In an era marked by economic uncertainty and evolving investment strategies, astute investors are constantly seeking new avenues to diversify their portfolios and secure sustainable returns.
Investing in land holds tremendous promise, transcending the conventional limitations of location and market volatility. As the global population continues to grow and urbanization expands, the demand for land reaches unprecedented levels, driving up its intrinsic value. From agricultural land offering vast potential for food production to commercial and residential land brimming with developmental prospects, the possibilities are boundless.
In this article we will shed some light on land investments:
The benefits of investing in lands
Investment opportunities are common. You can invest in real estate, bonds, stocks, and more. But investing in the land has unlimited benefits. The land is a visible investment, an asset whose value increases over time.
Land ownership provides owners with financial security and satisfaction. Growing Demand because it generates passive income provides income opportunities, and allows investors to double their capital with little risk. Moreover, it is a limited resource that can strengthen your investment portfolio. Investing in real estate with a well-planned strategy can help you make a profit and grow as an investor.
Investing in land correctly can yield excellent returns if you know the risks and pitfalls of it. The land is an immovable asset giving owners peace of mind. These are important reasons why buying land is a great investment and will help you grow faster as a real estate investor.
Investing in lands in Turkey
Turkey is considered one of the best destinations for land investments. Land investment in Turkey can be an attractive option for both domestic and foreign investors. Turkey is known for its growing economy, strategic location, and favorable investment climate.
The real estate market in Turkey is also considered one of the largest active markets in the region, as it enjoys a wide variety of available real estate. Turkey includes major cities such as Istanbul, Ankara, Antalya, Bodrum, and others, and is characterized by the availability of a variety of lands, whether for housing or commercial investment.
In this article, we will discuss all aspects related to land investment in Türkiye.
The law of investment in Turkey for foreigners
The Turkiye regulatory environment is very business-friendly. You can set up a company in Turkey regardless of your nationality or place of residence.
A company can be set up in just one day by submitting an application with the required documents and a tax return to the competent registry.
According to the UNCTAD Global Investment Prospects Survey 2008-2010, Turkey’s booming economy makes it one of the most attractive destinations for foreign direct investment (FDI) in the world.
Below are the rule and regulations for foreign investment in Turkey:
a) Freedom to Invest and National Treatment:
Unless stipulated by international agreements and other special laws:
1. Foreign investors are free to make foreign direct investments in Turkey,
2. Foreign investors shall be subject to equal treatment with domestic investors.
b) Expropriation and Nationalization:
Foreign direct investments shall not be expropriated or nationalized, except for public interest and upon compensation in accordance with due process of law.
Foreign investors can freely transfer abroad: net profits, dividends, proceeds from the sale or liquidation of all or any part of an investment, compensation payments, amounts arising from license, management, and similar agreements, and reimbursements and interest payments arising from foreign loans through banks or special financial institutions.
d) Access to Real Estate:
Companies may freely acquire real estate or limited rights through a legal entity in Turkey established or with participation by foreign investors, provided such acquisitions are permitted for Turkish citizens.
e) Dispute Settlement
For the settlement of disputes arising from investment agreements subject to private law and investment disputes arising from public service concessions contracts and conditions which are concluded with foreign investors, foreign investors can apply either to the authorized local courts or to national or international arbitration or other means of dispute settlement, provided that the conditions in the related regulations are fulfilled and the parties agree thereon.
f) Valuation of Non-Cash Capital
Non-cash capital is valued within the regulations of Turkish Commercial Law. In case stocks and bonds of companies established abroad are used as foreign capital shares of foreign investors, the values determined by the relevant authorities in the home country, or by the experts designated by the courts of the home country, or any other international institutions performing valuations will be accepted.
g) Employment of Expatriates
Work permits are issued by the Ministry of Labour and Social Security for foreign personnel to be employed in the companies, branches, and entities established within the scope of this Law.
h) Liaison Offices
The Undersecretariat is authorized to permit foreign companies established under the laws of foreign countries to open liaison offices, provided that they do not engage in commercial activities in Turkey.
We assist individuals and organizations wishing to invest in Turkey by providing information on the legal environment related to foreign investment & foreign Law.
How to invest land
Buying land in Turkey is one of the best investments that can be made if you buy land in a good place at an excellent price and invest it properly, and to do that you have to set a specific goal for your purchase of the land and work on it to find suitable land for you and your investment, and finding Suitable land is the most difficult work because Turkey contains a huge number of salable lands, but not all of them are suitable for investment in one field VAAL Real estate can assist you in this mission, and we will explain the types of lands in Turkey and the appropriate way to search for suitable land.
Land types in Turkey
There are several different types of land in Turkey, each with its own legal and investment advantages, and land types vary by municipality and state. There is no uniform title deed for all land types in Turkey as each land type has its property rights. Things to keep in mind before buying land.
Types of land in Türkiye
- Agricultural lands.
- Residential lands.
- Investment industrial lands.
Each type of land is explained to provide those who want to buy land in Turkey for housing, agriculture, or investment with all the necessary information.
