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Feasibility of Investments in Türkiye for Foreign Investors 2023

08/02/2024 Investment in Turkey 152 Feasibility of Investments in Türkiye for Foreign Investors 2023

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  • Investors and capital owners always aim to increase these wealth in large leaps, even if there is a risk, because without taking risks there will be no profitable profits, and foreigners who come to Turkey to invest in it want to know the feasibility of investments and the profit margin in them.  
  • Here we are talking specifically about real estate investment in Turkey , and other investments other than that, which are not concerned with the current article. We would like to point out that real estate investment has proven its worth over the past years and is still at the forefront of several sectors, and therefore we must focus carefully and carefully on the numbers and analyzes contained in all of them. The paragraphs of this article are so that your investments are in a safe place and constantly increase. 

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  • The feasibility of investments in Turkey for foreign investors in 2023. We base it on personal experiences with many of our dear clients whom we had the pleasure of accompanying during their journey in real estate investment in Turkey , and we are now embodying it within this article, and clarifying the types of these real estate investments in all their forms and types, because it is the gateway that will take your hand. To Turkey and start investing directly in its real estate. 
  • What will we present to you today in our article? We will first begin by defining the importance of investing in real estate in Turkey  and why? Then we will come to the most important forms of real estate investment in it, and in the end we must learn about the advantages and personal incentives that return to the investor on the one hand, and the return on the value of those investments on the other hand. Let us dive into the folds of this article and learn about all of that.

What is the importance of real estate investment in Türkiye? 

  • In general in the world and not just in Turkey, what always protects capital is investment in fixed assets, as it protects it from several things that have emerged recently, including what is old since time immemorial, and we will list some of them in order to clarify the picture better, the first of which is inflation. Global and local, which has destroyed most countries of the world.
  • There are some things we would like to mention to you regarding the importance of real estate investment in Turkey before talking about these matters, which is that during the last period, the consumption of the real estate sector in Turkey reached approximately 8.4% of the gross domestic product, and the real estate sector in Turkey has achieved a great renaissance and this has been met with interest. Increasing foreign investments, and this proves what we mentioned about the importance of this investment.
  • Real estate investment in Turkey is considered one of the best ways to invest, as Turkey has in recent times ranked fourth in the world on the list of the top ten locations for real estate investment! Yes, this is due to the recent launch of the Turkish real estate market and also due to the demand of tourists and investors from all over the world to buy and own property in Turkey, especially after the principle of reciprocity was abolished by 2012, and this is what stimulated abundant purchasing in Turkey.
  • Due to this, the Turkish government allowed the majority of other foreign nationalities to own property in Turkey. It also worked to create many facilities for foreign tourists to own real estate in Turkey, which supports the Turkish economy. It worked to support the construction sector, which contributed to the development and growth of the real estate market in Turkey. Now let us We come to the matters that have recently enhanced the importance of real estate investment in Turkey.

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First, real estate investment in Türkiye protects capital from global and local inflation 

  • This matter is not disputed by any economic analyst, investor, or even an ordinary person, because real estate always protects capital from loss and loss of value in light of the large increase in goods and prices and the bubbles that follow all of these matters emanating from this inflation. 
  • For example, we bought an apartment for sale in Turkey , and inflation began to affect Turkey and all its regions, prices and everything. This apartment that we bought in Turkey maintains its value, unlike it being in the form of capital that is affected by all the standards that are undermined by inflation and that money loses its value. 

Secondly, real estate investment in Turkey protects capital from the rise and fall of global and local currencies 

  • This is what happened in Türkiye specifically! Yes, in one of the past periods, the value of world currencies doubled against the Turkish lira, and this affected most sectors in Turkey and purchasing power as well, and therefore the safe haven was the fixed assets that originally rose with the rise of those hard currencies! 
  • Yes! This is what analysts who do not have experience in the real estate market were surprised by, and they thought that the value of these properties would lose a large part of them, but their value exceeded and became double, and their prices increased terribly, because in short, it is an eternal and innate investment since ancient times, which is what made its owners capital and wealth. International. 

