The return on real estate investment in Turkey
The return on real estate investment in Turkey is one of the most important features that motivate foreign investors to invest in Turkey, where there are many projects, including residential and commercial projects, which are distributed throughout the cities of Turkey.
Istanbul is distinguished from the rest of Turkey cities by the fact that the investment return from Istanbul real estate is very high and competitive not only at the local level but also at the European and international levels.
Real estate in Istanbul offers many opportunities with a huge investment return and guaranteed for several years up to 20 years in some projects.
The method of calculating the return on investment of a property is different according to the types of the investment, as in real estate investment the capital invested in the property remains the same and the value does not change, but on the contrary if you choose the right real estate opportunity, this may increase the value of the property, which means increase the capital, for example, in the case of investing in a property with a guaranteed investment return of 6% for 5 years, the investor receives 30% of the value of the property.
If the investment site is promising, that is, real estate prices are set to increase, the investor gets an investment return from reselling the property in that area, bringing the real estate investment return to between 70% and 100% of the value of the original investment.
There are many projects in Istanbul that offer real estate opportunities with guaranteed return on investment for many years, for example apartments and hotels in the Basin Express project: Hotel concept apartments, Rotana project in Istanbul
Investment return on commercial real estate in Istanbul
It is worth mentioning that the shops are considered as real estate that allows their owners to get Turkish citizenship, like any other real estate investment, if the foreigner owns a real estate that worth 250.000$, which means it is an opportunity for two advantages at the same time: to get a Turkish citizenship, and a profit by operating the shop or rent it out with a good return.
Commercial properties include:
- Shops are as diverse as other real estate, where there are many options that are very profitable as an investment opportunities.
- Warehouses are a very successful and sustainable investment as Istanbul is one of the most commercially active cities in the region.
- You can invest in hotels or hotel apartments that known for their long-term investment returns because of the high demand.
- Commercial offices that benefit from the investment return resulting from leasing to companies that are continuously established in the city with a developed economy.
- Construction companies are constructing office buildings very suitable for the real estate market in terms of space and services.
For more information about owning a shop in Istanbul, read the following article: Information about owning a shop in Istanbul
Investment return in residential property in Istanbul
The return on investment from residential properties is obtained in two main ways:
- Rent: Many foreign and local investors buy and rent residential properties in Istanbul. It should be noted that the rent in Turkey rises annually in varying proportions, and the rent of any property in Turkey increases by more than 10% annually.
- Resale: In many cases, under-construction properties are purchased for sale by the investor after the completion of the project and a high profitability.
Guaranteed return on investment in Turkey is one of the most important advantages of real estate investment, where a foreign investor can own a residential or commercial property with a guaranteed annual return up to 10% of the value of the property, and the profit return is generated from the rental of the property within the terms of the purchase contracts.
The demand for rent is steadily increasing in Istanbul, offering greater opportunities for investment with a guaranteed return. Also, according to the law, rent in Turkey is increasing by an annual rate calculated based on any property of any kind, which means an annual increase in investment return.
It should be noted the importance of choosing the location of the property whatever the purpose of buying it, especially in the case of investment to obtain a return on profit.