Short-Term Real Estate Investment:
Some foreign investors prefer quick returns on their real estate investments, especially first-time investors looking to experience the benefits.
drawbacks, and expected profits over a short period. Short-term real estate investment can be divided into two methods for achieving good returns within a brief timeframe:
1-Purchasing Under-Construction Properties:
- Buying a property under construction with approximately one year remaining for completion.
- Waiting for the construction to finish, making modifications and decorations, then reselling it as a ready property.
- This strategy can yield profits ranging from 30% to 60% within 12 to 18 months from the purchase date, depending on the property’s location, construction quality, services, views, nature, and the type of modifications made.
- Each type of real estate investment (short-term, medium-term, and long-term) has its advantages, drawbacks, average profits, and operational methods.
- The choice between them depends on the preferences and goals of the real estate investor in Turkey.
2- Purchasing a Ready Property with Modifications:
- Another strategy involves buying a ready property and making modifications, interior decorations, additional finishes, and concealed lighting.
- The property can be fully furnished and then calculated for resale, aiming for an investment profit ranging between 20% and 35%.
- This process typically takes no more than six months, considering the duration of the modifications.
3-Medium-Term Real Estate Investment:
- Medium-term real estate investment yields good and high profits over an intermediate period.
- It involves buying a property that hasn’t started construction yet (on the architectural plan). The construction company offers virtual properties.
- that haven’t even started excavation work, and they are still in the permit extraction phase. These properties are initially offered at very low prices.
- compared to ready properties. After the purchase and payment, either in cash or through convenient installment plans.
- there is a waiting period of 3 to 5 years—the average time for construction projects in Turkey. During this time.
- the property’s value gradually increases due to rising construction rates between floors, exchange rate fluctuations, and inflation.
- This approach can result in investment profits ranging from 100% to 300% or even more. However.
- it is advisable to collaborate with a reputable construction company with a substantial budget and a track record of timely project completion.
4-Long-Term Real Estate Investment:
- This type of investment is widely traded in Turkey, seen by many as an investment portfolio providing stable income for decades.
- It involves purchasing a ready property and investing through leasing. Finding a good tenant, whether residential or commercial (apartment, office, or shop).
- enables monthly rental income.
- This type of investment takes a long time to recover the initial property purchase costs through cumulative monthly rents.
- typically ranging from 12 to 16 years. During this period, there will inevitably be differences in exchange rates, inflation rates.
- and an increase in the investment value of the region, leading to a significant increase in the property price when sold.
Advantages of Real Estate Investment in Turkey:
- Turkey is a key investment destination globally and regionally.
- Its strategic location connecting Europe, Asia, and Africa facilitates easy travel.
- Strong economy, trade, and industrial sectors in Turkey.
- Robust educational curricula in Turkey.
- Turkey’s advanced tourism status, attracting around 40 million tourists annually for natural and historical attractions, leading to investments in tourism and hospitality.
- Turkey ranks third globally in attracting medical tourism, necessitating accommodations for visitors during their treatment.
- Cultural and civilizational diversity in Turkey due to the presence of various Arabic and foreign nationalities.
- Abundant human resources, with Turkey’s population exceeding 84 million, in addition to millions of tourists, ensuring constant demand for housing, food, and general needs.
- Favorable laws and regulations for foreign investors in Turkey.
- Continuous tax reductions and exemptions for foreigners in Turkey.
- Granting residence permits for foreigners upon purchasing property valued at least $75,000 in major cities.
- Granting Turkish citizenship to foreigners upon property purchase of at least $400,000, with a commitment not to sell it for three years.