While Turkey and Greece are two very different countries, property buyers looking to buy houses in the eastern Mediterranean will notice that they have a lot of similarities such as:
- Long stretches of coastal areas, beaches, and seafronts
- A common climatic zone
- Similar food interests- from sticky pastries to kebabs (gyros in Greece)
- Identical orientation to tourism
When consolidated, these factors sum up to a substantial percentage of economies and financial stability of both countries. Therefore, it is often difficult for real estate investors to choose between the two nations and settle in one.
In this article, we have summarized some of the key differences and real estate market comparisons between Greece and Turkey.
Turkey, officially known as the Republic of Turkey, is situated at the crossroads of the Middle East, Caucasus, Balkans, and the eastern Mediterranean. It is amongst the largest countries of the region in terms of population and territory, with a land area greater than any other European states.
Turkey is surrounded by coastal regions and sea on the three sides. The Aegean in the west, the Mediterranean in the south, and the Black Sea in the north. The Marmara Sea in the northwestern side includes the Dardanelles Straits and Istanbul and is the territorial water of Turkey. Spanning European and Asian continents, it preoccupies some of the world’s most magnificent landscapes and cities such as Mount Ararat and white sandy beaches. Turkey is a stunningly beautiful country with a mixture of modern and medieval architecture.
Greece is known for its whitewashed villages, ancient ruins, Mediterranean cuisines, and beautiful beaches. Located in southeastern Europe, the country is divided into three geographical segments: the islands, the Peloponnese, the mainland and mountainous peninsula.
The scattered islands surround the Grecian peninsula, enclosing mesmerizing landscapes, cultural and historical places, and buzzing nightlives. The mainland has vast areas of forests, rugged mountains, and lakes and the longest coastline in Europe.
What are the differences between Greece and Turkey?
- Language is the first barrier between the two nations. The primary language is Greek in Greece and Turkish in Turkey. Fortunately, locals and a lot of tourists speak English apart from other foreign languages.
- Both countries use different currencies. This is where Greece possibly has an edge since it uses the euro, one of the most stable global currencies. Turkey, on the other hand, uses Turkish lira.
The prominent aspect of the lira as a currency is- the exchange rate makes Turkish properties cheap as compared to dollar or euro. That is a situation where investors have to decide whether the glass is half empty or half full!
Real estate market comparison between Greece and Turkey
According to the latest research, the price of the property in Greece per square meter is 77% higher as compared to Turkey. While everything depends on the real estate location, Turkey is comparatively less expensive.
The higher levels of real estate development have led to an increase in the availability of new properties in Turkey. Foreign investors find that an annual yield is significantly higher and falls between 5 to 7%.
The most preferred type of residence is 3+1 houses with a buying rate of 66%. Next are 2+1 and 4+1 flats with buying interest of 13% and 12% respectively.
In Turkey, the most populated area lies around the Bosphorus and 20% of the total population resides in Istanbul. In Anatolia, cities are scattered and small except for Ankara which is the Turkish capital.
The cost of residential and commercial properties are high in Greece and so is the cost of living. Most of the commodities including housing projects in Greece cost between one and a half to three times what you’d pay in Turkey.
Refurbished properties over 30 years old, up to 90 sq. metres, and in a good condition are most preferred by real estate buyers in Greece. Across the country, approximately 88% of the residential properties were sold including maisonettes/detached houses and apartments while commercial units and lands accounted for 7% and 5% respectively.
In Greece, a majority of the population lives in metropolitan Athens and the regions surrounding the mainland city. The remaining public lives in small cities and islands.
Property and Rental Price Comparison
|Rent Per Month||Turkey||Greece|
|Apartment in City Centre (Average rate per sq. metre)||Between 13-17 euros||Between 4-14 euros|
|Rate of Apartments in City Centre (Per Square Meter)||2821 euros||3619 euros|
|Rate of Apartments outside City Centre (Per Square Meter)||316 euros||493 euros|
|Average House Prices||Turkey||Greece|
|Average Rate of Houses in entire Country(Per Square Meter)||560 euros||670 euros|
Taxes on real estate in Greece and Turkey
When buying a property in Greece, a one-time tax of 3% is levied if the permission for construction was received before 2006. If the housing permit was issued after 2006, the tax is 24% of the total property’s value. If the property is cheaper than 120K euros, you need to pay 1% on registry along with a VAT of 23%.
In Turkey, an average payment of 4% of the cadastral value of housing is required including services such as registration, documentation, and more.
In both countries, it is mandatory to pay annual taxes on real estate. Turkish regulations are simple: for commercial units 0.2 to 0.4%, for land with construction permit of 0.3 to 0.6% and for residential properties, the tax is 0.1% to 0.2%. In Greece, the annual tax is calculated from the base price. It is from 2 to 16 euros per 1 sq. meter and depends on the location and age of the building. An additional municipal tax is also paid that ranges from 0.025 to 1%.
Rules for obtaining a residence permit in Greece and Turkey
Obtaining permanent residence in Turkey and resident permit in Greece is almost identical. Greece has a golden visa scheme that provides investors with access to EU residency and eventually, an EU passport. Investing in a property worth 250,000 euros (296,000 USD) offers a 5-years renewable residence permit. It can be later applied for permanent citizenship after seven years of residence. The family, however, is prohibited from working in Greece, however, the property owner can run a business.
Turkey, on the other hand, offers a one-year residence permit on the purchase of any property. But it also provides a golden visa scheme with fast-tracked citizenship in just a few months on buying real estate worth 250,000 USD.
Real estate opportunities are similar in both the countries, however, Turkey has an edge over Greece in terms of cost of living, real estate expansion and lifestyle opportunities. While the citizenship rules are simplified and hassle-free in Turkey, Greece still gives a hard time to foreign investors.
If you fancy living a metropolitan and serene lifestyle, all in one place, Turkey fits the bill to the T. For finding pre-approved projects for Turkish citizenship, consult our seasoned real estate experts at Extra Property.