Installment plans for real estate in Istanbul: a complete buyer’s guide
Updated: March 2026
Developer installment plans are one of the most popular ways for foreign investors to purchase real estate in Istanbul. The Turkish market offers conditions that are virtually unavailable in Europe: interest-free installment plans for 1–3 years, a down payment starting from 25–30%, and the opportunity to enter a new development at the excavation stage. At the same time, the price is fixed at the moment the contract is signed, and during the construction period the property itself often increases in value by 20–40%.
In this article, we will examine how installment plans work in Istanbul, which terms are genuine and which are marketing exaggerations, and what must be verified in the contract before signing it.
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What is a developer installment plan in Türkiye
A developer installment plan (in Turkish — taksitli satış or peşinatsız satış) is a financing structure under which the buyer pays the cost of the property in parts over an agreed period rather than in a single lump sum. The developer acts as the creditor: it does not require bank approval, does not check credit history, and does not request proof of income. This is precisely what makes installment plans especially attractive for foreign buyers for whom Turkish mortgage financing is unavailable or disadvantageous.
The key feature of the Turkish market is that installment plans are generally interest-free. Developers earn not from a financial margin, but from sales volume and the early attraction of capital for construction. In return, they offer a 10–20% discount to buyers who are prepared to pay the full price immediately.
Installment plans are most commonly available for primary market properties — new developments under construction or newly completed residential complexes. In the secondary market, installment plans are much less common and, as a rule, involve a shorter term and a higher down payment.
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Two types of financing: developer installment plans and bank mortgages
Before considering specific conditions, it is important to understand the difference between two fundamentally different financial instruments that are often confused.
| Parameter | Developer installment plan | Bank mortgage in Türkiye |
| Interest rate | 0% (interest-free) | 25–35% per annum in ₺ (2025–2026) |
| Term | 1–3 years | Up to 20 years |
| Down payment | 25–50% | 20–30% |
| Creditworthiness assessment | Not required | Mandatory |
| Availability for foreigners | Without restrictions | Limited (a residence permit or TAPU is required) |
| TAPU upon completion | After full payment | Immediately (subject to the bank’s lien) |
| Currency | USD, EUR, or ₺ | Predominantly ₺ |
| Early repayment | Without penalties | Fees may apply |
Bank mortgage financing in Türkiye in 2025–2026 remains extremely expensive due to the high policy rate of the Central Bank. Mortgage rates in Turkish lira reach 25–35% per annum, making them economically impractical for most buyers. For this reason, developer installment plans have become the primary financing instrument for purchasing real estate in Istanbul.
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Typical installment plan terms in Istanbul
Installment plan terms vary substantially depending on the developer, the project, the district, and the stage of construction. Nevertheless, the market has developed certain standards that make it possible to navigate the choice of property.
Down payment
The standard down payment is 30–50% of the property price. Some developers offer entry from 25%, especially at early stages of construction, when it is important for them to attract capital. Down payments below 20% are extremely rare and, as a rule, are accompanied by additional conditions or a higher base price.
Installment term
The typical installment term is 12 to 36 months. Longer terms (48–60 months) are found in large premium-class projects or where special conditions apply. It is important to understand that the longer the installment term, the higher the base price of the property, because the developer factors the financing cost into it.
Payment schedule
Payments may be made monthly or quarterly. Some developers offer a flexible schedule in which payments are linked to construction milestones: a certain percentage upon pouring the foundation, upon completion of the structural frame, and upon completion of finishing works. Such a structure reduces the buyer’s risk, because the payments are directly linked to construction progress.
Price fixation
One of the key arguments in favor of an installment plan is price fixation at the moment of signing the contract. Even if the market value of the property rises during construction, the buyer pays the originally agreed price. In the Istanbul market, where new-build prices in 2022–2025 were rising by 30–60% per year, this gave buyers a substantial advantage.
Early repayment
Early repayment of the installment plan is generally possible without penalties. Moreover, many developers offer an additional discount for early settlement of the outstanding balance.
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*RealEast does not guarantee the issuance of a residence permit or citizenship, and does not guarantee the profitability of real estate investments. Decisions regarding the granting of residence permits and citizenship are made exclusively by the competent government authorities of the respective country. Any information regarding the possibility of obtaining a legal status or the investment potential of properties is provided for informational purposes only and does not constitute a guarantee of results.
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Step-by-step procedure for execution
The procedure for purchasing real estate in installments in Istanbul includes several consecutive stages, each of which has legal significance.
Step 1. Selection of the property and preliminary agreement of terms. At this stage, the buyer selects a specific apartment or unit, agrees with the developer’s manager on the price, the size of the down payment, the term, and the installment schedule. All agreements must be documented in writing before any payments are made.
Step 2. Obtaining a tax number (Vergi Kimlik Numarası). A tax number is a mandatory requirement for any real estate transaction in Türkiye. It is issued by the tax office on the basis of a passport within a few hours. Without it, it is impossible either to open a bank account or to sign a sale and purchase agreement.