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Third, real estate investment in Türkiye constantly develops and increases capital 

  • One of the investments that have proven themselves most globally and locally in Turkey are real estate investments, because they attract large numbers and distinct percentages by calculating the turnover of capital with each year. This does not mean that every property can constantly increase its value, but there are standards that must be relied upon in order to achieve this title. Paragraph.
  • Whoever relies on his modest experience and arrogance, and we regret this word, but it has been the reason for the failure of many real estate investments in Turkey, so the matter must be delegated to the stakeholders and expertise in the Turkish real estate markets, from reliable companies or individuals who have the qualities of an expert real estate advisor, and he is the one who can develop capital. Through real estate investment and is constantly increasing it. 

Fourth, “Real estate gets sick and does not die” is a saying that has proven itself in the Turkish real estate market

  • “ Real estate gets sick and does not die ” is a saying from one of the greatest articles that indicates the value of real estate assets in the entire world, and in Turkey it had a great impact in attracting investments, as well as those wishing to buy real estate in Turkey. As for the evidence and data, there are many in the Turkish real estate market, the most important of which is Statistics issued monthly by the Turkish Statistical Authority. Now let us learn about this saying specifically.
  • Real estate gets sick and does not die is a phrase used by international real estate investors. Sickness means that real estate may be exposed to crises, including recession in light of sudden crises, where the demand for purchase decreases and real estate remains as it is until it returns to the way it was before exposure to this crisis. 
  • What “does not die” in this saying means that the property maintains its value in the long term, and it is impossible for it to lose its value or deteriorate under any circumstances, meaning that despite all the crises and diseases it is going through, at some point it will still maintain its price. Its position in the market, and it will not lose its value no matter how many reasons.

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Why real estate investment in Turkey ? 

  • Real estate investment in Turkey depends on many reasons and many advantages that have made it one of the investments that attract capital and others. Reasons that depend on components that already exist in Turkey, and there are incentives adopted by the Turkish government to attract investments to it. A fact that we cannot limit here in the article, but we will mention to you. The most important of them, and we will start with the components, as for the incentives, we will come to them at the end of the article when mentioning the distinctive points that return to investors. 

First, the successful and prosperous economy in Türkiye

  • Today, Turkey is one of the active members of the G20, the most powerful economy in the world. It has occupied superior ranks globally, and its ranking in 2022 is ranked 20th among the strongest economies in the world. Turkey has witnessed a great renaissance during the previous years on the economic level and has become competitive with global countries. 

Secondly, the terrible development in Türkiye and the expansion of opportunities there

  • The remarkable development in Turkey has led to an increase and expansion of opportunities at all levels and fields, such as enhancing trade exchange with many international countries. Technology has also flourished greatly in this field. Turkey today leads the drone industry, and it also competes with other countries. Others in the field of electric vehicle manufacturing TOGG.

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Third, the young infrastructure throughout Türkiye

  • The advanced infrastructure in Turkey has attracted many international investments in the size of countries, even not just individuals, such as what we witnessed in the construction of the largest medical hospital in Turkey in partnership with the Japanese government, named Cham and Sakura, and other major projects, the largest airport in Europe, Istanbul Airport, the Eurasia Tunnel. , Çanakkale Suspension Bridge, and currently the future Istanbul Canal.

Fourth, the international strategic location of the Turkish state

  • The strategic location of Turkey makes it effective and suitable for large markets through its location that provides access to global markets at the intersection of Europe, Asia and Africa easily and certainly less expensive. It also connects Asia and Europe via the city of Istanbul, which is called the city of two continents, and is well known among all citizens of countries. the world. 

What are the forms of real estate investment in Türkiye? 

  • In the following paragraphs, we will summarize for you the forms of real estate investment in Turkey, while talking about the feasibility of these investments, and in order for them to be clear to many investors who want to come to Turkey and invest their money in the Turkish real estate market, and we will start first with hotel and office apartments.

