Real estate has historically been highly regarded as a wise investment choice, and it’s easy to see why. Many investors have earned substantial profits from their decision to invest in the property sector. Earning money and becoming financially secure can be achieved through this method. It’s an effective way to build financial freedom. However, with the rise of the global economy, more and more investors are looking beyond their borders for investment opportunities. Lately, the Turkish property sector has been garnering considerable attention due to off-plan in Turkey from developer. It’s definitely an attractive segment for potential investors. In this article, we will explore whether investing in Turkish apartments is a smart choice for your portfolio.
Turkish Real Estate Market
A clear understanding of the Turkish property market is crucial before making any investments in apartments there. Over the last few years, the industry has seen growth, attracting people from both within and outside of Turkey. According to open data for, the total value of properties sold in Turkey reached 475,000 units, an increase of 50% compared to the previous year. Moreover, the average price per sqm of residential properties increased by 32% in 2020, indicating a strong demand for housing in Turkey.
Factors Affecting the Real Estate Sector of Turkey
Political stability, economic growth, and population distribution all play a crucial role in the Turkish property sector. These varying factors can have a substantial impact on industry success. Turkey’s prime location makes it a hub for Asia and Europe, as well as the Middle East, connecting many countries together. It’s an ideal gateway that links these regions together. Turkey is an attractive option for foreign investors due to its advantageous geographical location, providing a great opportunity to invest in the nation’s real estate sector. In addition, Turkey has managed to bring in foreign investments by providing tax breaks and smoothening the access to financing. This has caused a surge in the country’s real estate industry.
Advantages of Investing in Turkish Apartments
Investing in apartments in Turkey comes with several benefits. The most significant one being the cost, which is relatively lower than apartments in other European countries. This enables investors to acquire more real estate and other investments with the same amount of capital. Additionally, Turkey offers elevated rental yields for apartments compared to other developed markets. These rental yields are far higher than those seen in certain countries throughout Europe.
In addition, the demand for residential properties in Turkey is on the rise. This is attributed to the country’s young population, more people living in cities, and increased disposable income. Besides the attractive business opportunities and a great lifestyle, Turkey also has beneficial tax policies for international investors, making it an ideal place for real estate investment.
Risks of Investing in Turkish Flats
Considering the potential gains that come with investing in apartments in Turkey, there are also associated risks. It is important to take those into consideration before making a decision. Firstly, political instability and economic uncertainty can affect the value of investments in the country. Recent political changes in Turkey have affected the economy and influenced the real estate market drastically. Additionally, navigating the Turkish property sector can be difficult for foreign investors due to legalities and bureaucracy. Finally, currency volatility can be a risk for investors who are not familiar with the local currency.
How to Invest in Turkish Real Estate
There are numerous approaches to investing in properties in Turkey. One of which is buying off-plan apartments from established developers, who offer reliable and profitable projects. This approach allows investors to secure properties at lower prices before they are completed. Investing in real estate can offer amazing returns upon completion. Properties can then be sold or rented out for a considerable profit. Additionally, investors can invest in newly built buildings or apartments that are up for sale. This approach offers a more immediate return on investment, as the properties are already completed and ready to be rented out or sold. Finally, investors can consider investing in duplexes, which offer the advantage of being able to rent out one unit while living in the other.
Off-Plan Residential ComplexesÂ
Investing in off-plan residential complexes offers several advantages. Firstly, the cost of these properties is typically lower than completed properties. This is because developers offer discounts to buyers who purchase properties off-plan. Furthermore, investing in such projects can bring significant capital growth when the properties are finished & put on the market for sale or rent. Finally, buyers can customize their properties to their liking.
Investing in pre-construction real estate can be beneficial, but it’s important to be aware of the potential risks as well. Knowing and understanding what you’re getting into is critical for making an informed decision. Firstly, there may be delays in construction, which can affect the timeline for selling or renting out the properties. Secondly, there may be quality issues with the finished properties, which can affect the value of the investment. Finally, finding tenants for the properties can be challenging, especially if the location is not desirable.
Cost of Property in Turkey
Investing in a Turkish apartment is subject to a number of factors, such as location, type of dwelling, and size. This will determine the cost associated with such an investment. January 2021 saw the average price of residential properties in Turkey per sqm to be around $425, according to publicly available data. Prices across Turkey differ greatly, with the most expensive area being Istanbul. Investors must not forget to factor in additional costs such as taxes, legal fees and maintenance costs too.
Summary
Investing in Turkish apartments can be a smart choice for your portfolio, but it’s important to carefully consider the risks and advantages before making any decisions. Recent times have demonstrated that investing in the country’s property sector is a rewarding endeavor. Nonetheless, it can be subject to various uncertainties like political upheavals, legal issues, and currency volatility. For these reasons, it is important to consider all aspects before making a decision.
Investing in Turkish apartments requires careful consideration and extensive research. The best way to do it is with an online property aggregator such as Yekta Homes. Additionally, it’s always a good idea to consult experts who understand the local property market. Knowing the risks and benefits associated with various investment options, like off-plan residential complexes or buying already constructed properties, will help you make better decisions. Understanding this key information can provide you with the knowledge needed to confidently invest.
Overall, property sector of the country appears to be in a positive trajectory, with a promising future outlook. Turkey is an attractive destination for real estate investors, due to its growing demand for residential properties, advantageous taxation policies towards foreign buyers and strategic geographic position. These factors make the country a great choice to generate profitable returns on investments. However, just like any sort of venture, it is essential to exercise caution and attention to detail in order to maximize success.
