAN is the document confirming that the building has been constructed in accordance with the project and is fit for habitation. Without it, you cannot legally connect water and electricity in your name, obtain permanent residence permit or rent out the apartment. Worse still: if the developer fails to obtain İSKAN within five years after completion, the municipality may demand demolition of the building. Therefore, the presence of İSKAN is a mandatory verification point.

Currency swings and hidden payments

Prices in contracts are often fixed in euros or dollars, but some payments may be made in Turkish lira. In the event of a sharp lira devaluation (not uncommon in Turkey), the payment schedule can change to the buyer’s disadvantage. Special attention should be paid to additional costs: VAT (KDV), which for foreigners ranges from 1% to 20% depending on the property’s status, as well as annual property tax and mandatory communal fees – aidat.

How to reduce risks: practical recommendations

1. Check the developer’s license and portfolio. Every construction company in Turkey must have an official license. Study its history: how many projects have been completed, any delays, reputation among local buyers. Don’t be lazy to visit the developer’s already completed properties and talk to residents.
2. Hire an independent lawyer. Turkish legislation provides certain protections for the buyer, but only if the contract is properly drafted. The lawyer will check the contract for penalty clauses for missed deadlines, termination and refund conditions, and the legality of the sales scheme.
3. Ensure TAPU is present and monitor İSKAN. TAPU (title deed) is your main document. With an off-plan purchase, it may not be issued immediately, but the contract must clearly state when and under what conditions you will receive it. After the building is completed, immediately check the İSKAN status.
4. Build in a time buffer. If the developer promises to complete in a year, realistically count on one and a half or two. This will protect you from financial gaps and false expectations.
5. Study the area and infrastructure. It happens that a project looks perfect on paper, but around it – wasteland with no roads, schools or shops. The property’s liquidity directly depends on the location: proximity to the beach, transport links and social infrastructure are critically important.

Who is off-plan purchase suitable for, and who is not

Buying property under construction in Turkey is essentially an investment strategy with higher return potential and a commensurate level of risk. It is justified for those who:

• have free capital and are ready to freeze it for 1–3 years;
• are targeting long-term value growth, not quick profit;
• are willing to spend time on thorough developer checks and legal support;
• buy housing for subsequent resale or rental after the project is completed.

For those looking for a property “here and now” – for immediate relocation, obtaining a residence permit or a stable rental income from the first month – it is wiser to look at ready-made properties with completed İSKAN and TAPU. Saving 20–30% is not worth it if you risk ending up without an apartment and without money.

Conclusion: a balanced approach solves everything

Off-plan in Turkey is neither an adventure nor a guaranteed golden ticket. It is a working tool for a savvy investor who understands the rules of the game. The key success factors are: a reliable developer, a legally sound contract, a financial cushion for delays, and a sober assessment of the location. If all four components are in place, buying at the construction stage can yield 20–40% profit by the time the building is handed over. If even one raises doubts, it may be wise to either choose another property or wait for its completion and pay the market price for peace of mind.