Real Estate Investment Returns in Turkey
Everyone asks about the returns that will be obtained from real estate investment in Turkey, is it great? What is the ideal way to get a large and abundant return? What properties are suitable for real estate investment for capital development?
In this article, TAMAM LAMA Real Estate discusses with you an important topic for anyone interested in the Turkish real estate sector, especially investment, through which we answer your various inquiries.
Are the returns on real estate investment in Turkey great?
Turkey has become a very attractive investment destination in recent years, especially in the field of real estate. The Turkish economy has clearly grown over the past decade, and this has led to an increase in demand for real estate, both from local and foreign residents, and this has led to higher prices, and investors have been quick to take advantage of this situation and there are many reasons why investing in real estate in Turkey is a good idea as the country offers a wonderful lifestyle, beautiful landscapes, stable political environment and is also becoming increasingly popular among tourists, which leads to higher rental prices.
In general, the returns that you will get from real estate investment in Turkey are high, but you can increase your profits more than what is available by following some tips, the first of which is to take advantage of the tourist seasons, during which the demand for real estate increases unexpectedly, and also from the specifications of a skilled investor is to buy when prices are still low and selling when prices rise significantly to take advantage of the price difference that will result between the buying and selling stages.
Real estate suitable for real estate investment:
When we talk about the real estate market in Turkey, we are not referring to few or limited options. On the contrary, there is a large and wide range of properties available for sale that are suitable for investment to obtain a large and distinguished return. Here are the following paragraphs, most notably:
1 - Studio apartments:
As an investment, studio apartments in Turkey are a great option with prices starting at around 40 thousand dollars, which is very reasonable and rental returns are also high, with some studio apartments making more than 10% annually.
There are many reasons why investing in studio apartments in Turkey is a good idea and here are the most important ones:
First, the Turkish economy is growing rapidly, and this is likely to continue for the foreseeable future. This means that there will be an increased demand for rental accommodation as more people move to Turkey for business or leisure.
Secondly, the Turkish government is investing heavily in infrastructure projects such as airports and highways and this makes the country more accessible for international visitors, which will also increase the demand for rented accommodation.
Finally, studio apartments are a popular type of accommodation among tourists and businessmen alike meaning that they are relatively easy to rent out on a short-term basis, providing you with a steady income.
2 - Hotel apartments:
If you are looking for an investment hotel apartment in Turkey, you should know that there are many different options available to you where you can invest in a hotel apartment that has already been built and operated, or you can invest in a hotel apartment that is still under construction and there are many different types of hotel apartments that you can invest in them, and they each have their own advantages and disadvantages. You will need to carefully weigh these factors before making your final decision. Some of the things you will need to consider are the location of the hotel apartment, the size of the unit, the amenities provided, and the price.
3 - Tourist real estate:
Turkey has always been a favorite destination for tourists from all over the world. In recent years, the country has seen a huge increase in the number of foreign visitors and this has led to a boom in the construction of new hotels and resorts. As a result, there is now a great opportunity for investors to purchase tourist property in Turkey.
The demand for vacation rental properties is high, and there is a potential for significant rental income and capital appreciation. If you are thinking of investing in tourist property in Turkey, there are some things that you should keep in mind, including:
First, the Turkish government has recently implemented some changes that have made it easier for foreigners to buy real estate in the country.
Second, the location of your property will be important to its success as a vacation rental.
Third, you will need to find a reputable and experienced real estate agent who can help you navigate and make decisions in the process of buying tourist property in Turkey.
4 - Commercial real estate:
Turkey has become a very attractive country for commercial real estate investment in recent years and the country has become increasingly popular among tourists and Istanbul is now one of the most visited cities in the world. There are many other cities in Turkey that are also becoming popular tourist destinations and this has led to a boom in hotel construction. Restaurants and other businesses that cater to tourists and thus create a need for more commercial real estate, investors have been quick to take advantage of this opportunity.
5 - Investment villas:
The villa is one type of real estate that is becoming increasingly popular among investors. Here are some of the main advantages of investing in villas in Turkey:
-Strong Rental Demand
There is a growing demand for rental properties in Turkey, especially from tourists and expats and this means that investors can expect to see strong returns on their investment.
Villas are likely to increase in value, giving investors the ability to make a good return on their investment.
-Flexible Payment Options
There are a number of different payment options available when buying a villa in Turkey, including paying in cash, taking out a mortgage, or using both, giving investors flexibility when it comes to financing their purchases.
How to invest in real estate in Turkey?
It is natural to ask about the ideal way to invest in real estate in Turkey, especially if this is your first experience in the Turkish real estate market. You certainly do not have enough knowledge that motivates you to act on your own because real estate laws differ from one place to another and from one country to another, and here are the most prominent:
1 - Renting out real estate for a fixed return:
Real estate in Turkey is seen as a good investment and the main reason behind this is that there is always a demand for rental properties, especially in big cities.
