Installment plans from developers in Turkey: how they work and what to look for

In 2026, installment plans for apartments in Turkey are an interest-free agreement with the developer for payment in installments without bank involvement: a down payment of 10 to 50%, for a term of 12 to 36 months, with the price fixed in euros or dollars. With the Turkish Central Bank's (TCMB) key rate at 37%, mortgages cost 35-40% per annum and are almost unaffordable for foreigners. Therefore, installment plans remain the main tool for purchasing a home in Alanya in installments. The title deed (TAPU) is transferred to the buyer upon full payment or with an encumbrance in favor of the developer.

New Level Group, a developer in Alanya, offers 0% annual interest installments to its clients, with no income or credit history verification, and no residence permit required. This article explains how it works in detail.

Why installment plan and not mortgage?

The key rate of 37% and the real cost of a bank loan

TCMB is maintaining its key rate at 37% per annum (July 2026 – the fourth consecutive rate); mortgages are following the regulator's lead – in 2025–2026, loans will cost 35–40% per annum and higher. This means that a 10–15-year mortgage at 40% makes an apartment two to three times more expensive.

Why it's practically impossible for a foreigner to get a mortgage in Turkey

Banks require verified income, often a valid residence permit, and offer no more than 50-70% of the appraised value, plus fees, appraisal, and insurance. In practice, foreigners rarely receive approval: mortgages are not so much expensive as they are practically unaffordable.

Developer installment plan: 0%, no bank, no income verification

Interest-free installment plans in Turkey are a buyer-construction company agreement, with no bank involvement. 0% annual interest, 10-50% down payment, 12-36 month terms, and a flexible payment schedule—monthly, quarterly, or in installments.

How does the developer's installment plan work?

These are approximate values: the final terms of each project are specified in the contract. The standard for foreign buyers is to fix the price in euros or dollars.

Down payment for an apartment in Turkey: from 10 to 50% – what determines the amount

The size of the first payment and the terms of the installment plan are determined by five factors:

• Construction stage. During the foundation pit and early sales phase, developers reduce the down payment to 10–20% to attract investors and raise initial capital. For nearly finished and completed buildings, the down payment is typically higher – 40–50%.

• Installment period. The longer the repayment period (3–5 years instead of 12–24 months), the larger the down payment.

• Pricing and discounts. A 50% down payment instead of 20% often results in a discount on the total price of the apartment or securing more favorable terms.

• The scale and reliability of the developer. Large construction companies offer more flexible terms; smaller ones are insured by a large down payment.

• Currency and price fixing. The terms depend on whether the remaining debt is pegged to a hard currency (euro/dollar) or repaid in lira, adjusted for inflation expectations.

Payment period and schedule: 12–36 months

The standard period in the Alanya market is 12–36 months, with longer terms possible for premium properties. Dates, amounts, and currencies are specified in the contract, and experienced developers are accommodating to buyers and tailoring a customized schedule.

What is included in the price and what is paid separately?

The contract price is the apartment and usually the final finishing. Transaction costs are included separately: title transfer tax (tapu harcı, 4% for the buyer), notary fees, translator fees, government fees, and mandatory earthquake insurance (DASK).

Currency peg

EUR/USD fixing is the standard for foreign buyers. The price and schedule are fixed in euros or dollars, and payment can be made in lira at the Central Bank's exchange rate on the day of payment, but the contract amount remains unchanged. The budget is projected for years to come and is not affected by the lira's devaluation. Most developers in Alanya, including New Level Group, sell in this way—all company installments are fixed in euros.

Some companies offer prices in lira, with the balance indexed to the TÜFE Consumer Price Index. With annual inflation at 31.75% (July 2026, TÜİK), this turns the installment plan into a loan with an annual interest rate of approximately 30%. This model is only reasonable if you earn in lira or are confident in the currency's appreciation.

Installments during the construction stage and after delivery

At construction sites, the schedule is linked to stages: foundation, frame, façade and utilities, finishing, and key delivery. For the developer, this means financing the construction, while for the buyer, it means payment plans for the entire construction cycle (1.5–2.5 years). The legality of the construction is monitored by the mandatory supervision agency Yapı Denetim, and upon completion, the project receives an iskan (operating permit).

