A detailed guide on commercial property prices in Turkey

Investing in commercial real estate and investing in housing are two paths to achieving varying profit and investment returns, but there are some key differences between the two.

Commercial real estate usually refers to properties used for commercial purposes, such as office buildings, shopping centers, or warehouses. These properties can generate income through lease agreements with tenants, resale, or even direct use. Investing in commercial real estate can be more complex than investing in homes, but commercial properties tend to provide higher financial returns.

Both commercial and residential real estate investments have their advantages and disadvantages. Commercial real estate offers the possibility of achieving higher returns but also comes with greater risks, while residential real estate is generally less risky but may offer lower returns.

What are the factors affecting the price of commercial real estate in Turkey?

The price of commercial real estate in Turkey can be influenced by several factors, including:

1. Economic conditions in the country: The overall health of the country's economy can affect demand for commercial real estate and, consequently, prices in general.
2. Supply and demand: If there is a shortage of commercial real estate in a certain area, prices will tend to rise. Conversely, if there is an oversupply, prices will tend to drop.
3. Location: Properties in more desirable locations, such as central business districts or tourist areas, tend to command higher prices. Properties near major transport hubs or in densely populated cities also tend to be more expensive than those in less attractive areas.
4. Government policies and regulations: Government policies and regulations can also affect the price of commercial real estate, such as zoning laws, property taxes, and foreign investment regulations.
5. Political stability and security: Political stability and security in the country naturally affect investor sentiment, which may impact demand and prices for both commercial and residential real estate.
6. Building characteristics: Building features such as age, size, and condition can also affect the price of commercial real estate, as is the case with residential properties.
7. Zoning regulations: If a building is located in an area that allows for a variety of uses, it will be more valuable than a building in an area restricted to a single use, such as closed industrial zones.
8. Tourism: Turkey is a popular tourist destination, which can affect demand for commercial real estate in tourist areas and thus prices.
9. Currency fluctuations: Fluctuations in the value of the Turkish lira can affect the price of commercial real estate.

Commercial real estate prices by Turkish cities:

Commercial real estate in Istanbul

Commercial real estate prices in Istanbul can vary depending on the location, size, and condition of the property. In general, commercial properties in prime locations, such as the city center and popular tourist areas, tend to be more expensive than others.

Commercial real estate prices in Istanbul can range from about $1,000 to $3,000 per square meter on average, with some luxury properties reaching up to $14,000 per square meter.

It is also important to keep in mind that prices can fluctuate based on current economic conditions and supply and demand in the market.

Commercial real estate in Ankara

Commercial real estate prices in Ankara—like other Turkish cities—are influenced by several factors, such as location, accessibility, and demand for this type of property.

Commercial real estate prices can also be affected by the overall state of the economy, as well as local market conditions.

In any case, Ankara's commercial properties can be considered suitable for investment, given its location and importance as the political capital of the country.

Commercial real estate in Bursa

The city of Bursa is located in northwest Turkey and enjoys a developed economy and commercial real estate market. The city is known for its rich history, cultural heritage, and natural beauty, making it a popular tourist destination. As a result, demand for commercial real estate in Bursa is increasing, especially in the city center and tourist areas.

Commercial real estate prices in Bursa can vary depending on the location, size, and condition of the property. Prices can range from about $800 to $2,000 per square meter, with some luxury properties reaching up to $3,000 per square meter.

Bursa is also one of the most active industrial cities in Turkey and is home to many textile, automotive, and heavy machinery factories. Therefore, commercial real estate in Bursa is also a good option for industrial purposes.

Commercial real estate in Antalya

Antalya is a popular tourist destination located on the Mediterranean coast of Turkey. As such, commercial real estate in the region is primarily focused on the tourism industry, such as hotels, resorts, and holiday rental properties, which can generate high investment returns for investors, especially during peak tourist seasons.

In addition to tourism-related properties, there is also demand for commercial real estate in Antalya for other purposes such as retail and offices, especially in properties located in the city center.

The real estate market in Antalya has grown over recent years and is considered relatively stable. The average prices of luxury commercial real estate in Antalya can start from around $1,300 USD.

