Types of investment in Turkish property: everything you need to know

Turkey is an ideal country for life, study, work, business. Tourists love this country. To become a part of this country, you have the opportunity to obtain citizenship by investing in real estate. If you plan to buy a Turkey home then this article is for you. We will have a look upon various investment reasons down below.

Short-term investments (purchase at the stage of construction and sale at the end)

Almost 90% of all residential property in Turkey is bought at the beginning of construction work, since apartments at the zero stage are really cheap. Along with the growth of the floors of the residential complex, the cost of the purchased apartments also increases. Some investors buy housing at the excavation stage in order to resell them shortly before the completion of construction or immediately after the house is put into operation. Such short-term investments in Turkish housing allow you to receive income literally immediately, since the cost of sq. m in modern residential complexes after the completion of construction increases by approximately 30-40%. It is worth considering that the properties under construction can be bought under profitable programs – in installments or an interest-free loan from the developer, which means that the benefit of such a funding becomes more than obvious.

If you decide to use this direction of investing in construction in Turkey, you have two options of generating income: 

  • wait for the construction to be completed and immediately sell your apartment, 
  • or wait until its value increases even more, and in the meantime rent out apartments and receive, albeit small , but stable dividends. 

However, with regard to the second option, it is important to foresee some nuances: for example, to choose housing as correctly as possible so that it has a constant demand from tenants, and also to buy properties with guaranteed rent. Both of these can be provided by a good broker agency.

The growth in housing prices differs in different regions of Turkey, and with the right choice, which is extremely difficult to do on your own due to ignorance of the specifics of the market, it can be about 50% per year. This once again shows the real benefits of investing in Turkish property under construction with subsequent resale.

Investments in commercial real estate (business or rental property)

Many investors from abroad consider investing in the purchase of commercial space in Turkey as one of the best ways to make a good profit. This applies to both the purchase of square meters for running your own business, and their leasing for offices, shops, restaurants, cafes.

Despite the fact that the majority of foreigners perceive the republic as a vacation spot or as a “second home”, many of them choose the state to conduct a profitable business. And this is real, since Turkish legislation in every possible way encourages foreign injections into the economy and the activities of entrepreneurs from abroad.

High ROI potential in commercial real estate and business lies in:

  • good economic growth performance in Turkey, which contributes to the continuous development of small and medium-sized businesses;
  • government support for the tourism industry;
  • a constant increase in the volume of construction of residential and commercial property, infrastructure facilities;
  • rising prices per square meter;
  • encouragement of investments from abroad and simple purchase of commercial properties on favorable terms.

Types of commercial property investments in Turkey:

  1. Funding of construction, after which it will be possible to use the area if you want to run your own business or for renting, reselling.
  2. Purchase of a ready-made housing if you want your own business activities, leasing or resale.
  3. Renting commercial property in order to evaluate in advance the effectiveness of such an asset using the example of running your own business.
  4. Purchase of a ready-made business (restaurant, hotel, shop, etc.).

Of course, all of the above methods have a number of risks and require careful assessment using the knowledge and experience of professionals.

Investments in large residential areas and complexes (become a partner, construction of a hotel or residential complex)

Investing in the construction of large residential complexes or hotels in Turkey is considered quite profitable is you are a foreign investor, however, it requires large capital investments on their part. Like any other funding, this type of business borders on certain risks and requires a truly competent and comprehensive approach to choosing a property.

Turkish real estate for large investors is concentrated in the resort regions of the country – Antalya, Alanya, Bodrum, Belek, Istanbul and others, where large residential areas and hotels are being built. As a rule, the cost of building land is relatively low, while development companies undertake not only the construction of the building, but also the laying of communications, landscaping, infrastructure construction (beaches, restaurants, cafes, sports clubs, etc.). Some developers cover these costs with fundings from foreign investors. Income can be about 50% per year.

Where is it better to invest money – in luxury or budget property

A profitable investment in the Turkish housing market is associated with many features. To begin with, we propose to understand what in Turkey belongs to real estate of the elite class, and which housing are considered budget.

Budget options are apartments, which one way or another will have a number of nuances related to the location, area, number of floors, condition of decoration, communications, distance from the sea, since these are the key characteristics in pricing. The cheaper is the apartment, the more features it has that affect the final cost. It is one thing if the buyer purchases a property for personal use – for example, vacations several times a year, and quite another – to buy a home as a profitable investment.

If you want to make a profitable investing in real estate, luxury housing located in resort regions and tourist centers is definitely the best option, since there is always interest from buyers and tenants in it, which means that such housings can always be resold profitably.

Real estate in Turkey

Turk.Estate offers qualified assistance in the field of buying and selling real estate. They solve the issues of buying and selling houses, apartments of any complexity and budget. Their specialists also provide assistance to investors in the selection and registration of real estate in Turkey.