Homebuyers all over the world are looking to invest in real estate abroad in Turkey. A wide range of apartments, penthouses, and villas for sale across the country is attracting British, German, Russian, Asian and Middle Eastern nationalities to invest in the country. It's not a new fad either, as, in 2018, foreigners buying property recorded record sales. While domestic sales have slowed due to high mortgage rates, masses of foreigners buying homes are supporting the housing market.
Some are looking for positive cash flow by renting; others are looking to make money from investment homes and their market value, others want to retire here and are looking for their home away from home.
If you are one of thousands of people looking for residential real estate investment, do your homework. The vast market covering the regional hot spots includes many types of homes such as luxury, economy, modern and traditional. By knowing the market, you are entering, you can make the right decision for long-term capital appreciation and only purchase assets that strengthen your financial portfolio.
What is driving foreigners to invest in Turkish real estate?
To be clear, foreign buyers have been flocking to Turkey for decades. Affordable prices per square meter and the promise of a comfortable seaside lifestyle have even led some foreigners to move to the country, and they now live here year-round. However, the latest boost comes from the lucrative exchange rate, which pays off handsomely for foreign buyers who convert world currencies into Turkish lira. Buyers are getting twice as much for their money as they were five years ago. 2018 also saw another new law welcomed by many foreigners, namely adjustments to the citizenship investment market regime.
The return on real estate investment in Turkey is one of the main arguments that attract many foreign investors to invest in the Turkish real estate market.
What is the return on real estate investment in Turkey?
Return on investment is generally the ratio between the net profit and the cost of the investment. A higher return on investment means a positive profit for the investment.
Return on investment is used to measure the profitability of a particular investment option or to compare multiple investment options, and it expresses the percentage of investment growth or decline during a given period.
Istanbul, this huge and charming city, the commercial capital of Turkey and the destination of tourists from all over the world, offers a wide range of residential and commercial properties with the highest investment returns among the rest of Turkey's cities due to its strong infrastructure and extensive transportation network covering all aspects of the city. And if we compare 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 properties and many companies guarantee profit returns that can last up to 20 years.
How to calculate the return on investment in Turkey?
In real estate, the method of calculating the return on investment is different from the other 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, and the investor must make a good choice to achieve a high return on investment.
One of the most important advantages of real estate investment in Turkey is that it is guaranteed, which is due to the increasing demand for rental housing and the annual increase in the value of real estate. Turkey and Istanbul are known as the city of real estate and tourist rentals.
In addition, there is a great opportunity to double the profits in the residential properties that are under construction, because once the construction is completed, the prices can increase significantly and reach double the price that the construction company has started to sell, so the investor must choose the strategic and important location or in the development areas with promising future
For example, if an investment is made in a property with a guaranteed return of 6% for 5 years, the investor will receive 30% of the value of the paid property, but if the invested area is under development and its future is promising, the value of the return will not be less than 50%.
In the case of investment in a strategic location in Istanbul, such as Basin Express or Başakşehir, the return increases to 100%.
Which kinds of Turkey real estate return the investor the highest ROI?
The real property investor in Turkey has a range of choices to get a good percentage of investment return, such as commercial or residential real estate investments or investing in real property in Turkey, which is currently under construction. Investors could benefit from Turkey overall and Istanbul, particularly due to the abundance of tourist destinations, meaning that investors can invest in tourist-friendly apartments by purchasing and renting the apartments.
Commercial real estate comprises hotels, shops, and office spaces, and we will pay attention to restaurants and retail stores.
This kind of investment can yield an excellent return on investment by renting or reselling the property, specifically when the property is commercial or office space where tenants rent the premises for a lengthy period, and the rental duration is extended in order not to lose clients who are familiar with the area where his business is conducted.
When investing in tourist apartments, investors must select strategically located locations and be close to tourist spots to get a good return on investment.
When buying apartments for investment, it's recommended to pick apartments in desirable areas and select apartments under construction, as they will earn an investment yield of at least 20 percent. If sold following delivery, they will yield better investment returns.
It is also important to note the significance of the land in Turkey because it produces a high return on investment and is regarded as one of the most profitable investments.
The reason for this is that the land prices in Turkey are extremely low when contrasted with the costs of homes that are ready to live in, and the land can be utilized using it for agricultural purposes or for building real property investment projects like commercial areas, residential complexes like hotels and malls or even villas.
At the same time, it is important to remember that the buyer must be aware of the title deed type regardless of whether it's commercial, agricultural, or residential.
Is real estate investment in Turkey profitable?
To be able to answer this question clearly in a clear manner, we need to point out these points: In the market for real estate, there are many different types of real estate.
Not all properties are identical, and we can't discuss a property located in a secluded area or one that is not in the normal specification in the same way as an investment property that is in a strategic area and with high-quality specifications from this, we can conclude that the investment could be lucrative.
The returns are substantial when it is selected with care. The property's quality, the requirements of its location, and the requirements of its design and construction significantly impact the ROI.
Read also: How to invest in real estate?
We will also discuss some essential facts to help the investor decide on a property that offers a high return on investment:
Pay particular attention to the location of the property. For instance, an area within the city center and the property's proximity to the airport, a position with a view of the sea... along with many other aspects.
Also, take note of the kind of property you are buying: a residential (villa or apartment in the complex, etc.) or commercial (office, the mall or hotel...etc.).
One of the main factors is the condition of the building. Modern properties are more sought-after than older ones, or you can pick an older property and revamp it and get a decent investment return.
Real estate services when the home is part of the boundaries of a complex, it can be provided with additional amenities like a gym, pool, and green gardens, which will boost the return on investment.
Home features include exterior and interior finishes, other technologies like electrical appliances, and the intelligent home feature.
How to prevent loss when purchasing a property within Turkey?
Before purchasing a property in Turkey, an investor should look over the details mentioned earlier, including the location, type, benefits, and services associated with the home.
Profit As for the risk which could affect or even eliminate the investment return, Investors should stay clear of buying properties with issues like permits and the issue of titles... also never seek out the help of reliable experts to benefit from their experience.
To this end, Property Plus Company in Turkey provides you with advisory services and other services like airport reception to assist you in finding the most suitable property investment option and the best ROI.
An investment property that you want to purchase. Based on your preference, we will be there for you throughout the legal process after the sale, for example, taking the title deed and registering it with the web tapu.