Finished apartments with iskan and kat mülkiyeti are less commonly offered with installment plans: a 40-60% down payment, with a term of 6-24 months, sometimes longer. However, the apartment can be rented out immediately—the income covers part of the payments, and the property is more attractive for a residence permit: the TAPU is issued immediately after the transaction, without waiting for completion and occupancy.

Legal protection for the buyer

The key document when purchasing with installments is a notarized sales contract (Satış Vaadi Sözleşmesi): the developer undertakes to transfer ownership upon full payment. The document is legally binding when registered with the General Directorate of Cadastre and Land Registry of Turkey (Tapu ve Kadastro Genel Müdürlüğü): a notation (şerh) is added to the registry, blocking the sale of the apartment to a third party. The contract does not make you the owner—only the TAPU does—but it does protect your payments.

Eight points of a developer's installment agreement in Turkey that you should check:

1. A payment schedule with exact dates and amounts for each installment.

2. Fixation currency.

3. Accepted payment methods.

4. Penalties for late payment by the buyer: the amount of the penalty, consequences in case of systematic delay.

5. Penalties for delays in construction by the developer: compensation, right of termination, fine for each month of delay.

6. The moment of transfer of TAPU and the procedure for removing the mortgage encumbrance after full payment.

7. Terms of termination and refund: terms, deductions, procedure for returning amounts already paid.

8. Construction quality guarantee: warranty periods, procedure for eliminating defects after occupancy.

Before receiving the iskan, the buyer receives a registered share in the land with the right to the future apartment – kat irtifakı. After the delivery and receipt of the iskan, this is converted into kat mülkiyeti – the right of ownership to a specific apartment (bağımsız bölüm).

TAPU with installment plan and encumbrance

There are two practices. First, the TAPU is transferred immediately with an encumbrance (mortgage) for the remaining amount, and the entry is removed from the Cadastre after the final payment. Second, the TAPU is transferred only after 100% payment. In both cases, payments are secured by a registered notarized deed.

What to do if the developer delays delivery

The contract must detail the completion date and penalties for late delivery. Before purchasing, it's essential to verify the developer's license, registration with the Chamber of Commerce and Industry, ownership of the land plot, and the apartment's title deed. If delivery is delayed, a notarized claim can be filed, followed by a lawsuit: a registered contract grants creditor status, protected by the registry.

Installment plan and eligibility for a residence permit or citizenship

A residence permit for real estate is issued based on a TAPU (tax deed of purchase) with a cadastral value of at least $200,000. Until the apartment has been paid for and the title has been transferred to you, you cannot apply for one based on this basis—you need a TAPU, not a contract. Until then, a tourist residence permit is available.

The citizenship program requires a minimum $400,000 real estate purchase, full payment, and compliance with the following formalities: funds are transferred from abroad through a Turkish bank, which issues a currency conversion certificate (DAB, or Döviz Alım Belgesi); the tapu (tax deed) must set the price at a level no lower than the Central Bank's exchange rate on the day of the transaction; and the property must not be sold for three years. Installment plans are only compatible with the program if the transaction is fully closed by the application date and the tapu (tax deed) is transferred free of encumbrances.

Five mistakes when buying on installment

• Choose a project based solely on the minimum down payment, without comparing the full cost: a developer with a small down payment may include compensation for a long payment plan in the price per square meter.

• Do not specify the currency of the loan: a 36-month installment plan in lira with inflation at 30% means a significant increase in real prices.

• Don't check the developer's reputation: completed projects with iskan, registration with the Chamber of Commerce, reviews from buyers of previous projects.

• Don't include penalties for late delivery in the contract: without specified penalties, the buyer has no leverage when it comes to delays.

• Buying an apartment in Turkey with installments without planning an exit strategy: The apartment's liquidity upon resale depends on the neighborhood, floor, and complex infrastructure—these factors are more important than the size of the down payment.

If you need high-quality real estate in Alanya with installments and legal guarantees, contact New Level Group . We build our own residential complexes, from resort apartments to properties suitable for residence permits and citizenship. We offer installment plans with favorable terms, which are specified in the contract upfront: a fixed price in euros, a clear payment schedule, and a TAPU upon full payment. Submit a request, and we will find an apartment in our complexes that suits your budget and needs.