Types of real estate investment in Turkey

2021/10/01
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Types of real estate investment in Turkey


Turkey is the suitable and appropriate environment for real estate investments, and this is what prompted many people and investors around the world to choose it rather than all other countries in the world, and in this context we must know that when the investor chooses Turkey, he will have many real estate options. And because this topic is important to many, we decided today to accompany you in the following article in order to get acquainted with the types of this investment, its advantages and disadvantages. 


-These are the most important types of real estate investment in Turkey, get to know them: 

1- Commercial real estate investment: 

Its main features: 

First of all, we must know that commercial real estate has high profits, and one of the most important advantages of investing in it is that the property owner will not have to deal with the tenant or bear the costs of repairs and modifications that the property needs, as the tenant is the one who bears them, because he will make the modifications that are compatible with his project. 
Also, the landlord will not suffer from the tenant’s failure to pay the rent incurred by him, because in most cases the financial condition of the commercial real estate tenants is good. 
Most of the contracts that are organized between the property owner and the tenant are for a long period, sometimes extending up to 6 years, and thus the property owner will ensure that he receives profits during this period.


Its main drawbacks: 

Despite all the advantages of investing in these real estates, they have some negative aspects, most notably that they require high capital. 
In the event of an economic circumstance or other problems, the tenant will leave the property and it will remain free of tenants, and the property owner will incur material losses, as he will have to cover the costs of water, electricity, maintenance and many other matters arising from the property. 
If the property has some defects, then it is difficult to find tenants, so in this context it is advised when choosing it to adhere to the basic criteria, such as being located near the main roads and occupying strategic locations within the city in which it is located. 
In the event that the owner of the property wants to sell it, there is a difficulty in this because there is little demand for the purchase of commercial real estate due to its high price. 


2- Residential real estate investment: 
Its main advantages: 

Its profits are guaranteed because residential real estate in Turkey is rarely empty of tenants, based on its large population and because these numbers are constantly increasing, because it is a destination for many groups such as students, businessmen and tourists. 
The real estate will not be empty of tenants, because the human desire to search for a place to live is uninterrupted, and with a simple return to the investment rule that says that the best investment is with a material that society needs, we make sure that residential real estate is the best choice. 
If the owner of the property wishes to sell it, this is a simple matter, especially if it is characterized by typical specifications in terms of location, area, view, and the like of these details. 
In this context, it is preferable for the property to be of a small area, as this type of apartments is more demanded than the large areas.


Disadvantages of investing in a residential property: 

The landlord will have to deal with the tenants directly and work to solve his problems and fix some details of the property that cause them harm. 
It will also incur material losses if the tenants damage the property, in addition to the fact that some tenants fail to pay the rent on time. 


3- Investment in tourist real estate: 
Its main features: 

The importance of its investment stems from the country’s tourist nature and its attraction of large numbers of tourists annually, and these properties are meant to be hotels, which are the tourist’s choice during his time in Turkey, and there are restaurants and cafes that are frequented by tourists and local residents alike. 
This type of real estate comes with high returns, especially in the tourist seasons, although it was chosen according to fixed rules, the most important of which is the good selection of the site and specifications, as it should keep pace with modernity. 


Disadvantages of investing in tourist real estate: 

It is one of the least negative investments, but in the non-tourist seasons, the percentage of profits is somewhat lower. 
It is important to realize that the main factor in its success is the location, so it is preferable to be close to the tourist attractions or within the tourist states. 
Why is Turkey suitable for real estate investment in Turkey in all its forms? 
Because it has all the criteria and tools for its success, most notably the developed economy and political stability, in addition to the advanced infrastructure and the many facilities provided to the real estate sector. 
So, investing in real estate in Turkey is not limited to one option, but rather has multiple options, and it will record success and high profits based on the components of this country and if all the standards and advice that were presented in this regard are adhered to. 
Real estate investment in Turkey is one of the safe steps that many investors around the world resort to. 

 

Related Articles :

1- Buying an apartment in Turkey 2021.
2- What about owning real estate in Turkey.
3- Turkish citizenship is a target for investors.
4- An overview of the real estate market in Turkey.
5- Advantages of buying real estate in Turkey

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