Step 3. Opening a bank account with a Turkish bank. A Turkish bank account is required to transfer funds to the developer. This requirement is connected with currency control rules: all real estate payments must pass through the Turkish banking system and be recorded in a DAB (Döviz Alım Belgesi — foreign exchange purchase certificate). Without a DAB, it is impossible to register the TAPU.
Step 4. Signing the preliminary sale and purchase agreement (Ön Satış Sözleşmesi). This is the key legal document that records all terms of the transaction: the full price of the property, the size of the down payment, the payment schedule, penalties, construction deadlines, and the conditions for transfer of the TAPU. The agreement is signed either before a notary or directly at the developer’s office.
Step 5. Payment of the down payment. The first payment is made at the moment of signing the agreement or within a few days thereafter. The transfer is made through a bank with mandatory issuance of the DAB.
Step 6. Regular scheduled payments. Subsequent payments are made in accordance with the agreed schedule. It is important to comply with the deadlines: most agreements provide for penalties for late payment — generally 0.1–0.3% of the overdue payment amount for each day of delay.
Step 7. Receipt of the TAPU (title deed). In most projects, the TAPU is transferred to the buyer after the installment plan has been fully paid. In some cases, it is possible to receive the TAPU earlier — where there is a bank guarantee or upon reaching a certain payment threshold (generally 70–80% of the total amount).
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Special conditions for foreign buyers
Foreign nationals may purchase real estate in Türkiye on installments on the same terms as Turkish citizens; however, a number of additional requirements must be taken into account in advance.
Residence permit through the purchase of real estate. To obtain a tourist residence permit on the basis of ownership, the value of the property must be at least USD 200,000 (at the official exchange rate of the Central Bank of Türkiye on the valuation date). When purchasing through an installment plan, the right to apply for a residence permit arises from the moment the agreement is registered, and not after full payment.
Turkish citizenship through investment. To obtain citizenship through the purchase of real estate, the value of the property must be at least USD 400,000, and the property may not be sold for 3 years from the date of receipt of the TAPU [2]. It is important to note that, when purchasing through an installment plan, the citizenship application may be filed only after full payment and receipt of the TAPU, because it is the TAPU that constitutes proof of ownership.
Mandatory GEDAŞ valuation. To confirm the market value of the property when applying for a residence permit or citizenship, an independent valuation by an accredited valuer (GEDAŞ) is required. The cost of the valuation is approximately 5,000–8,000 ₺.
Payment requirements. All payments must pass through a Turkish bank account with issuance of the DAB. Cash payments or transfers made outside the banking system are not accepted when applying for a residence permit or citizenship.
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Additional costs when purchasing in installments
When planning the budget, it is necessary to take into account costs in excess of the price of the property itself. Many buyers underestimate this category of expense, which leads to unpleasant surprises at the final stages of the transaction.
| Expense item | Amount | Note |
| Title transfer tax (Tapu Harcı) | 4% of the cadastral value | Paid upon receipt of the TAPU |
| Notarization of the agreement | 3,000–6,000 ₺ | Where notarized execution is used |
| Interpreter services | 3,000–4,000 ₺ | Mandatory upon receipt of the TAPU |
| GEDAŞ valuation | 5,000–8,000 ₺ | For residence permit/citizenship |
| Registration fee | 5,000–10,000 ₺ | Depends on the developer |
| Legal services | USD 1,500–3,000 | Recommended for foreigners |
| Insurance (DASK) | 500–2,000 ₺/year | Mandatory earthquake insurance |
| Aidat (complex maintenance fee) | 500–3,000 ₺/month | Depends on the class of the complex |
In total, the additional costs when purchasing in installments generally amount to 5–8% of the property price. This amount must be available in cash in addition to the installment amount itself.
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Risks and how to minimize them
A developer installment plan is not a banking product with state guarantees. The buyer assumes a number of risks, which it is important to understand in advance.
Risk 1. Construction delay
This is the most common risk in the Turkish market. Developers often postpone handover by 6–18 months. The agreement must обязательно contain penalties for delay: as a rule, this is 0.1–0.3% of the property price for each month of delay. If such a clause is absent from the contract, this is a serious cause for concern.
Risk 2. Bankruptcy or project suspension
The Turkish market has seen cases where developers declared bankruptcy in the middle of construction. This risk can be minimized in several ways: by choosing developers with a history of successfully completed projects, verifying the existence of construction permits (İnşaat Ruhsatı), and examining the company’s financial standing through public registries.
Risk 3. Unilateral change of contract terms
Some developers attempt to change contract terms unilaterally — for example, by recalculating the price in another currency or adding supplementary charges. Protection against this risk lies in a clear and unambiguous description of all conditions in the contract, preferably with notarization.