Agricultural lands in Türkiye:
Turkish farmlands are spread throughout the Republic of Turkey and are considered to be one of the best soil types in the world, with excellent soils suitable for growing all kinds of crops. Turkey’s climate is one of the most important factors for agricultural investment, especially since Turkey is located between two different continents, Asia and Europe, and the variety of crops in Turkey and the large number of farms in the country’s Regions give Turkey additional advantages. Its inhabitants are interested in agriculture and developed countries including Istanbul and northern Turkish provinces such as Lisa, Trabzon, Ayder, and Samsun, central Turkish provinces such as Adana, southern Turkish provinces such as Mersin and Antalya, and these three regions of her far away from Due to the vastly different climates, the types of plants grown are also different. Land prices also vary greatly between these states.
If you buy agricultural land in Turkey, you should know that you cannot build on it and it will be registered with the land title. It is farmland titled “Bahche Tallulah”. This means that it is intended only for agriculture and not for any kind of development, except for some places where wooden houses are allowed to be built within agricultural land, but the area is small and the situation varies. shall not exceed 15% of his site area, although this varies by state and local government. Therefore, if you are considering buying land in Turkey, you should inquire about the type of land, the possibility of building on it, as well as how enough space for construction will be allocated.
Residential lands in Türkiye:
Residential land in Turkey is on which a large area of housing projects can be built, subject to the permission of the municipality of the region where the land is located. Purchasing residential land is an excellent investment for investors with suitable budgets as it allows them to purchase buildings and construction sites to build their projects. As these are residential properties sold on an apartment basis, the returns are very high compared to other investments. However, you need to be careful about which regions you can build in.
Industrial and investment lands in Turkiye:
It is one of Turkey’s most important land types as it provides vast tracts of land suitable for building factories and industrial facilities that help strengthen the Turkish economy by increasing production capacity. Therefore, buying industrial land in Turkey is unique and desirable for foreigners, especially in developed countries. The Turkish government will facilitate investors to transform it into a productive and export economy, reduce imports and work to encourage them to build industrial plants which leads to the strength of the Turkish economy. If you want extra profit don’t hesitate to contact VAAL and invest.
The best investment opportunities in Turkey
Turkey has been a good alternative for investors in recent years with its geographical, economic, and demographic structure. Current economic policies are shaped around the promotion and support of foreign investment. In this context, many innovations have been made in the foreign investment legislation that makes investment attractive in Turkey and make the investor’s job easier.
The Istanbul Canal project is one of the best investment opportunities in Turkey where you can make a handsome profit in a comparatively short time, this project offers a wide range of options suitable for all budgets and plans, you may contact VAAL real estate and they will prepare the perfect investment opportunity just for you.
Investments in Arnavutkoy in Istanbul
Arnavutkoy region is one of the best investment destinations in Turkey in recent years as it is an incubator for the largest investment projects to be implemented in Istanbul such as Istanbul Canal Project, New Istanbul Airport III Project, and New Istanbul Bridge III.
Arnavutkoy is a charming countryside in the European part of Istanbul overlooking the Black Sea. The stunning location attracts visitors who enjoy the coast.
This area has one of the largest beaches on the Black Sea, with a total length of 22 km. There are restaurants, cafes, and tourist hotels known for their seafood cuisine on the beautiful beaches and many tourists who love delicious food visit.
One of the most important features of the Arnavutkoy region is the abundance of large and small factories. Most important are the textile factories, which represent one of Turkey’s most important industrial sectors in terms of production, exports, and labor force. The Turkish government is striving to develop the region by launching investment projects that are said to be an important factor in attracting investors to neighboring regions, especially through the construction of hotels and tourist facilities. As a result, real estate values continue to rise.
Land types in Arnavutkoy in Istanbul
Arnavutkoy is one of the largest areas in Istanbul, with an area of 453 square kilometers, and a population estimated at about a quarter of a million people.
The Arnavutkoy area is distinguished by its simple rural nature, far from the city’s noise, crowding, and pollution. It is also considered the main source of freshwater that feeds the city of Istanbul.
Its rural character did not prevent it from providing all services to its residents, such as government and private hospitals, educational and cultural centers, and shops that provide them with all their needs and supplies.
It encompasses a variety of land types, including:
- Residential Areas: Arnavutköy has several residential neighborhoods with single-family houses, apartment buildings, and gated communities. These areas are primarily designated for housing purposes.
- Agricultural Land: Arnavutköy has a significant amount of agricultural land, particularly in its rural areas. These lands are used for farming and cultivation of various crops such as wheat, corn, vegetables, and fruits.
- Industrial Zones: Arnavutköy has industrial zones and parks where manufacturing and industrial activities occur. These areas are designated for factories, warehouses, and other industrial facilities.
- Commercial Areas: Along the main roads and in the town centers of Arnavutköy, you can find commercial areas with shops, markets, restaurants, cafes, and other businesses catering to the local population.
- Waterfront Areas: Arnavutköy is located along the shores of the Black Sea and has waterfront areas with beaches, marinas, and fishing facilities. These areas offer scenic views and leisure activities.
