The Turkish property market is a huge and ever-expanding industry that attracts a lot of offshore buyers. There are so many types of properties in this market. You can classify all of these properties into three main categories. These are:
What is an off-plan property?
The word “off-plan property” is used to describe a property that you can buy (or pay for) while it is still under construction.
This happens when the development is still being constructed and has not been completed yet. One of the primary differences between other properties and an off-plan development is the fact that the latter is not habitable.
Even when they purchase it, the buyer is not able to use it or move in because it is still not completed yet. They will have to wait until the end of the project to officially commission the property for use.
The price importance of off-plan properties
Most real estate investors in Turkey who fancy second homes usually invest in off-plan projects. This means that you are in no rush to move in as the property is not your first home. While the property is still being developed (the development phase), the developers usually market the properties to potential investors.
The properties are marketed at highly discounted prices – which are significantly lower than the usual market rates. In addition, the total cost of the other available properties in the project is increased at various stages of the project. This is done until the project reaches the estimated market values and gets completed. This additional price increase is secured due to the estimated growth of the market in one year.
Many Turkish real estate buyers, usually seriously consider the cost of the property. This means that an off-plan property which is still under construction will usually be offered at a lower cost in comparison to a ready-to-move-in property. With properties that are still under construction, buyers are exposed to numerous opportunities. While they may have to wait for a longer time, this is worth the price.
Off-plan properties are fancied because they tend to appreciate much faster. As the investor has paid a lower cost for the property, it is said to appreciate a lot higher. This means that as the construction advances, the price of the property increases all up to the stage that it is completed.
If you are buying a key-ready (completed) property, you will be expected to pay the total price of the asset. Then again, you will have to consider registry costs as well as various other charges accrued from buying a new home. When you buy any property that is still being constructed, you will pay a small fee of the usual registry cost. This is called a booking amount. In addition, there is payment flexibility when you buy off-plan properties as there is no need to buy using a bulk amount of money.
Offers and discounts
Off-plan properties come with lots of offers and discounts. However, this is not the case with key-ready properties. For completed properties, there are no special offers as you will need to pay the full cost of the building. Then again, this cost of the completed property can even increase due to the facilities therein or the details of the development. On the other hand, off-plan properties feature lots of available offers and discounts. Lastly, since buyers usually have multiple options, they can easily negotiate the final amount that they pay for the property.
More options to choose from
Many off-plan properties are built as apartments or commercial spaces. This means that as the property is still under construction, you have the freedom to choose or change options as long as they are available for purchase. Some developers may not permit this, but many off-plan projects allow buyers to switch apartments unless they are no longer available.