Off-plan real estate in Istanbul

What is Off-plan at the presale stage?

This is the sale of apartments in the project even before the start of sales. At this moment, the developer does not yet have a TAPU (title), the kat irtifakı easement has not been issued, and there is no iskan. Only project documentation.

In many cases, the layout is not yet ready and the sales department is not formed. There is an idea, a land plot, an architectural project and the lowest prices.

These prices, as a rule, are not widely advertised, and apartments are sold “between their own”.

Of course, it is not profitable for the developer to sell apartments at this stage, because the profit is minimal, but the money to start construction and launch all processes is necessary for the project to be self-sustaining.

As a rule, apartments from the developer are sold at this stage, while landlords hold onto their apartments until a more favorable moment arrives in order to earn more money.

This is due to the fact that landlords invest in the project with a land plot, and in fact, they no longer bear expenses, while the Developer spends the maximum amount of his own funds at the initial stage, so he needs to create a cash flow.

Given the fact that the prices are too low, the developer puts up limited stock for sale, not the best layout options.

As we remember, the stage of the lowest prices is associated with the greatest risks if something goes wrong, therefore, an investor entering an off plan must understand all the risks associated with this.

At this stage, a notary agreement is concluded with the investor, because due to the lack of TAPU, the ownership cannot be formalized.

What does it threaten?

In fact, despite the fact that you have concluded a notarial agreement, the right of ownership has not yet arisen, so it is too early to call yourself full owners.

When the developer receives Kat İrtifakı, he receives a title for the project, which must subsequently be transferred to you.

Until the title is rewritten, the developer can freely dispose of your property, incl. pledge it for credit obligations.

Therefore, I always recommend that you immediately draw up a title in your name if it has already been received.

In situations where an investor plans to obtain citizenship under the Citizenship by Investment program, it is possible to purchase real estate at the pre-sale stage, but the terms may be delayed due to the need to obtain documents for the construction site.