In Turkey, which has become an investment center par excellence, especially in recent years, investors' trends are many and various. Some of the investors prefer to invest in apartments, be that ready-made or still under construction, others prefer to invest in commercial shops and they have a strong point of view in this regard. However, each approach has its own possibilities of success that depend on definite factors. Given the remarkable vitality and success that the real estate market is witnessing in Turkey in general and in Istanbul in particular, it can be said that Turkey has become a country that attracts investors from all over.
To some, real estate investment in commercial shops is one of the best ways to invest in Turkey, which even exceeds the investment in apartments in terms of yield and profit. The prices of shops in Turkey are rising rapidly to become higher than the prices of the apartments. Furthermore, commercial shops have a higher rental income and lower maintenance costs than residential properties in the long run. It is worth noting that the value of shops increases with the increase in the services and facilities that surround the area. For example, if the shop is in one of the new cities, its value will increase along with the increase of social services, transportation, and facilities surrounding it in the area.
Those interested in investing in a commercial shop in Turkey can easily find distinctive options to purchase and that include offices, shops, or any commercial properties; In order to conduct a successful business, to rent that property out, or even to resell it and gain a considerable profit, which brings fruitful results to investors.
Location is the most important issue for investment in shops. Any business must be located in a densely populated area, and transportation in the area must be secured. Moreover, the level of income in this region is very important. For example, investing in a pre-rented commercial shop for a well-known brand (such as BIM or A101) and continuing the lease contract can achieve an average monthly return that may reach 6-7% of the shop price in the long term. However, the increase in value of the commercial shop is determined by the surrounding investments and infrastructure projects that will increase the population and income in this location. This is a very important point when renting out a shop.
It must be verified that the shop has been designed and built as a commercial property and this can be found clearly in the title deed. Many homes are converted into shops and sold or rented out. This does not constitute a problem in some sectors, yet, it becomes a problem at the licensing stage in some other sectors. Besides, if there is a warehouse or basement belonging to the property, it must be verified and already registered in the title deed. In some shops, the basement or other sections are added to the store after renovating it. Also, before buying a shop, it is necessary to see if there is any annotation on the property from the Directorate of Land Registry or any other concerned directorate.
The width of the storefront is also an important point. The storefront is an area for advertising and promoting the store, so it is very important. Some stores with wide storefronts can increase their income by renting out part of their display areas to other brands.
A car park is an attractive factor for customers, and this increases the value of the shop in the future.
The expenses incurred after purchasing a property are a factor that increases the cost, but in general, tenants design decorations and other arrangements according to their own needs from their own budget. This is one of the factors that makes commercial real estate investment in shops superior to residential investment.
If the shop was newly built, it must be verified that its construction was carried out according to earthquake-resistant building rules.
For example, the presence of chimneys, the possibility of good ventilation, the infrastructure of the bathrooms, and the large areas without columns are very important when using the shop in the field of retail.
The investor must check whether the tenant who uses the shop is a commercial company or a long-term tenant even if it is not a company; the ability of the past tenant to do business and pay the shop dues is a reassurance factor of the ability of the future tenant to pay the rent.
One of the most important things to consider when purchasing an investment property is knowing the value of the current rent paid and calculating the number of years during which the amount paid will be restored. This period usually ranges from 10 to 30 years, and among the factors that affect the length of this period is the location of the commercial shop and the legal status of it. i.e.: "Was the shop purchased as a commercial shop or as a residence and then converted into a commercial shop?"
To sum up, real estate investment in commercial shops is one of the best ways to invest in Turkey, especially in Istanbul, due to the availability of the appropriate environment for it, such as the prosperity of the real estate market and the support of the government in this field.
Sources: milliyet + caddedukkan
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