Commercial real estate in Trabzon

The commercial real estate market in Trabzon is mainly based on retail and office spaces, as well as some tourism-related properties such as hotels and holiday rental properties. The city's economy is primarily based on agriculture and trade.

The city has seen significant development and modernization in recent years, positively impacting the real estate market. The Turkish government is also investing in infrastructure projects in the city, which are expected to further boost the real estate market.

Since Trabzon is a relatively small city, its commercial real estate market is not as diverse as in other major cities. However, the city's location, proximity to the Black Sea, and natural beauty make it an attractive destination for tourism and a good investment opportunity in this sector.

Trabzon is considered one of the cheapest tourist cities in Turkey in terms of commercial real estate prices, outperforming Antalya, Sakarya, and Ankara.

Read more about: Tourist real estate and what makes investing in it attractive in Turkey?

Commercial real estate in Kocaeli

Kocaeli is located in the Marmara region of Turkey and has a rapidly growing economy and an increasing population, which may lead to higher demand for commercial real estate. Some of the most popular commercial real estate options in Kocaeli include office buildings, retail spaces, industrial warehouses, and the city also hosts a large number of factories.

Commercial real estate prices in Kocaeli can vary depending on the type and location of the property. Prices are similar to those in Ankara and are cheaper than in Istanbul, despite being directly adjacent to it.

Commercial real estate in Sakarya

Sakarya can be considered the twin sister of neighboring Kocaeli, due to the many intersections and similarities between the two cities. Even famous tourist attractions are divided between them, such as Sapanca Lake and the nearby Kartepe Mountain...

The tourism industry is active in Sakarya, driving investment in the commercial real estate sector. Commercial real estate prices there are similar to those in Ankara and Kocaeli.

Advantages of investing in commercial real estate in Turkey

We can summarize the topic of investing in commercial real estate in Turkey in several key points, including:

1. Growing economy: Turkey has a growing economy, which may lead to increased demand for commercial real estate and a potential rise in the value of such properties.
2. Strategic location: Turkey is located at the crossroads of Europe, Asia, and the Middle East, making it a strategically important location for companies and investors. As a result, we see increasing demand from global companies to establish commercial headquarters in major Turkish cities.
3. Infrastructure development: The Turkish government continually invests in infrastructure development, such as transportation, airports, and high-speed rail networks, which can increase interest in commercial real estate in those areas.
4. Tourism industry: Turkey is a popular tourist destination, which can drive increased demand for commercial real estate in tourist areas such as hotels, restaurants, and retail shops.
5. Government incentives: The government has implemented various incentives for foreign investors, such as reduced tax regulations and financial exemptions, to encourage investment in the commercial real estate market.
6. High rental income: Turkey offers the potential for high rental income due to strong demand for commercial real estate, especially in major cities, which can provide steady income figures for investors.
7. Growing population: Turkey's population is growing at a steady and relatively high rate, which may lead to increased demand for commercial real estate.
8. Low property prices: Compared to other European countries, commercial real estate prices in Turkey are relatively low, offering investors the opportunity to purchase properties at a lower cost, with good price appreciation over time.

Buying and investing in commercial real estate in Turkey with Imtilak Real Estate

Turkey enjoys a rapidly growing economy and a real estate market that is steadily advancing towards development and prosperity, making it an attractive option for commercial real estate investment.

Imtilak Real Estate is classified as a leader in the real estate marketing sector in Turkey. It is a prestigious company specializing in assisting foreign investors to buy and manage commercial real estate in Turkey.

Imtilak Real Estate offers its clients the best freehold opportunities in all types of properties, opening the door wide for them to own and invest in real estate in Turkey, with a full range of pre- and post-sale services, Turkish citizenship procedures through real estate ownership, in addition to support in finding suitable opportunities, legal and financial solutions for investment, and the expertise of our professional team of consultants to ensure full awareness of investment benefits, potential risks, expected financial returns, and other professional services that have earned Imtilak its pioneering position in this field.

Edited by: Imtilak Real Estate©