Investment Real Estate in Turkiye: A Comprehensive Guide
2023-11-30
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Every investor wants to increase his wealth and diversify his investment portfolios to achieve success in the business world. Real estate investment is a good option for them. However, this market is a bit difficult and risky for small investors. Therefore, knowledge and information are crucial to decision-making regarding your real estate investments. This blog provides a guide for investors wishing to start their projects in the real estate market in Turkey.
Table of Contents
What Is Investment Real Estate in Turkiye?
Investment real estate is real estate that generates revenue or is otherwise meant for investment reasons rather than as a main residence. The real estate investment process includes buying, management, and sale or leasing of real estate for profit. A real estate investor is someone who actively or passively invests in real estate. Some investors actively develop, enhance, or remodel properties in order to profit from them.
Types of Investment Properties in Turkiye
Residential: Many investors prefer to buy a rental apartment to rent it out to tenants. This is the most popular way to invest in the real estate market due to its familiarity. optimal examples of residential properties are single-family homes, condominiums, apartments, and townhomes.
Commercial: Some investors, particularly companies, buy commercial buildings for business purposes only. These properties may require more maintenance and renovations, but these expenses may be mitigated by larger returns.
Mixed-Use: these properties can achieve commercial and residential purposes at the same time. A residential building may, for example, contain a retail outlet on the ground floor, such as a convenience store.
Simple Ways to Invest in Real Estate in Turkiye
Rental Properties
Individuals with do-it-yourself (DIY) renovation abilities and the patience to supervise tenants may find that owning rental homes is a great prospect. Local properties are possible, as are out-of-state possibilities. This investment method needs significant funds to cover initial maintenance expenses as well as instances where the property becomes vacant if tenants do not pay their rent.
How many living rooms are in the apartment?
Real Estate Investment Groups (REIGs)
A real estate investment trust ("REIT") is a business that owns, operates, or funds income-generating real estate. REITs, like mutual funds, provide an investment option. Real estate investment groups (REIGs) are suitable for persons who wish to own rental property without having to manage it.
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Related: The Ultimate Guide To Real Estate Investment In Turkiye.
House Flipping
House flipping is when someone buys a house, keeps it for a short time, and then sells it for a higher price. House flipping is only for those who have extensive knowledge in real estate evaluation, marketing, and renovation. House flipping necessitates cash as well as the capacity to do or supervise repairs as needed.
Commercial Real Estate
Any investment related to commercial purposes like stores and warehouses is considered a commercial real estate investment. People seek this type of investment because it is more profitable compared to other options. For example, You can build a small self-storage facility in an industrial park, a small mall, or even an office building. Renting each of these buildings requires a unique set of skills, but ultimately, commercial assets have higher values than residential properties and often command higher rents.
Related: Advantages of investing in Commercial Real Estate.
Benefits of Investing in Turkish Real Estate
Returns On Investment
As the tourism industry flourishes in Turkiye, more investors start to consider Turkiye’s real estate as an attractive opportunity. Real Estate Real estate in Turkey can provide annual profits from investment returns earned through sale or rental, which can reach up to 12% of the initial value of the property. So if you think about investing in the real estate market we highly recommend Turkiye, a stable country with prosperous potential.
Obtaining Turkish Citizenship
Owning a $400,000 property, whether an apartment, office, villa or business, might qualify an investor for Turkish citizenship under favourable circumstances. This has proven to be a powerful inducement for investors coming from insecure nations to invest in Turkish real estate. The Turkish government has taken this issue seriously and simplified the process for investors seeking citizenship.
Governmental Support For Real Estate Sector
Several initiatives were put in place to attract more real estate investment. As the President commanded, certain real estate companies, for example, have completely removed interest rates. Furthermore, the down payment for purchasing property in instalments was cut from 25% to 20%. Foreigners and expats who purchase real estate in Turkey are likewise excluded from paying VAT.
Affordable Property Prices in Turkey
Turkey's cheap apartment prices attract investors compared to many European countries. In Istanbul, for example, a modest apartment under construction costs around US$100,000. This apartment will make a good profit when sold after completion. However, a cheap apartment does not mean low quality. The construction and facilities can be high-class.
Risks to Investment Real Estate
How many living rooms are in the apartment?
The real estate market, like any other market, has its ups and downs. Consider the housing market crisis that broke out in 2008. The crisis was founded on the mistaken belief that the value of rental properties always rises. However, this is not the case. Although real estate tends to gain over time, it can deteriorate (which happens quite often). Real estate investors who don't realize this are more likely to take on too much risk in their investments.
Invest in Turkish Real Estate with Imtilak
Real estate investing is advantageous in terms of diversification, passive income, and tax benefits. but before investing, investors should carefully assess their financial goals, risk tolerance, and available resources. the opportunity is also important.
Get a free real estate consultation
What is your preferred way of communication? How would you like to be contacted?
Get a free real estate consultation
Choose the appropriate day for us to contact you
Imtilak is a leading Turkish real estate company that can help you find, buy and sell your property. Contact us now and discuss your investment goals with our team.
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