Introduction

Real estate investment in Turkiye presents a viable path to profitability, especially for those seeking to diversify their portfolios. This comprehensive guide aims to equip investors with the necessary knowledge and insights for successful ventures in the Turkish real estate market.

What Is Investment Real Estate in Turkiye?

Investment real estate in Turkiye encompasses properties purchased for revenue generation or investment purposes, including residential, commercial, and mixed-use properties.

Types of Investment Properties in Turkiye

• Residential: Popular choices like single-family homes, condos, apartments, and townhomes.
• Commercial: Business-focused properties like commercial buildings, which may offer higher returns despite potential for more maintenance.
• Mixed-Use: Combining commercial and residential purposes, like a residential building with a retail store on the ground floor.

Simple Ways to Invest in Real Estate in Turkiye

Rental Properties

Owning rental properties suits individuals with DIY skills and patience for tenant management. It requires substantial capital for maintenance and vacancy periods.

Real Estate Investment Groups (REIGs)

REIGs function like mutual funds for real estate, ideal for those seeking rental property ownership without management responsibilities.

House Flipping

Suitable for experts in real estate evaluation, marketing, and renovation, house flipping involves buying and quickly selling properties for profit.

Commercial Real Estate

Investments in commercial spaces like stores and warehouses offer higher profitability compared to residential properties but require unique management skills.

Benefits of Investing in Turkish Real Estate

Returns on Investment

As the tourism industry flourishes in Turkiye, more investors start to consider Turkiye’s real estate as an attractive opportunity. Real Estate Real estate in Turkey can provide annual profits from investment returns earned through sale or rental, which can reach up to 12% of the initial value of the property. So if you think about investing in the real estate market we highly recommend Turkiye, a stable country with prosperous potential.

Obtaining Turkish Citizenship

Owning a $400,000 property, whether an apartment, office, villa or business, might qualify an investor for Turkish citizenship under favourable circumstances. This has proven to be a powerful inducement for investors coming from insecure nations to invest in Turkish real estate. The Turkish government has taken this issue seriously and simplified the process for investors seeking citizenship.

Governmental Support For Real Estate Sector

Several initiatives were put in place to attract more real estate investment. As the President commanded, certain real estate companies, for example, have completely removed interest rates. Furthermore, the down payment for purchasing property in instalments was cut from 25% to 20%. Foreigners and expats who purchase real estate in Turkey are likewise excluded from paying VAT.

Affordable Property Prices in Turkey

Turkey’s cheap apartment prices attract investors compared to many European countries. In Istanbul, for example, a modest apartment under construction costs around US$100,000. This apartment will make a good profit when sold after completion. However, a cheap apartment does not mean low quality. The construction and facilities can be high-class.

Risks of Investment Real Estate

The real estate market, like any other market, has its ups and downs. Consider the housing market crisis that broke out in 2008. The crisis was founded on the mistaken belief that the value of rental properties always rises. However, this is not the case. Although real estate tends to gain over time, it can deteriorate (which happens quite often). Real estate investors who don’t realize this are more likely to take on too much risk in their investments.

Invest with Prestij Consulting

Prestij Consulting offers expert guidance for those looking to invest in Turkish real estate, assisting with property selection to final transactions. Investing in real estate in Turkiye offers a mix of diversification, passive income, and tax advantages. However, it requires careful financial planning and market understanding. For expert advice and investment opportunities, visit Prestij Consulting’s blog.