Advantages and Disadvantages of real estate investment in Turkey

Published by iltizam on

Advantages and Disadvantages of real estate investment in Turkey

In recent years, the real estate sector in Turkey has become one of the most growing real estate markets in the world, as Istanbul has become more developed and real estate projects in it are constantly expanding. The development wheel in Turkey is moving very quickly and with steady steps.

Wherever you wander in Istanbul or other Turkish cities, you will inevitably be impressed by the unique style of its buildings, which blends the legacy of the past with the evolution of the present with the blending of the beauty of the beauty of that God has distinguished this wonderful country.

What distinguishes Turkey?

In Turkey, the real estate market races its counterpart from the European and Arab markets, but it has become the best option for investors and those wishing to settle in Turkey due to turkey’s strategic location connecting the continents of the world, and the amazing beauty of Istanbul and all of Turkey.

Turkey is also characterized by a combination of European cultural development while preserving the values and principles of Islam and general customs.

Turkey is the preferred destination for families seeking stability and raising their children in an advanced country while preserving them from cultural or moral problems that some residents of Europe may experience.

What are the reasons for the high value of real estate in Turkey?

The value of real estate investments in Turkey increases periodically for the following reasons:

  • The Turkish state permanently improves the infrastructure.
  • Transformations and growth in general in the Turkish economy.
  • Increase cash flows from real estate.
  • The impact of the large volume of demand in the Turkish real estate market.
  • Announcing new renovations and benefits.

What are the reasons that may lead to a decrease in the value of the property in Turkey?

  • Emergency sale of the property
  • Lack of maintenance and continuous renovations of the property
  • Demand and supply conditions in the real estate market
  • A Change in the government real estate investment laws
  • Reverse impact of deteriorating infrastructure and social services

What are the types of real estate investment in Turkey?

  • Residential real estate investment
  • Commercial real estate investment

Residential real estate investment

It is to invest in real estate that is used for residential purposes only.

What is the commercial real estate investment?

It is to invest in real estate that does not include housing by a family or family such as investment in (offices, shops, real estate used for industrial purposes, retail real estate, hotels, and student residences.)

Comparison between residential real estate investment and commercial real estate investment

Advantages of commercial real estate investment in Turkey

  • Monthly income and investment return from real estate are relatively high.
  • The owner of the property does not have to deal with expenses related to the repair and maintenance of the property or its development because often the tenant is authorized to deal with the property in accordance with his work and the purpose of renting it.
  • Tenants have good source of income, so you will not have any problems getting back your rent on a regular basis.

The disadvantages of commercial real estate investment in Turkey

  • The difficulty of finding tenants is sometimes one of the drawbacks of this type of real estate investment.
  • When Influenced by general economic conditions, it may sometimes make the investment property unoccupied for some time.
  • It can also be a little difficult to sell the property because the demand for commercial real estate as buying or owning is not as dense as investing in residential properties.

Advantages of residential real estate investment in Turkey

  • Ease of finding tenants.
  • Easy to sell residential properties, especially if they are in high-class area.

Drawbacks of residential real estate investment in Turkey

  • You will have to deal directly with the tenants and find solutions to their problems yourself, how ever this can be solved through appointing a trusted company.
  • You may have problems like not paying rent on a regular basis.

Where is the best place to own a property in Turkey?

According to each person’s desire and need differs the preferred place to invest, in terms of the beauty of nature most Turkish cities are considered tourist and spectacular views with distinction, as some Turkish cities are characterized by the fame of some industries or agriculture and some cities are characterized by the view of the coast of one of the seas such as the Black Sea or the Mediterranean Sea.

Istanbul is the preferred destination for most Arab investors because of its huge business and tourism activity, followed by property in Antalya, Bursa or Yalwa.

Real estate prices in Turkey?

The price of the property varies from location to location in Turkey, there are several factors such as the area of the property, the date of construction, location, and public services nearby, Is the property still in the construction phase or ready for housing? All these factors contribute to determining the price of the property.

If the property is still under construction, the price is slightly low, leaving a good profit margin in the future for those wishing to own for commercial real estate investment.

In Istanbul prices are divided into three sections by region as follows:

1-Besiktas, Shishli, Ataşehir.

These areas, which are preferred by the elite of Turkish society and can be called the city center, are among the archaeological sites in Istanbul as well as overlooking the Bosphorus Strait and near the Area of Fatih, Sultan Ahmed, Taksim area and Ayoub area and these areas are very crowded buildings and there is rarely land to build there and thus the establishment of new projects there is only a few percentages available.

Prices in the region start from $3000 dollars to $6000 per meter square.

2- Bashak Shahir, Junchli, Mahmoud Bayh, Bahsli Evelar.

These areas are preferred by the majority of Turks as well as preferred for foreigners who are considering investing in Istanbul because prices are medium and can be purchased in installments from private or government projects.

Prices in this area start from $800 to $1,300 per meter.

3-Belekdozo, Asnort, Arnaout Koi, Avgelar

Real estate prices in these areas start at $400 to $700 per meter, with some properties overlooking the lakes being higher.

What are the reasons for the high value of real estate in Turkey?

  • The Turkish state permanently improves infrastructure.
  • Transformations and growth in general in the Turkish economy.
  • Increased cash flows from real estate in Turkey.
  • The impact of the large volume of demand in the Turkish real estate market.
  • Announcing new renovations and benefits.

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