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First, real estate investment in Türkiye, including hotel and office apartments  

  • By the term hotel apartments in Turkey, we mean apartments that are for a temporary stay for specific people during a limited, not long period, and they have a hotel system that includes pre-determined entry and exit times, and all services in them are completely hotel in terms of arranging and cleaning the rooms on a daily basis, even The accompanying services are generally the same as those found in hotels. 
  • As for the concept of office apartments or offices in Turkey, we mean apartments that are used for work purposes only, and cannot be used for living at all, and this is what I find most in Istanbul projects specifically, and the reason is due to the nature of Istanbul as a business center and international meetings for merchants, capitalists, and Musads. And others as well, and there are also other similar cities such as the cities of Ankara, Izmir and Mersin, where ports and official institutions are located.

What is the feasibility of investments in Türkiye in hotel and office apartments?

  • The investment feasibility of these forms and the average investment returns for office apartments are very rewarding and distinctive, and it is one of the best successful real estate investments in Turkey. The average in general and based on achieving the correct criteria presented to you by the expert real estate consultant “Damas Turk Real Estate”, is approximately 7% and is based on experiences. A precedent for dear clients of the company. As for resale, no less than 30% of the value of the entire property can be collected.
  • This investment requires a good capital exceeding 400 thousand dollars, in order to choose apartments and offices that are appropriate to the ideal conditions that achieve a rewarding investment, and it is preferable that these apartments be unused, for the sake of ease of selling during the coming years on the one hand, and in order to rent them quickly. Among the current high rent numbers in the city of Turkey 

Secondly, real estate investment in Türkiye through residential apartments and home offices  

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  • The concept of home office apartments by which we mean apartments that are used for work and living at the same time, and they are also widely available in the city of Istanbul, and many merchants use them as capital during their work and when they come to Turkey for the purpose of trade and other things as well, and there are construction companies that adopt this style alone in their projects.
  • As for the concept of residential apartments, which are actually the best ones to be in complexes, complexes and real estate projects in general in the world are meant to be a group of residential buildings, surrounded by a wall and a security system supported by technology and security men dedicated to protecting the complex and its residents. Usually, the complex has one administration that supervises and manages it. Most residential complexes contain a group of common service facilities for all residents of the complexes

What is the feasibility of investments in Türkiye in residential apartments and home offices?

  • The investment feasibility of the second type of real estate investment and the percentage of investment returns in home office apartments are also high and profitable, especially since those who want to rent them are various companies, institutions and organizations, and of course their rental numbers differ from what is hotel and office, for example, and the annual return generally reaches 5.5. % in central areas within cities, and resale profits may reach at least 30% after waiting for a few years
  • This investment requires good capital exceeding 350 thousand dollars, in order to choose residential apartments and home offices that are compatible with Damas Turk Real Estate standards and which are the best, and preferably unused, in order to easily sell them in the coming years on the one hand, and in order to It can be rented quickly and within the currently high rent numbers in most cities in Turkey.

Third, real estate investment in Türkiye with apartments under construction 

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  • Apartments under construction in buildings and real estate projects are included in investment apartments because they are the type in which the profit margin is high, so that purchases are made during the stages of establishing and building projects, and their prices are lower than what is in the real estate market by virtue of their condition until they are delivered, and they are abundant in the city of Istanbul. And Antalya.
  • By this term, we mean that every apartment for which official documents have been issued, and which is still under construction of the project, or on the map, or at the end of the project’s delivery, is included in this list, and therefore they are called in the Turkish real estate market as apartments under construction, and they are truly among the best investments.

What is the feasibility of investments in Türkiye with apartments under construction?

  • The investment feasibility of under-construction apartments is somewhat higher than most other investments in apartments in general, because the average investment returns upon receiving the apartment are more than 35 percent of its value, this is under the simplest possibilities, and the more successful the criteria are, which are the better, the more impressive the results will be.
  • This investment requires good capital exceeding 300 thousand dollars, in order to choose distinctive apartments in projects under construction, and currently the projects offer many distinctive offers in the real estate market, and Damas Turk Real Estate is always the first to obtain unique offers in these projects, contact us to We take you there. 

Fourth, real estate investment in Türkiye through independent villas

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  • Independent villas are the most popular type in general in the city of Istanbul. These villas are characterized by complete privacy, and all services and recreational facilities such as the swimming pool and others are private to the residents of these villas only. They are most commonly found in private areas of the villas as well, such as Silivri, Buyukcekmece and some areas of the Asian side. also.
  • Real estate investment in independent villas is a successful and long-term investment option, and it is not like investing in apartments of all kinds. Firstly, the investment returns for this type are through renting these villas in a touristic manner, and they are during the seasonal periods as is common in Istanbul, meaning the summer periods when demand is high. These villas are very popular.

