Real estate investment in turkey an approved profit for investors
Benefits of Real Estate Investment in Turkey
The report conducted a statistical study on the investment
returns of real estate investments in the Turkish sector, specifically focusing
on the Istanbul market and comparing it to other real estate markets. When it
comes to the question "Why is the Turkish real estate market attractive
for investment?" the report indicates that the real estate sector in
Turkey holds a prestigious position among the world's top 18 economies and is
poised to become one of the top 15 global economies by 2050.
Real Estate Investment in Turkey: What You Need to Know
According to Mr. Kokhan Taş, the head of the Turkey branch
of the global real estate group "Coldwell Banker," real estate sales
in Turkey are expected to reach 1.5 million units this year. Information
published by the group suggests that real estate investment in Turkey is the
only investment that continues to yield continuous profits without being
exposed to the risks of loss faced by other sectors.
In his assessment of the current situation, Mr. Taş stated,
"About 1.289 million units were sold in the real estate sector last year,
achieving a 10% growth despite the challenges the sector faced leading up to
the elections. Real estate sales are expected to reach 1.5 million units this
year. It's worth noting that this growth and the price increase of 20% were
achieved with an interest rate of 1.20%. If the interest rate is reduced to
between 0.75% and 0.85%, it will have positive effects on the sector, boosting
sales and making the real estate sector a center of attraction for investors
from various sectors."
Mr. Taş added that although Istanbul is considered the heart
of the real estate sector, other cities such as Bursa and Antalya will gain
significant importance in the future. He advised investors to buy small and
medium-sized properties as they are quicker and easier to sell. He also
emphasized the importance of investing in residential complexes near vital
centers, as these properties are easily sold. The real estate sector in Turkey
remains among the best investment sectors for profit, and real estate sales are
expected to increase by the end of this year.
Achieving Profitability in Real Estate Investment in
Turkey
To achieve profitability in real estate investment in
Turkey, you can follow the following steps:
Gather Comprehensive Data About the Targeted Property:
Before investing, accurate information about the property to
be purchased must be collected. This includes its location, legal status,
property evaluations, and expected returns.
Invest in Promising Areas:
It's important to choose areas that are expected to
experience increased investment activity in the future, such as the European
side areas of Istanbul. This increases the likelihood of achieving good returns
on the investment.
Consult Experts:
It's always preferable to consult individuals with expertise
in the real estate field before making any decisions. Benefitting from
professional advice can save a lot of time and money.
Avoid Risks:
Investments in properties facing fundamental issues, such as
legal or structural problems, should be avoided. Careful property inspection
reduces the likelihood of future issues.
Capitalize on the Tourist Trend:
Data shows that millions of tourists visit Turkey annually,
and owning and investing in properties in tourist-attractive areas can be
beneficial. Tourism can contribute to achieving additional economic
feasibility.
Benefit from Turkish Citizenship:
Under legal amendments, Turkish citizenship can be granted
in exchange for purchasing a property worth $400,000. This enhances the
benefits of real estate investment and attracts more investors.
Real Estate Investment in Turkey: Sustainable Investment
Despite the decline in many global real estate markets, the
Turkish real estate sector is witnessing unprecedented prosperity. This is
attributed to the stability of the Turkish economy, particularly after the
shift to a presidential system of government. This change has had a positive
impact on the stock market, attracting foreign investors to the Turkish
markets, with a focus on the real estate sector.
Promising figures from the Turkish Statistical Institute
show that real estate sales increased by 28.8% in September 2022 compared to
the same month of the previous year. This continuous increase enhances investor
expectations for the coming years, making the real estate sector in Turkey an
attractive and sustainable investment option.
Factors Influencing the Value of Real Estate Investment
in Turkey
Several factors influence the value of real estate
investment in Turkey, including:
Supply and Demand Balance:
The balance between supply and demand plays a crucial role
in determining the value of a property. An increase in demand relative to
supply can raise property values.
Location and Space:
The location and total area of the property significantly
impact its value. Properties in desirable areas close to services and
facilities usually hold higher value.
Rental Yields:
Estimating rental yields from the property plays a role in
determining investment feasibility. Stable and lucrative rental yields enhance
investment attractiveness.
