Turkey is a magnet for capital also it is the most attractive country for Arab and foreign investors, thanks to the existence of diverse investments available, including real estate investment, which has become very popular in the recent years, However, Istanbul’s real estate, in particular, is of great interest to those wishing to buy real estate to invest in Turkey.
The return on real estate investment in Turkey is one of the most important positives that drive many foreign investors to enter the Turkish real estate market.
What is the return on real estate investment in Turkey?
The return on investment in general is the ratio between the net profit and the cost of the investment. A higher return on investment means positive gains for the investment.
The return on investment is used to measure the profitability of a particular investment option or to compare several investment options, and it expresses the percentage of investment increase or decreases during a specified period.
Istanbul, this huge and charming city, the commercial capital of Turkey and the destination of tourists from all over the world, contains offers and a wide choice of residential and commercial properties that have the highest investment returns among the rest of Turkey’s cities, due to the strong infrastructure and the extensive transportation network that It covers all aspects of the city. And when comparing it with the rest of Europe, we will find that its investment returns are even higher than those in some European countries because Istanbul is unique with the most beautiful and distinguished real estate, and many companies guarantee profit returns that may extend to 20 years.
How to calculate the return on investment in Turkey?
For real estate, the method of calculating the return on investment differs from the rest of the investments, where the capital increase is calculated on an annual basis, the investor can buy a new property in an emerging area and increase its price, whereas the investor must choose well to ensure a great investment return.
One of the most important advantages of real estate investment in Turkey is that it is guaranteed, and this is due to the increasing demand for homes for rent and the increase in the value of real estate annually. Turkey and Istanbul in particular are called the city of real estate and tourism rental.
In addition, there is a great possibility to double the profits in the residential real estate that is under construction, as once its construction is completed, its prices increase noticeably and can reach double the price that the construction company started to sell, so the investor must choose the strategic and vital location or in the developing areas with promising future
For example, if an investment is made in a real estate with a guaranteed investment return of 6% for 5 years, the investor will receive 30% of the value of the paid property, but if the invested area is developing and its future is promising, the value of the return will not be less than 50%.
In the case of investing in a strategic location in Istanbul, such as Kalbasın Express or Basaksehir, the return on investment will increase to 100%.
What are the types of Turkey real estate that return to the investor with the highest rate of return on investment?
In fact, we see that the real estate investor in Turkey has several options to obtain a high rate of return on investment, including residential or commercial real estate investment, or he can invest in real estate in Turkey that is under construction. It is worth noting that the investor can benefit from Turkey as a whole in general and Istanbul in particular because of The presence of many tourist places, so the investor can create an investment in touristic apartments by buying and then renting them.
Commercial real estate includes both shops, hotel apartments as well as office apartments, and we will not forget to mention restaurants and stores. This type of investment provides a high-profit return from renting or reselling the property, especially if the property is office apartments or shops where the tenant rents the property for a long term and the rental period is always prolonged in order not to lose his clients who are accustomed to the location of his trade.
As for investing in touristic apartments, the investor must choose strategic locations and locations close to the tourist destinations to achieve a high investment return.
As for investing in apartments, it is better to choose apartments in important locations and choose apartments under construction, as they achieve an annual investment return of no less than 20% annually, and if they are sold after delivery, they will achieve greater investment returns.
We also note the importance of land in Turkey, as it also conducts a great investment return and is considered one of the most successful investments. The reason is that land prices in Turkey are incredibly cheap if compared with the prices of ready-to-live properties, and the land can be benefited either by using it for agricultural purposes or by building real estate investment projects such as residential complexes, commercial places such as malls and hotels or even villas and at the same time we must note that the investor must make sure of the type of title deed, whether it is residential, agricultural or commercial.
Is real estate investment in Turkey profitable?
To clearly answer this question, it is necessary for us to highlight the following: In the real estate market, not all real estate are equal, and we cannot talk about a property in an undesirable area or with normal specifications, as we talk about a property in a strategic location and with high specifications, and from here we conclude that the investment can be profitable and its returns are high if it is chosen intelligently. The quality of the property, the specifications of its location and the specifications of its construction and design play a major role in determining the return on investment.
And we will mention some important facts that help the investor choose a property that has a good investment return:
You must first pay attention to the location of the property, for example, a location in the city centre, the property’s proximity to the airport, a location with a sea view… and other characteristics.
And then you should pay attention to the type of property: is it residential (villa, apartment in a complex, etc.) or is it commercial (office, shopping mall, hotel…etc).
One of the important things is the age of the property. Relatively modern properties are more desirable than their old ones, or you can choose an old property and completely renovate it, and thus you will get a good investment return.
Real estate services: If the property is within a complex, it will receive additional services such as the gym, swimming pool and green gardens, and this increases its investment return.
Property features: such as interior and exterior finishes and added technologies such as electrical appliances and the smart home feature.
How to avoid loss when buying a property in Turkey?
Before buying a property in Turkey, the investor must review the data we mentioned previously, such as location, type, age, services and advantages of the property. Profit As for the risks that reduce or cancel the return on investment, the investor should avoid choosing properties that contain problems, such as licenses and issuing the title deed… and always seek the assistance of trusted experts to benefit from their expertise.
For this reason, OG Real Estate Investment Company in Turkey offers you its advisory services and other services such as airport reception, to help you get the best real estate option with the best return on investment. A property you would like to invest in. Upon your choice, we will be with you during the legal procedures after sale, such as extracting the title deed and registering it through the webtapu. Do not hesitate to contact us through the available means of communication.
