Is real estate investment one of the best investment opportunities in Turkey?
Real estate investment is one of the best investment opportunities in Turkey, given that the real estate sector is one of the largest growing and profitable sectors in Turkey and worldwide, and due to the fact that Turks trust real estate investment even more than they trust in gold.
Three Turkish cities have already experienced astronomical property price growth, leading the Knight Frank's Global Residential Cities index of global home prices. House prices in 150 cities around the world increased by 3.4% in the second quarter of 2020 compared to the same period in 2019, according to the index published in October 2020.
In fact, strong growth in some countries, notably Turkey, led the entire index, with astronomical price growth in three Turkish cities leading the entire index. The Turkish port of Izmir, the country's third-largest city by population, saw house prices rise by 28.1% during 2020 till June, followed by Ankara, the capital, with a growth of 26.4% and Istanbul with a growth rate of 20.2% year-on-year.
Several factors contributed to the rise in real estate prices, including strong demand, large population growth, and declining supply. The low price of the Turkish lira has also helped attract foreign interest in Turkish real estate, especially among Gulf buyers, according to Knight Frank.
The most profitable real estate projects
Buying a rental apartment in Turkey
The idea of buying a rental apartment in Turkey is gaining great popularity, as it is a secured, money-generating real estate project that brings quick and lasting benefits to the investor.
The value of the rent varies according to the features of the apartment, its total area and its location. Moreover, Turkish law imposes an annual maximum rental increase. The value of this increase is issued on a monthly basis.
Many factors have contributed to the boom in investment in rental apartments in Turkey, including the increasing number of Turkish students studying in other cities, foreign students in public and private universities, and the increasing number of foreign students who obtained Turkish scholarships who need apartments in Turkey. As well as the increasing number of families that move to Turkey for work or residence from several countries worldwide, especially the Arab countries.
Home Office apartments
Home office apartments are often in (1 + 0), (1 + 1) or (2 + 1) styles. They are most often at an affordable price and they are easy to rent, especially nearby universities, hospitals, trade fairs and industrial areas.
Home offices can be rented out for housing, and they can also be used as company headquarters, a medical clinic or a commercial office. This pattern is especially prevalent in Cumhuriyet, Maslak, Basin Express and Kagithane in Istanbul.
Investing in guaranteed return projects
Investing in guaranteed return projects is a distinctive system for those looking for a guaranteed return for investment for specific periods provided by
Some construction companies offer their clients the choice of investing in guaranteed return projects within various residential, commercial or hotel apartments. Moreover these properties are also valid for real estate residence or Turkish citizenship.
The most common type of guaranteed return projects are:
Rental return guarantee: It is a system that guarantees you obtaining a specified percentage of the total price of the property, ranging from 5% to 8% annually, for a specified period, usually ranging from one to five years, depending on the project.
Repurchase guarantee: Here the construction company guarantees that they repurchase the property from the customer after a specified period, usually three years, at a profit rate ranging from 25% to 40%.
Erecting residential project on land plot
Buying, building, and reselling land is a feasible real estate investment especially if the land is in a strategic location or near vital centers. It is recommended to visit the land site, explore the surrounding areas, consult specialized experts, and avoid false and deceptive advertisements.
Buying an apartment in Turkey and reselling it
Buying and reselling an apartment, is a successful real estate investment, especially when choosing the apartment near the vital service facilities that contribute to the price increase, such as its proximity to metro stations, highways and transportation, as well as malls and shops, in addition to its proximity to schools, universities and hospitals.
The great growth in real estate prices that Turkish cities witnessed last year supports such a decision, as Izmir witnessed a rise in house prices by 28.1% during the year 2020 until June, followed by Ankara, with a growth of 26.4% and Istanbul with a growth rate of 20.2% on an annual basis.
Investing in rental offices and shops in Turkey
The success of investment in rental offices and rental shops in Turkey depends on many factors, including the location of the property, which must be chosen very carefully, the area's population. You are advised to choose the location of the shop in a central market or a shopping mall, or near transportation, metro lines, or public facilities and services.
Akarkom International offers several pre-rented stores by major Turkish brands such as BIM, SOK, and LC WAKIKI, with annual rental guarantee starting from 5% for several years.
Investing in student housing in Turkey
Investing in student housing is one of the most successful investments in Turkey, due to the steady increase in the number of public and private universities in the Turkish cities in general, and in Istanbul in particular. This assures the urgent need to establish new student housing centers to accommodate the increasing number of Turkish and foreign students. Therefore, investing in student housing is a very profitable investment.
Buying hotels or apartments in Turkey
With the great boom in the tourism sector in Turkey, major businessmen and investors from around the world, especially Arab and Gulf investors, want to buy and invest hotels in Turkey. Many factors help the success of this investment, including good choice of hotel location near the seaside, tourist and archaeological attractions, and public transportation.
Expected profits as a result of real estate investment in Turkey
The value of real estate in Turkey increases every year. The fast-growing real estate sector in Turkey provides profitable investment returns for investors, according to local and global statistics.
How to choose a real estate investment in Turkey
The investor must conduct a detailed economic feasibility study before making the final decision about real estate investment in Turkey. The study includes the type of preferred real estate investment projects, the date of construction of the project. Moreover, investment in new under construction projects gives a greater opportunity to obtain competitive prices and achieve abundant profits upon completion of the project.
The importance of location in real estate investments
The location of the investment project has a great importance in terms of the financial return of your investment. The increase in the price of your property is often related to its location nearby transportation, metro or metrobus stations, or shopping centers, schools, hospitals, bridges, markets, airports and universities.
The best time to invest in real estate in Turkey
The real estate investment market in Turkey is witnessing a great movement in the four seasons. Some real estate developers offer attractive installment offers and big discounts upon the initial announcement of their projects and in the early construction stages.
We advise you, as a buyer or as a real estate investor, to communicate continuously with real estate consultants in Akarkom International to provide you with the latest special offers so that you can choose the right home and feasible real estate investment, as the house that you may find suitable for you today in terms of price and space may find better than it and at a lower price tomorrow.
It is also recommended to buy real estate in Turkey in winter and autumn, due to the relatively increase in real estate offers at these two seasons, especially with the influx of tourists and real estate investors to Turkey in the summer and spring with a greater proportion.
The most suitable cities for real estate investment
To achieve the largest possible profits in real estate investment, choose the most appropriate city for real estate investment. Foreigners especially want to invest in Istanbul, followed by Antalya, Izmir, Bodrum, Bursa and Trabzon.
Akarkom International offers a various opportunities, including apartments and shops with profitable investment returns, with rental guarantee, and we also have attractive offers and various packages for customers looking to obtain Turkish citizenship.
For more details about the real estate investment market in Turkey, we invite you to view Turkey’s home sales report 2015 - 2020 prepared by Akarkom International, which shows real estate sales in Turkey between September 2015 and August 2020, where residential real estate sales in Turkey exceeded 7 million homes. During the past five years, as locals bought 6.9 million homes while foreigners bought 154,871 homes.