Risk 4. Poor construction quality
Construction quality in Türkiye varies substantially. This is particularly important in the context of seismic activity: after the 2023 earthquake, the requirements for seismic resistance of buildings were tightened. Before purchasing, it is recommended to verify the existence of an İskan (occupancy permit) for already completed properties or to study the developer’s reputation based on previous projects.
Risk 5. Failure by the buyer to comply with the payment schedule
If the buyer is unable to make payments on time, the consequences depend on the terms of the agreement. As a rule, penalties for delay are provided for. In the event of repeated failure to comply with the schedule, the developer is entitled to terminate the agreement and retain part of the amounts already paid (usually 10–20% of the amount paid). Before signing the agreement, it is important to realistically assess your financial capacity for the entire term of the installment plan.
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Comparison: installment plan, mortgage, or full payment
The choice of payment method depends on the buyer’s financial situation, investment objectives, and time horizon.
| Criterion | Developer installment plan | Bank mortgage | Full payment |
| Overpayment | 0% | 25–35% per annum in ₺ | — |
| Term | 1–3 years | Up to 20 years | — |
| Availability for foreigners | High | Limited | High |
| Discount | No | No | 10–20% |
| TAPU | After full payment | Immediately | Immediately |
| Risk of losing the property | In the event of schedule breach | In the event of mortgage default | Minimal |
| Documentation requirements | Minimal | Expanded | Minimal |
| Best suited for | Investors with partial capital | Long-term financing | Those who want a discount and immediate TAPU |
An installment plan is optimal for buyers who have 30–50% of the property price and stable income for monthly payments, but do not have the full amount in one sum. It is also a good instrument for investors expecting the value of the property to increase during construction.
A bank mortgage under current conditions (2025–2026) is economically disadvantageous because of the high rates. It makes sense only for buyers who require a long repayment period and who plan to live in Türkiye and receive income in lira.
Full payment is advantageous for those who want to obtain the maximum discount (10–20%), register the TAPU immediately, and avoid any risks connected with an installment plan.
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Checklist for reviewing the contract
Before signing an installment agreement, it is necessary to ensure that the following points are clearly stated.
The property and the parties to the agreement. A full description of the property (address, floor, apartment number, area, layout), full details of the developer (legal entity name, tax number, address), and the buyer’s information.
Financial terms. The full property price in a fixed currency, the amount of the down payment, the exact schedule of all payments with dates and amounts, early repayment terms, and penalties for late payment by the buyer.
Construction and handover. The exact construction completion date, penalties for delayed delivery, and the conditions for termination of the agreement at the initiative of the buyer in the event of substantial delay.
Transfer of ownership. The conditions and deadlines for transfer of the TAPU, the requirements as to the condition of the property at the moment of transfer, and the procedure for acceptance of the property and recording of defects.
Warranties. The warranty period for construction works (by law — at least 5 years for structural elements) and the procedure for remedying defects.
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Frequently asked questions
No. Developers do not require proof of income, employment certificates, or bank statements. A passport and the initial down payment are sufficient.
Yes, but it is less common. Some developers offer installment plans for completed properties; however, the term is usually shorter (6–12 months) and the down payment higher (40–60%). Interest-free installments for completed properties are rare.
Yes. To obtain a tourist residence permit on the basis of a property purchase, a notarized preliminary sale and purchase agreement is sufficient. The TAPU is not a mandatory requirement for a residence permit, unlike citizenship by investment, where the TAPU is obligatory.
Technically, it is difficult because the title deed (TAPU) has not yet been issued in the buyer’s name. However, in practice, it is possible to assign the contractual rights (cession) with the developer’s consent. The conditions of such assignment must be stipulated in the contract.
Most developers in Istanbul fix the price in US dollars or euros, while payments are accepted in any currency at the exchange rate on the payment date. Some projects operate in Turkish lira, which is advantageous when the lira strengthens but carries an exchange rate risk if it weakens.
It depends on the terms of the contract. As a rule, penalties are charged for late payments. In case of prolonged delay, the developer has the right to terminate the contract and retain part of the amounts already paid. If you anticipate financial difficulties, it is better to contact the developer in advance with a request for restructuring — most companies are willing to meet halfway.
DAB (Döviz Alım Belgesi) is a foreign exchange purchase certificate issued by a Turkish bank when foreign currency is converted into lira to pay for real estate. Without a DAB, it is impossible to issue the TAPU. This is why all payments must go through a Turkish bank account.
A developer installment plan is a genuine and advantageous instrument for purchasing real estate in Istanbul, provided that it is approached consciously and with proper understanding. Interest-free terms, a fixed price, and minimal documentation requirements make this instrument accessible to a broad range of foreign buyers. At the same time, installment plans entail risks connected with the developer’s reliability and the construction process, which must be taken into account when choosing a property.
The main rule is this: choose a developer with a history of successfully completed projects, read the contract carefully, and do not hesitate to ask questions before signing. If you are uncertain about any clause, engage an independent lawyer. The cost of legal support (USD 1,500–3,000) is incomparable to the potential losses in a problematic transaction.