It’s important to note that land use in Arnavutköy can vary, and there may be overlaps between different land types. The specific distribution and characteristics of these land types can change over time as urban development and infrastructure projects progress.
Buying land in Turkey
Buying land in Turkey gives you a blank canvas to paint your dream estate on. For someone with a clear concept, starting from scratch can be very appealing. Land for sale in Turkey usually comes with planning permits and road access, water, electricity, and gas connections.
Depending on where you are looking, land may be scarce and difficult to obtain. As more and more investors acquire valuable land in Turkey, there are only a limited number of coastal parcels and prime central plots left, leaving less time to build properties.
Buying land in Turkey can be a straightforward process for both Turkish citizens and foreigners. Here are some key points to consider when purchasing land in Turkey:
- Foreign Ownership: Foreigners are generally allowed to purchase land and property in Turkey, subject to certain restrictions and regulations. However, it’s essential to check the latest regulations and any specific limitations that may apply to your country of citizenship.
- Property Types: Land in Turkey is classified as agricultural, forest, or urban land. Each type has its own rules and restrictions on ownership and usage. It’s important to determine the classification of the land you intend to purchase and understand the associated regulations.
- Military Zones: Some areas in Turkey are designated as military zones or have military restrictions. It’s crucial to conduct due diligence to ensure that the land you are interested in is not within such restricted zones.
- Title Deed (Tapu): The title deed is an official document that verifies ownership of the property. When purchasing land, it’s important to ensure that the title deed is legally registered and free of any encumbrances or disputes. You should consult a qualified lawyer or real estate professional to handle the transaction and verify the legality of the title.
- Real Estate Agents and Lawyers: Engaging a reputable real estate agent and a lawyer with expertise in Turkish property law is highly recommended. They can guide you through the buying process, handle the necessary paperwork, conduct title deed searches, and ensure a smooth and secure transaction.
Remember, this information serves as a general guide, and it’s important to seek professional advice and consult relevant authorities to ensure compliance with the latest regulations and requirements when buying land in Turkey.
Investing in residential lots
Investing in residential lots is a popular and feasible option in Türkiye. Here are some of the reasons why residential land investment is attractive:
1. High demand: Türkiye is witnessing continuous population growth and an increase in housing demand. Thus, investing in residential land can be an opportunity to take advantage of this growing demand and meet the housing needs of local residents and foreign investors.
2. Urban development: Turkish cities such as Istanbul, Ankara, and Antalya are witnessing rapid urban development. Thus, residential land in emerging areas may increase in value with the development of surrounding infrastructure and services.
3. Leasing: You can invest and rent residential lands to local residents or to tourists and investors for the short or medium term. This type of investment can provide sustainable investment income.
4. Increase in value: The real estate market in Turkey may witness an increase in value in the long term. Thus, investing in residential land may give you the opportunity to realize a return when selling the land at a later time.
However, you must take into consideration some important factors such as location, physical layout, and local laws and regulations related to real estate investment.
Buying farmland as an investment
Many foreigners want to invest in agriculture and buy farmland as an investment in Turkey, so foreign investors are wondering about the possibility and benefits of such investment.
Buying farmland as an investment can be an attractive option for various reasons.
Here are some key considerations when purchasing farmland as an investment:
1. Location: The location of the farmland is a critical factor in determining its investment potential. Consider factors such as proximity to markets, transportation infrastructure, water availability, climate suitability for crops, and local agricultural practices. Researching regional agricultural trends and understanding the demand for specific crops or livestock in the area can help you make an informed decision.
2. Land Quality and Productivity: Assess the quality of the soil, fertility, and water resources on the farmland. High-quality land with good productivity potential is likely to generate better returns on investment. Conduct soil tests and seek expert advice to determine the land’s agricultural suitability for your intended use.
3. Farming Expertise: Evaluate your own farming knowledge and experience or consider partnering with professionals who have the necessary expertise in agriculture. Efficient and knowledgeable management is crucial for maximizing the profitability of farmland investments.
4. Diversification: Farmland can be an effective diversification tool in an investment portfolio. It has the potential to provide stable returns and act as a hedge against inflation, currency fluctuations, and stock market volatility. Diversifying across different types of crops or livestock can further mitigate risk.
5. Long-Term Investment Horizon: Farmland investments typically have a long-term investment horizon. Agricultural activities can take time to generate returns, and land values tend to appreciate gradually over time. Patience and a long-term perspective are key when considering farmland as an investment.
6. Legal and Regulatory Factors: Familiarize yourself with the legal and regulatory framework governing farmland ownership and operations in the country or region where you plan to invest. Understand the land tenure system, leasing regulations, environmental regulations, and any restrictions on foreign ownership, if applicable.
It’s crucial to consult with experts such as agricultural economists, local farmers, real estate professionals, and legal advisors to ensure that you make informed decisions and navigate the complexities of farmland investments successfully.
Land investment presents a compelling opportunity for investors seeking long-term growth and stability. As we have explored throughout this article, the demand for land continues to rise, driven by population growth, urbanization, and various economic factors. This sustained demand positions land as a valuable and resilient asset class with the potential for substantial returns.
Edited by: VAAL Real Estate