So one of the forms of real estate investment in Turkey is to rent it with a fixed return and in order to do that, you need to buy a property and then search for tenants who want to sign a contract for a certain period of time, usually 1-3 years and the advantage of this type of investment is that you will have a guaranteed income, which can come in handy if you need to rely on rental income to cover mortgage payments or other expenses and the downside is that you won't be able to benefit from any capital gains during the period that you cannot do anything with the property due to the lease.
2 - Reselling the property to take advantage of the price difference:
The main advantage of this form of real estate investment in Turkey is that it does not tie up a lot of capital so you can buy a property and resell it and collect the difference and the downside is that you need to find a buyer for the property, which can be difficult and time consuming and you also need to be aware the possibility of a price drop, which could erode your profits.
3- Investing through real estate development:
One of the forms of real estate investment in Turkey is real estate development and restoration and the process of developing and restoring property can be complex and time consuming, but it can also be very rewarding.
There are a few things to keep in mind if you are considering investing in real estate development and the most important ones are:
- Choose the appropriate location.
-Obtain the necessary permits and approvals.
-Work with a reputable developer or contractor.
- Make a solid plan.
-Be prepared for unexpected costs.
Cities suitable for real estate investment in Turkey:
If you want to invest in real estate in Turkey, you must take a quick look at the most important cities suitable for this purpose. In the end, what really matters to you is that you get high and distinctive profits.
Istanbul is the most populous city in Turkey, with a population of more than 15 million people, and it is the economic and cultural center of the country. The city has a fast- growing economy, and its real estate market has boomed in recent years and real estate prices have doubled in the past five years, making Istanbul one of the most expensive in Turkey.
Ankara is the second largest city in Turkey, with a population of more than 5 million and is the capital of Turkey and its political and administrative center. Ankara also has a diversified economy, with sectors such as government, education, healthcare, and manufacturing. The city's real estate market has seen strong growth in recent years, due to factors such as population growth and economic development.
Izmir is the third largest city in Turkey, with a population of more than 4 million. It is located on the coast of the Aegean Sea and is one of the main tourist destinations in the country. The city's economy depends on tourism and agriculture.
Ingredients for successful real estate investment in Turkey:
You cannot get the profits you are looking for without having a clear vision of the ingredients and factors that must be adopted in order to reach the profit that suits you.
-Research the Turkish real estate market and make sure you understand the local market conditions, including prices, before making any purchase.
-Having a clear investment strategy knowing the type of property you are looking for and asking yourself why you are buying it will help you stay focused on your goals and avoid making rash decisions.
-Get expert help and get a reputable real estate agent or broker who knows the Turkish market and can help you with your purchase.
-Don't expect to make a fortune overnight with your investment, it may take some time to figure out what profits you can get initially so be patient.
-For a successful real estate investment in Turkey, the good location is required where the location of the property determines its future value, so it is important to choose a location that grows or has the potential to grow.
-Also, what is required for a successful real estate investment in Turkey is a well-built property, which means that the property must be built on a high level of high-quality materials in order to be attractive to buyers and renters.
-Competitive price is one of the important components of a successful real estate investment in Turkey as the property must be priced correctly in order to attract buyers and achieve a return on investment.
Real estate investment concerns in Turkey:
Although investing in real estate in Turkey is completely safe and the risks are somewhat low, this does not negate its existence and the need to review it, the most important of which are:
-The Turkish currency is not very stable, which may make real estate investment in Turkey a risky proposition.
- Turkey has been known to be a turbulent country in the past, with political and military coups occurring every few years and this can make real estate investors anxious about investing in the country.
- The real estate market in Turkey is still relatively new and as such, not a lot of data is available to help investors make informed decisions and this lack of data may lead to investors making poor investment decisions.
- Turkey has strict zoning laws that make it difficult to develop real estate. For example, it is illegal to build on agricultural land. There are strict height restrictions on buildings in urban areas and these regulations can make it difficult to profit from real estate investments in Turkey.
-It can be difficult for foreigners to get financing to buy a property in Turkey as Turkish banks usually require a down payment of 30-50% of the purchase price and often prefer to lend to Turkish citizens and as a result, many foreigners end up using private lenders, which can be costly.
In conclusion, you should know that real estate investment cannot be a loser and it is not possible to lose its value completely, and the reason for this is that it will quickly recover its value and increase as a result of the increasing demand for it.
Do not forget that the current time is the best time to start such a project in light of the expectations that confirm that prices will rise in the coming period significantly, and this is a guarantee for the investor.
