Types of Real Estate Investment in Turkey Based on Time Horizon

Real Estate Investment

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.

أنواع الاستثمار العقاري

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.

الاستثمار العقاري

‏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.

 

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