Turkey, a captivating country located at the crossroads of Europe and Asia, is a land with a rich history, stunning landscapes, and vibrant culture. Over the years, Turkey has emerged as a sought-after destination for both local investors and international investors looking to own a piece of this enchanting land.
Whether you are looking for a wonderful vacation home, a lucrative real estate investment, or a place of your own, Turkey offers a wide range of property types to meet diverse aspirations and needs.
How to Choose a Real Estate Investment in Turkey?
When choosing the type of real estate investment in Turkey, several factors must be taken into consideration.
Here are some tips that can help you make the decision:
1. Investment objective
Determine the main objective of your real estate investment. Do you want to rent the property and get a continuous monthly income, or do you aim to sell the property in the future at a profit? Defining a goal will help you determine the right type of investment.
Location is one of the main factors in choosing the type of real estate investment. Look for Turkish regions with strong population and economic growth and sustainable real estate development. The location should be close to public facilities and services such as schools, hospitals, shops, and transportation.
3. Real estate type
Determining the appropriate real estate type for an investment depends on your investment objective and budget. You can choose between residential apartments, villas, and commercial properties such as shops and offices. Residential apartments may be the most popular investment in Türkiye.
4. Price and financial return
Study the real estate market in the area you wish to invest in. Compare prices and future expectations of financial return. You can consult with local real estate agents or financial advisors for additional information and recommendations.
You should make your decision based on a thorough consideration of the above factors and based on your personal knowledge and investment objectives. It may also be a good idea to get recommendations from trusted people who have experience in real estate investment in Turkey.
Is Location Important in Real Estate Investment in Turkey?
Yes, location is a very important factor in real estate investment in Turkey (and anywhere else too). The presence of the property in a good location can have a significant impact on the return on investment and its real estate value. Here are some reasons why the site is important:
1. Demand and Supply
The demand for real estate is affected by the location. If the property is in a sought-after and popular area, you are likely to have a high demand for renting or buying it. Thus, the financial return on investment will be higher.
You should look at the location in terms of basic facilities such as schools, hospitals, shops, restaurants, and public transportation. Areas with developed infrastructure are usually attractive to residents, tenants, and buyers, thus increasing the value of the property and attracting investments.
3. Development potential
There may be future development plans in the area in which you intend to invest. Such plans may include building new facilities or improving infrastructure. If these plans are implemented successfully, this could increase the value of the property and raise the return on investment.
Therefore, it is important to consider the location when choosing a real estate investment in Turkey to ensure a good investment return and reduce potential risks.
When Should You Invest in Real Estate?
There is no specific time when investing in real estate in general, but we advise investors interested in investing in Turkey not to postpone the investment, but to invest as soon as possible, due to the continuous growth in the Turkish market, taking into account some of the things that we will mention here:
1. Economic timing
There may be periods of decline in prices in periods of economic recession, and experts consider it one of the best times to invest because, on the contrary, during periods of economic prosperity, prices may rise.
2. Personal goals
Before investing in real estate, define your personal and financial goals. Do you want to rent the property to get a monthly income, or do you want to invest to get a capital gain when you sell the property at a later time? Your investments should be in line with your personal goals.
3. Financial and legal advice
Before making any major investment decision, it is preferable that you consult a competent financial or legal advisor to provide professional advice and help you understand the financial and legal implications of real estate investment.
In the end, the timing of a real estate investment depends on many individual factors and surrounding circumstances. It is crucial to do good research and analysis before making any decision to ensure that the investment matches your goals.
Real Estate Investments in Turkey – Which Cities to Invest In?
Many cities in Türkiye are suitable for real estate investments. Among these cities:
Istanbul is a major economic and cultural capital of Türkiye. The city has an active and diversified real estate market that includes residential apartments, hotel apartments, and commercial real estate. Istanbul enjoys a privileged geographical location and great urban development, which makes it an attractive destination for investors.
It is located on the southern coast of Turkey and is a major tourist destination. Antalya has a mild climate and beautiful beaches, and it attracts many tourists annually. Therefore, investing in residential apartments, hotel apartments, and coastal villas may be feasible in this city.
Ankara is the political and administrative capital of Türkiye. The city is developing economically, with leading universities and a vibrant technology industry. You can consider investing in residential apartments, commercial offices, and commercial properties in Ankara.
It is located in the northwestern region of Turkey and is considered a tourist destination famous for the beauty of its nature. Bursa is an important industrial center and is experiencing rapid economic development. The city offers investment opportunities in residential apartments, villas, and commercial real estate.