Natural Factors:
The property's surroundings and climate can affect its
value. Properties located in attractive environments with favorable weather
conditions are usually more valuable.
Economic Factors:
Property values are linked to the economic stability of the
country. Economic growth can lead to an increase in property value.
Laws and Regulations:
Laws related to construction, permits, and rentals play a
role in determining property value and investment feasibility.
Social Trends and Taste:
Considering social trends and general preferences can affect
property attractiveness and, consequently, its value.
Expected Benefits:
Anticipating future benefits from the property, such as
value appreciation over time, can impact the investment decision.
Is Real Estate Investment in Turkey Profitable? Reasons
for Property Value Increase
Indeed, real estate investment in Turkey is considered
profitable. Several reasons contribute to property value increase and enhanced
feasibility:
Inflation Impact:
Inflation can lead to property value appreciation over time,
boosting investment return potential.
Supply and Demand Impact:
Increased demand for properties and limited supply can raise
their value.
Infrastructure Improvements:
Developing infrastructure in specific areas can increase
property values in those regions.
Economic Shifts and Growth:
Economic growth and shifts have a positive impact on
property values.
Cash Flow Influx:
Increased cash flow from the property, whether through
rentals or sales, enhances investment feasibility.
Urgent Improvements:
Making improvements to the property, such as decorations and
renovations, can raise its value.
Risks of Real Estate Investment in Turkey - Reasons for
Property Value Decrease
Despite the potential benefits, there are certain risks to
consider when investing in real estate in Turkey:
Supply and Demand Conditions:
Decreased demand or increased supply can lead to a decrease
in property value.
Economic Deterioration:
Economic downturn can result in a decline in property value.
Regulatory Changes:
Changes in government regulations can impact real estate
investments and their value.
Forced Sale:
Forced sale of property due to financial circumstances can
reduce its value.
Lack of Continuous Maintenance:
Neglecting maintenance can lead to property deterioration
and value decline.
Weak Infrastructure:
Poor infrastructure can negatively impact property
attractiveness and value.
Properties in Turkey: Profitable Investment for Foreign
Investors
Indeed, real estate remains a profitable option for foreign
investors in Turkey. The Turkish Central Bank confirmed in its report the
continued substantial profits the real estate sector provides to investors in
general. The increasing interest in areas like "Janak Kala" and
"Balicaser" reflects the attractiveness of the investment.
According to estimations from the Turkish Central Bank, the
property price index increased by over 11.17% across the country. This
signifies the growing demand and strong investment in real estate.
Areas like "Janak Kala" recorded an increase of
over 20.67% in the property price index, highlighting sustainable excellence.
The continued growth in significant cities such as Istanbul and Ankara contribute
to making real estate investment in Turkey a fruitful and sustainable choice
for foreign investors.
Benefits of Real Estate Investment in Turkey
This article studied several benefits of real estate
investment in Turkey:
Engagement in Statistical Analysis:
The report conducted a statistical study on investment
returns in the Turkish real estate sector. The comparison between Istanbul's
real estate market and other property markets sheds light on the sector's
investment attractiveness.
Turkey's Economic Strength:
Reports indicate that Turkey holds a prestigious position
among the world's top eighteen economies, and this status is expected to
further increase in the coming years. This enhances the attractiveness of real
estate investment in the country.
Investment Returns:
Investors seek properties at preferential prices, increasing
the net value of investments. Ongoing research and thorough comparison can
contribute to finding such opportunities.
Real Estate Sector Stability:
Despite economic fluctuations, the real estate sector in Turkey
remains stable and robust. This provides a conducive environment for long-term
investments.
Future of the Real Estate Sector in Turkey
The analysis covered expectations for the future of the real
estate sector in Turkey based on market data analysis. The analysis predicts
that the real estate market will continue to be active and vibrant, especially
in areas witnessing significant projects. It also highlighted that the decrease
in the value of the Turkish lira against the dollar can contribute to increased
foreign investments.
Conclusion
Turkey continues to be an attractive destination for real
estate investment due to its economic stability and opportunities in the
property market. With increasing interest from foreign investors and economic
growth expectations, the current time presents an excellent opportunity to
benefit from real estate investments in Turkey. Continuous research and
thorough study remain fundamental to maximizing these opportunities.