Investment in Turkish Real Estate Leasing

Investing in leasing is one of the most common types of real estate investment in Turkey. Both local and foreign property buyers in Turkey.

are inclined towards this type of long-term real estate investment, which guarantees profitable rental returns for many years.

Investment in Real Estate Leasing:

• The aim of real estate leasing business in Turkey is to achieve a profit margin resulting from monthly rental values of properties owned by the investor.
• whether they are residential properties such as apartments or villas or commercial properties like shops or offices.
• This can be done by either purchasing a property under construction and waiting for its completion and delivery before starting the investment.
• by leasing it or by buying a ready property and immediately renting it out, benefiting from its increasing annual investment returns.

Reasons for the Increase in Rental Prices in Residential Complexes in Turkey:

Rental prices in residential complexes are higher than those of standalone buildings for several reasons:

1. The prime locations of residential complexes compared to standalone buildings in popular areas.
2. Modern designs and high-quality construction in residential complexes.
3. The provision of various services, including parking spaces, elevators, security, sports facilities, swimming pools, and gardens, which standalone buildings often lack.
4. Inclusion of earthquake-resistant structures and foundations in residential complexes, making them less susceptible to seismic activity.
5. Beautiful and open views that many residential complexes in Turkey offer, whether it’s the sea, forest, lake, city, or gardens.
6. High percentages of green spaces in residential complexes, ranging from 30% to 80% of the total area.
7. Increasing demand for ownership and rental of properties in residential complexes in Turkey.
8. Legal permits and property titles for residential complexes, without any such issues.

Advantages of Investing in Turkish Real Estate Leasing:

Investors are drawn to buying properties in Turkey and leasing them because this investment offers the following advantages:

1. A steady and continuous monthly income with annual increases.
2. Rising rental values of properties in Turkey.
3. Full collection of property values from rents within a period ranging from 12 to 18 years.
4. The presence of a lease contract that protects the owner from any delays or defaults in rent payment.
5. No need to be present in Turkey to manage the investment; it is sufficient to contract with a property management company.
6. Investing in real estate leasing does not require extensive experience but rather monthly monitoring and communication with the tenant.
7. The potential for high rental returns with several months’ advance payment.
8. Increasing property value over time, with its price rising significantly as it collects rental income.
9. Maintaining the property’s value and increasing it annually with rising rental income.
10. Real estate leasing serves as a stable and continuous income, especially for seniors, ensuring a comfortable living.

Investment in Apartment Rentals:

• Among the most sought-after types of properties for residence and rental in Turkey are apartments. Turkey has a population of nearly 85 million.
• including Turkish citizens and foreign residents, who constantly need to find housing for various reasons such as education.
• marriage, starting a family, family visits, and more. Therefore, investing in Turkish apartment rentals is one of the most popular investments.

Investment in Office Rentals:

• Turkey witnesses the establishment of thousands of Turkish and foreign companies each year, operating in various economic sectors.
• As a result, there is a constant demand for office spaces and properties suitable for offices, home offices, and studio spaces.
• Rental values for office spaces in Turkey are on the rise, as they are primarily used for commercial purposes, and some companies opt for annual rent payments with long-term lease contracts.

Investment in Store Rentals:

• Trade thrives in Turkey, especially in food and consumer goods. Many shopping centers and stores host major brands such as BIM, Carrefour, A101, Migros, and others.
• These stores require commercial space for annual rent to display their products, often with lease contracts lasting for ten years or more.

Steps for Investing in Turkish Real Estate Leasing:

The process of investing in Turkish real estate leasing involves the following steps:

1. Contact the Golden Group for Real Estate Consultations in Turkey.
2. Understand the real estate market, including laws, costs, taxes, and offers.
3. Determine the type of property the client wishes to invest in (residential/commercial).
4. Conduct a property tour to explore suitable options.
5. Obtain a property valuation report to determine the property’s true value.
6. Draft the purchase contract and have it signed by both the seller and buyer, with notarization.
7. Sell foreign currency to the Central Bank of Turkey and exchange it for the local currency through an intermediary bank.
8. Transfer the property’s value in Turkish Lira to the seller’s account through the same intermediary bank.
9. Schedule an appointment at the Land Registry and Cadastre Directorate.
10. The seller and buyer (or their representatives) go to the Land Registry office to complete the property transfer and hand over the title deed to the new buyer.
11. Sign a property management contract in Turkey between the client and the Golden Group.
12. Authorize the Golden Group through a power of attorney registered at the Land Registry to manage the property through leasing.
13. The Golden Group advertises the property in its own way to find a suitable tenant.
14. The Golden Group signs the lease agreement and defines the rights and responsibilities of both the owner and the tenant.
15. The Golden Group transfers the rental income collected from the tenant to the owner’s account on a monthly basis.
16. Golden Group is responsible for ensuring the tenant’s compliance with rent payment, and in case of default, it will take necessary actions.
17. Golden Group is responsible for delivering the property to the owner in the same condition after the end of the lease, including building, painting, and furnishing, if applicable.