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Feb 5, 2023

Is it Better to Invest in Expensive Areas or Cheap Ones?

Turkey is considered a fertile real estate investment environment, with constant annual investment returns that guarantee the investor’s profits, annually. Real estate areas’ types vary according to their closeness and remoteness from the city center, which plays a significant role in terms of their price, return, and extent. In fact, real estate areas are classified according to two types: high prices with quick returns and remote areas with low prices and long-term returns. 

New investors become confused when buying a property in Turkey, between high prices areas or low ones, how do get high returns? And how to choose the area and property they intend to invest in? 

In this article, we are talking about types of real estate investment, and how to earn short-term returns according to the area. And to earn high-returns according to the investor's need and desire.

Related articles:

First: Types of Real Estate Investment:

Real Estate Investment, in Turkey, is Three Types:

Land Investment, which is two types:

  1. Investing in agricultural lands.
  2. Investing in lands licensed for construction.

Investing in a residential property, also has 2 types:

  1. Residential apartments.
  2. Villas.

Investing in commercial real estate, which is 3 types:

  1. Real estate for tourist rent. 
  2. Commercial offices.
  3. Shops.

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Second: Real estate investment according to prices:

Investing in high prices areas:

This is usually in city centers. The advantage of investing in these areas is that it keeps their prices stable and sell quickly. For example, if someone bought a property for $500K, in Taksim it will be sold quickly and it will also keep its price. 

Investing in low prices areas: 

These are areas that are far from the city center and on the outskirts, or that have not been fully served, such as hospitals, metro lines, and public transportation.

Investing in these areas has higher returns, but it has a risk, which is represented in the delay in the arrival of the services. For example, the investor is told that the metro line will reach the region two years later, but when the metro line is delayed for 4 years, the profit of the project is delayed for 4 years, as well. 

In this case, we advise the investors to invest in areas with low services, while studying the actual arrival of services to the area, through municipalities and state departments. Be aware of falling into the trap of the non-expert real estate marketers who tell the investor that the area will become serviced after a certain period.

We, at Akarkom International Company, provide this service to our clients by bringing all the related documents from municipalities and government departments. Reach out to us by clicking here. 

Third: How to make a real estate investment with a higher profit?

  • The area in which investor wants to invest in.
  • The location of the project and the services around it.
  • Advanced infrastructure and closeness from public transportation.
  • Re-renting or selling the property with high returns.
  • The main goal of the investment.

Fourth: The most important real estate investment areas in Turkey

According to the Anadolu Agency, the real estate sector in Turkey recorded an increase in the number of housing units sold to foreigners by 45.1%, during the first quarter of 2022, compared to the same period in 2021.

1- Istanbul:

Istanbul is a powerful investment center, due to its economic, cultural and tourist importance. It is a first investment destination for investors from inside and outside Turkey. Among the most important areas of Istanbul for real estate investment: Beylikduzu, Basaksehir, Esenyurt, Sisli, Basin Express and others.

2- Antalya:

Antalya is considered one of the most important coastal tourist areas in Turkey, which has increased investors' demand for real estate, as it is one of the first destinations for tourists.

3- Bursa:

Bursa is the fourth largest city in Turkey. It is characterized by its charming nature, and its strategic location overlooking the sea with a developed infrastructure. It is a fertile environment for real estate investment, as it is considered one of the most important economic centers of Turkey. 

4- Ankara:

Ankara is characterized by its distinguished geographical location. Real estates in Ankara are of special forms that make them different from real estate of the other Turkish cities, due to Ankara’s stunning view of the beautiful landscapes, in addition to the unique decoration that adorns its real estates, the high ceilings of its houses, and the stairs with special architectural shapes.

5- Izmir:

Izmir is the third largest Turkish city in terms of area and population. It has a wonderful view of the Aegean Sea. Besides, it contains many important tourist and archaeological attractions, including: Izmir Archaeological Museum, the remains of the city of Agora that goes back to the Greek era, and the ancient city of Efes.

6- Trabzon:

Trabzon is characterized by its unique view of the Black Sea, due to its picturesque nature known for its greenery landscape and mountains extending as far as the eye can see. It is considered a tourist destination par excellence. Due to the increase of demand on real estate in Trabzon, the commercial and construction movement increased as well, which made its real estate value increase in general. Thus, this indicates a bright future for real estate investment in Trabzon. 

In brief, investing in long-term returns projects has high profits and high risk. In case the investors prefer short-term returns and speed selling without risk, we advise them to invest in the city center, where services are available and property can keep its price.

Normally, clients prefer to buy in the city center for the purpose of living, not investing. In case of investing, they prefer the outskirt of the city.

We can take Beylikduzu, Basaksehir, Büyükçekmece, Basin Express as examples, during the last 3 years, these areas lacked services, yet nowadays they are developing fast which increased demand on them, in turn, the prices of real estate there have increased as well. As for examples outside Turkey, in Egypt, the administrative capital area was remote, after services arrived, all those who invested in the region had profits between 150% to 200%. 

Likewise, in Dubai, the silicon area was very cheap, yet now it is very expensive.  All investors know this information well, but it can be useful for new investors.

We are ready to answer all your inquiries, so do not hesitate to contact us via WhatsApp, please click here.





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