These are just examples of some cities suitable for real estate investment in Türkiye. However, you should conduct thorough research and consult with local real estate experts to determine the best cities and areas for your needs and investment goals.
How to make money on real estate in Turkey in 2023?
There are several ways to make money from real estate in Turkey in 2023. Some of the strategies might include the following:
1. Renting out the property
You can rent out the property to tenants to make a monthly income from rentals. The rental market in Turkey is active and there may be a high demand for apartments and hotel apartments, especially in tourist and university cities.
You can buy a property and benefit from its increase in value in the long term, and then sell it later at a higher price. This can be achieved thanks to the growth of the real estate market and the increase in demand for real estate in Turkey.
3. Real estate development
You can buy a property in good condition and develop or improve it to sell it at a higher price. This strategy may require the ability to deal with contractors and interior designers and obtain the necessary licenses.
4. Renovation and Resale
You can buy properties at low prices and sell them at higher prices after they have been improved or renovated. This strategy may be profitable in neighborhoods that are experiencing rapid development and high demand.
5. Hotel investment
You can invest in hotel apartments or managed hotel units, where you can achieve returns from daily rents or monthly wages.
Tourist real estate: If you have a property in a famous tourist area such as Antalya or Bodrum, you can rent it to tourists and make good returns during the summer and peak tourist periods.
It’s important to conduct thorough market research, consult with professionals, and consider your risk tolerance and investment goals when deciding on the most suitable strategy for making money in real estate in Turkey. Additionally, stay updated on the latest market trends, regulations, and economic factors that can influence the real estate market in 2023.
Advantages of real estate investment in Turkey
Investing in real estate in Turkey has many advantages that make it an attractive option for investors. Here are some of the main advantages:
1. Continuous growth
Turkey is witnessing continuous growth in all sectors, including the real estate sector, driven by sustainable economic development and increased demand for real estate. This means that you can make good financial returns after selling the properties in the future.
2. The strategic location
Turkey occupies a vital geographical location between the European and Asian continents and has a favorable, moderate Mediterranean climate. Istanbul is also a natural gateway for trade between East and West. This location attracts investors and tourists alike, which leads to an increase in demand for real estate.
3. Citizenship and residence programs
In addition to the great support and flexibility in the laws in Turkey for real estate investment and low rates of real estate taxes compared to other countries, investment programs are offered such as the Turkish citizenship program and long-term residence programs. These programs provide an opportunity to easily obtain Turkish citizenship or long-term residency by investing in real estate.
4. Domestic and tourist demand
Turkey attracts many tourists and internal migrants, which means that there is a huge continuous, and growing demand for apartments, villas, and real estate in general, and for residential and commercial rents. You can rent real estate to residents or tourists and generate regular returns.
5. Diversity of real estate
Turkey provides a variety of real estate for investment, from apartments and hotel apartments to villas and commercial real estate.
Tips to make a profit from real estate investment
Here are some important tips when investing in real estate in Türkiye:
1. Research and analysis
Before investing, conduct the necessary research and analysis to understand the real estate market in Turkey and the region in which you wish to invest. Study the market, demand and supply, and trends. You can use local real estate experts for advice and guidance.
Choose the location carefully. Look for areas that witness economic and urban growth, and enjoy the availability of basic facilities and services. Visit the site for yourself and assess the surroundings and nearby features such as transportation, commerce, and tourism.
3. Price and Value
Compare prices and value provided. Don’t buy a property based solely on the low price, but evaluate the actual real estate value and potential return on investment.
4. Law and legislation
Learn about laws and legislation related to real estate investment in Turkey. Make sure you understand the legal procedures and taxes related to the purchase and real estate ownership.
5. Legal and financial advice
Consult with a professional lawyer and financial advisor before concluding any real estate transaction. They help you understand contracts and terms, and ensure that your rights as an investor are protected.
6. Maintenance and management
Evaluate the costs of maintenance and future management of the property. Make sure you have a plan in place to maintain and manage the property effectively, whether you intend to rent it out or sell it at a later date.
Connect with trusted real estate agents, developers, lawyers, and financial advisors. This will help you obtain more correct and accurate information about investment opportunities and real estate developments in Turkey.
The real estate market in Turkey is a treasure trove of diverse real estate types that cater to a wide range of preferences and investment goals. From Istanbul’s vibrant cityscapes to tranquil coastal towns and picturesque countryside, Turkey offers a captivating array of properties just waiting to be explored.
Edited by: VAAL Real Estate