What is the feasibility of investments in Türkiye in independent villas?

  • Independent villas have a special advantage and are very popular, as we rent these villas to families during the summer period in order to spend enjoyable times of relaxation and rest. As for the numbers, they are large and in dollars as well, as they are rented on a daily basis with hotel services for them as well, and the feasibility of their investment returns reaches More than 10%, but you must be patient to sell it in order to achieve a high and abundant profit. 
  • This investment requires good capital exceeding at least 700 thousand dollars, in order to choose hotel villas with standard specifications, in order to easily rent them quickly and within the current high rent numbers in the city of Istanbul, and reselling them requires a long time, which must be patient in order to Get the fruits of this investment. 

Fifthly, real estate investment in Türkiye includes villas within complexes

  • Shared villas within complexes. This type is widely available in Turkey in general, not just Istanbul. In complexes, all services and recreational facilities are usually shared for the residents of the entire complex. This means a lack of privacy to some extent, and therefore they are not very desirable compared to independent villas. 

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  • Investing in shared villas within complexes is a medium-term and long-term investment option as well, and it is certainly not the same as investing in standalone villas. Firstly, as for the investment returns of this type, it is through renting these villas in a touristic manner, which is somewhat difficult but possible, and secondly, in the summer periods when The demand for these villas is very high.

What is the feasibility of investments in Türkiye in villas within complexes? 

  • The feasibility of investments in villas within complexes and investment returns for this type are somewhat average and generally reach 4% in these common types of villas, due to the difficulty of renting them on a daily, tourist or weekly basis, due to the complexes’ policy that prevents the entry and exit of anyone other than the villa owner or tenant. It is long-term, and it prevents some people from using services such as swimming pools and others as well. 
  • This investment requires good capital exceeding 800 thousand dollars, in order to choose villas within upscale complexes with standard specifications, in order to easily rent them quickly on an annual basis in the hope of obtaining high numbers that are commensurate with the Turkish real estate market.

Sixth: Real estate investment in Türkiye in agricultural and construction lands 

  • It is one of the most rewarding real estate investments in this period, which has become a huge business and brings in money quickly, even though the land is known to be a long-term investment, and therefore it was undesirable for many investors. These lands are of two types, agricultural and construction, and from their names it is known what is meant.

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  • Agricultural real estate investment is through many incentives offered by the Turkish government in order to encourage agriculture, while construction is represented in the construction of buildings or villas, and both things are investments that we take pains to prepare and follow up on, but the investment returns are significantly high.

What is the feasibility of investments in Türkiye in agricultural and construction lands?

  • The feasibility of investments in agricultural land in Turkey has a profit margin throughout each year, of course, if the standards are consistent with the market, and experts are chosen in managing it. Through a single crop per year, profits can be obtained that exceed half the price of these lands, and this means investment returns of 50%.
  • As for the feasibility of investing in construction lands, it is another world of investments. It is true that it takes a long time to collect, rotate, and return the capital, but the profits in it exceed 200%, and this is known in the world of construction. We return and repeat that all of this must be within criteria that were carefully selected with the advisors. Competent and expert real estate agents. 
  • These are the most prominent types of real estate investments in Turkey for foreign investors in 2023. Certainly, there are other industrial, commercial, and other investments, but these investments require huge capital and are complex. On the personal level, investments such as real estate investment are always preferred, because they are the least risky and are durable in maintaining their properties. Capital, and finally the returns and benefits from it are certain, even if the period is long.

What are the incentives for foreign investors in Türkiye 2023 on a personal level?

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As we mentioned to you at the beginning of the article, real estate investment in Turkey is not only represented by investment returns on capital, but also on the personal level of the investor, and this is what was a major reason for attracting most of the capital in the Middle East region to obtain these incentives that we will follow. on it in the following paragraphs. 

