Recently, there has been a great demand for real estate investment in Turkey, by foreign investors and the Turks themselves, as a result of the large government facilities provided by the state to investors and powers, such as obtaining Turkish citizenship in exchange for buying a property in the amount of 400 thousand dollars, or real estate residence in exchange for buying a property in the amount of 75 thousand dollar.
And the fact that the Turkish government has determined an annual fixed rate of increase in real estate investment returns, in a way that guarantees the investor’s profit on an annual and permanent basis, and given that real estate is a fixed asset that is not affected by the economic conditions and the conditions prevailing in the country, such as what happened during the Corona pandemic period and the rest of the other sectors were affected, this The effect is related to a certain period, and after the demise of this effect, the real estate returns its value, and recently the real estate witnessed a remarkable increase in Turkey.
Also, the value of real estate in Turkey was not affected during the Corona pandemic and the closure policy, as happened in the countries of Europe and the Arab countries, due to the fact that Turkey is a tourist country that attracts nationalities and tourist destinations on a permanent and large annual basis, as well as the services provided to tourists are less expensive compared to the mother country, especially countries Arabic.
In this article, we explain to you the types of real estate investment in Turkey, the best forms of investment in it in proportion to the financial capabilities of investors, the duration of investment in Turkey and its ability to manage this property. The types of real estate in Turkey are classified as being of three types, which are investment in apartments, villas or Commercial real estate or lands, and we will show you in detail the advantages of each investment and how to invest in them:
First: Investing in residential real estate, which are of two types:
1. Residential apartments:
If a person aspires to achieve a higher profit, it is preferable that the investment be in projects under construction, because the profit returns in this case are higher than the receipt after preparing the project or reaching its final stages, and the more the project is taken in its early stages, the greater the profit there will be. Investing in a project in its first phase that has just begun excavations will greatly increase the profit rate.
The disadvantages of this investment:
The investor was subjected to severe pressure due to following up on the developments of the project and the follow-up required, but today there are real estate companies that follow up on these tasks and supervise them on behalf of the investor himself, and in this case the person avoids this obstacle, by seeking the help of a strong real estate company in the market with confidence and real estate experience .
And the things that must be reviewed so that the investor does not fall into future problems, is to verify the licenses, the capital of the project and its ownership, and is the land shared between the owner of the land and the owner of the construction company? Mother Earth and the construction company of the same person.
As for the idea of investing in a ready-made residential apartment with complete finishing, with the aim of renting in Turkey, it is a useless method, because the rental returns in this case are weak and useless profit, and the rental returns range between 3% to 5%, where this percentage is net income, Because the tenant is supposed to bear the maintenance expenses, and the property owner takes this net profit percentage for himself.
And if a person wants to invest in apartments, it is preferable to invest in small apartments 1 + 1 and 2 + 1, because the sale and rental movement in them is very large.
2. Villas:
Investing in villas is not strong because the demand for them is low, and often investors do not want to invest in them because they require high capital. Today, there are no villas in Turkey for less than half a million dollars, especially in Istanbul, and the annual revenue increase rate only reaches 4% or 5%. Only, and in the event that a person purchases a villa under construction, and in the event of a desire to invest in villas, the investment procedures in them are the same as the requirements for investing in a residential apartment.
Second: Commercial Investment:
1. Commercial real estate:
It is considered the best investment ever in the whole world, but Turkey is characterized by the presence of a system called “Home Office”, meaning that the same building has more than one apartment and the rest are commercial offices.
Likewise, the commercial real estate license enables the investor to display the property on real estate websites, and thus enables him to rent daily, weekly, and monthly tourist apartments, and their returns are higher than the long-term contract of up to a year.
2. Offices:
The building property itself may only be a licensed office building, or only a licensed “Home Office” and it can also rent the apartment as a residential property as well.
3. Shops:
It is considered one of the best investments that it is recommended to invest in and the return on it is high, in addition to the opportunity that the tenant from the client or the owner of the property is the company and not a person. Their contracts are long-term, taking into account annual inflation, and this is recorded in the contract.
Third: Land investment, which is of two types:
1. Investing in agricultural land:
In the event that a person wants to invest for a long-term period ranging from 10 to 20 years, here it is advised to invest in agricultural lands, because obtaining a construction license in agricultural lands takes a long period of time, perhaps up to 10 years or more, and when the construction license comes in that period The price of the land increases exaggeratedly, the increase can reach 400% to 500% for one land, for example a land that was purchased for 150 thousand dollars, it may be sold after that for 600 thousand dollars or half a million dollars, and sometimes it may reach a million dollars if It has been licensed as a commercial license, for example, to establish a commercial mall or commercial project on this land, and the profit may reach 1000%.
But the disadvantages of this investment:
Delaying the construction license on agricultural land, it takes a period of more than 15 years until the license is issued, but if a person wants to invest in this land in the long term, the profits will be very high.
2. Investment in lands licensed for construction:
The investment project for this land must be submitted within three years, which requires a rapid movement in project planning. There are two types of investment in licensed land:
- The investor contracts with a real estate developer to build and supervise the project, and takes a percentage of the project’s profits by agreement between the two parties.
- The investor himself builds real estate on this land and supervises it, and therefore he is the owner and supervisor of the project, and the returns of this investment are very high and the profit is achieved according to the type of investment, and the recovery of the capital of this project ranges from periods that may reach from 18 to 36 months, depending on the area of the land And the size of the building that will be on it, and the percentage of profits may reach from 50% to 90% during these periods.
In conclusion, in this article, everyone who wants to invest in real estate in Turkey has two options, either the direction to invest in offices because their income is high, or the direction of resale by buying a project under construction in the initial stages of the project and selling it in the event of the completion of the project.