Every country has certain incentives to attract capital, but what the Turkish government has provided over the past years is considered the most attractive, especially among the countries of the region and even Europe, and this is what prompted many to rush to obtain these incentives, the most prominent of which is obtaining Turkish citizenship, which is considered one of the The best motivation on a personal level. How could it not be when the Turkish passport can enter more than 134 countries! Yes, even if some of them are through electronic visas. 

First , obtaining Turkish citizenship in exchange for purchasing a property 

Real estate investment for foreigners in Turkey has peaked in the past three years. Why? Certainly because of the law on obtaining Turkish citizenship by purchasing a property worth $400,000, which was issued at the end of the year 2018, and which was previously worth $250,000, this decision led to most of those who love Turkey and live there directly rushing to buy a property in Turkey and obtain its citizenship. 

The conditions that any foreign investor must not violate when investing in real estate are: 

  1. First, the value of real estate in Turkey for foreigners must not exceed an area of ​​30 hectares in most cities in Turkey
  2. Secondly , you must verify the cities that grant foreigners the right to own property. There is an area in which ownership is prohibited (military and other).

These conditions that we mentioned are set by the Turkish government, but what we will mention later are conditions that must be taken into consideration in order to protect your real estate investment and preserve its value, which are 

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  • There must be a consultant or real estate company to ensure that you obtain the property in a safe manner, reduce fraud and…
  • Searching the property’s record and history to ensure it is free of foreclosure, seizure, etc.
  • Choosing the property in the right place ensures that you maintain its value and increase its price, and this requires a real estate expert.
  • General matters that must be considered regarding the property’s finishes, age of construction, and… 

Certainly, choosing a reliable company with a good reputation is the right choice to obtain a successful real estate investment in Turkey. Damas Turk Real Estate is an agent for more than 300 points and projects in Turkey, projects that have been carefully and carefully selected to be a successful future investment that we offer to our dear clients in Turkey, and to expand further on this incentive. Important for foreign investors, you can follow our detailed article entitled How to obtain Turkish citizenship, its advantages, and the power of the Turkish passport 2023.

Secondly, obtaining real estate residency in Türkiye

Real estate residency is a right granted to every foreigner who buys a property in Turkey, based on the minimum value of the property, which is currently set at $75,000 in major cities, and $50,000 in smaller cities. This residency allows its holder to move around and conduct his business in Turkish territory legally. It means a regular permit granted for its holder to reside in Turkey in a safe and sound manner.

As for the conditions that any foreign investor must not violate when investing in real estate to obtain real estate residency in Turkey

  • Firstly, the property that was purchased in exchange for residence is valid for residential purposes only!
  • Secondly , the value of the property must be at least $75,000.
  • Thirdly , only one property of that value entitles its owner to obtain residency only! 
  • Fourth , there is a real estate evaluation that proves the value of the property matches the required value 
  • Fifth: Buying real estate in the cities and areas available there.

But these are the tips of pens that talk about real estate residency. To delve more into its conditions and features, you can follow our dedicated article about it entitled Ways to Obtain Real Estate Residency in Turkey 2023.

  • With the end of the last paragraph of the article, we would like to remind you of the most important ideas that we presented to you in this article. We talked about the importance of real estate investment in Turkey, its forms, and the feasibility of each of them, which enhanced the knowledge of what we will face in the Turkish real estate market when we approach it, and this is one of the greatest things that We are proud to present it to you, so that it will be the gateway for you to enter this market from its widest doors, and with our partner “Damas Turk Real Estate”, we are keen to serve you in an integrated manner. 
  • Real estate investment in Turkey is certainly a successful, safe and profitable investment, which benefits the capital on the one hand and the investor on the other. Are you seeking this as well? Or rather, we will tell you what are you waiting for now? Most investors have already done this before you, and you are still watching and analyzing from afar. Take the initiative now to obtain real real estate investment opportunities with rewarding investment returns.. 
  • Damas Turk Real Estate Company has many investment opportunities in several fields. Do you want to benefit from them? All you have to do is click here to communicate with the most important consultants in the company. It provides you with complete economic feasibility with a definitely profitable investment, documented with numbers and analyses.. Contact us and do not hesitate. 

 

Edited by Damas Turk Real Estate©

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