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Feb 5, 2023

Returns on Real Estate Investment in Turkey and Istanbul in Particular

Almost everyone agrees that Turkey in its different regions, especially Istanbul, constitutes an attractive environment and suitable climate for real estate investment in Turkey, as many foreigners flock to buy real estate in Istanbul and have apartments for sale in Turkey in general.

Choosing Istanbul or Turkey for investment was not a vacuum. International investors are so smart that they differentiate between a fertile environment for buying real estate with investment objectives and vice versa. Several influencing factors play an important, effective and encouraging role in real estate investment in Turkey. Long term investment guarantees rewarding returns day in and day out.

Factors that support real estate investment in Turkey

Are you looking for a safe investment to earn rental income or resale profit in the future? Turkey has a good real estate market to meet these demands. As known, the best choice for investment is real estate investment in Turkey. These are the most important factors that encourages real estate investment in Turkey: 

  • The Investment Citizenship Program offers one of the most competitive opportunities in the world. Within three months, you can get a Turkish passport by spending $400,000. You can easily choose from a wide range of portfolios, from modern apartments to luxurious villas by sea. The spouse and children under 18 are included in this program as well. 
  • When the whole world is witnessing crises at different levels, real estate becomes the safest haven among all types of investments.
  • Real estate investment in Turkey is short-term, unlike any real estate investment in any other country, as it may take 10 years to obtain a return on capital, while in Turkey it happens within a maximum of five years.
  • The possibility of loss in real estate investment in Turkey is very small because the Turkish real estate market is free of gaps and sudden declines because it depends on the Turks not foreign investors, as is the case in Dubai, for example. The percentage of Turkish purchases of real estate represents about 93%, while the percentage of foreign purchases represents only 7%.
  • The strategic projects that the Turkish government has opened and is working to open soon, which will change the map of international trade and economy. These projects include: the New Istanbul Canal and the new financial center.

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The appropriate factors for real estate investment in Turkey

1. Unique and strategic location

Turkey's special and strategic location has created an accessible and cost effective hub for key markets with convenient connectivity for 1.5 billion people and a combined economy of $24 trillion of GDP in Europe, the Middle East, North Africa and Central Asia within the scope of a 4 hour flight.

This has attracted global names such as Toyota, Ford, Nestle and Hugo Boss, both of whom have chosen Turkey as their production, export and management hub.

Many companies claim that Turkey's geographical location at the crossroads of Europe and Central Asia and its skilled workforce is a winning formula.

Turkey occupies a strategic position between Europe, where much of the world's political and economic power is concentrated, and Asia, which has recently become an important center of economic development and growing political influence.

2. Turkey's infrastructure and economy

  • The Turkish economy has become among the 20 most powerful economies in the world due to the continuous work during the past twenty years by the Turkish authorities to achieve strong figures for Turkey in the international arena.
  • Turkey's developing economy offers attractive prospects for infrastructure investment across a wide range of industries, including transportation, healthcare, and energy.
  • According to the World Bank, Turkey ranks third in global public-private partnership projects. The private sector returned with 26 agreements with Gulf countries in 2023.
  • Turkey also witnessed a boom in exports, with diversified products reaching more than 132 globally and its tourism sector recovering. In 2023 alone, it was visited by more than 53 million tourists as the fourth best tourism destination in the world.
  • In general, the Turkish economy ranks seventh in Europe in terms of the largest economies of the old continent, in great competition even for the largest and oldest economies, such as France, Germany and Britain.
  • The Turkish economy is considered one of the most resilient economies in the face of crises such as the Corona crisis and the global crisis. It has shown great strength and stability compared to many major economies.

3. Renewable laws in Turkey

About ten years ago it was impossible in Turkey as a foreigner to own real estate easily. The Turkish government took an interest in this and embarked on a legislative revolution in favor of foreign investors. Real estate investment in Turkey has increased significantly in recent years. The government reduces the value of the property to obtain Turkish citizenship. You can obtain Turkish citizenship by buying a property only for the amount of 400 thousand dollars.

4. High profits for real estate investment in Turkey

The real estate market in Turkey continues to double in value every year. Investments in Turkey's fast-growing real estate sector provide a profitable return for investors. According to research, real estate investment in Turkey is one of the most profitable investment tools in Turkey. It recorded a profit rate of 150%. Real estate in Turkey is also attracting attention.

Turkey real estate has high investment returns. The large number of residential and commercial real estate projects had an impact on these huge returns. Istanbul apartments for sale are almost unique from the rest of the Turkish cities. Many real estate projects in Istanbul have huge and guaranteed returns.

Istanbul in particular has a strong infrastructure and an extensive transportation network. There are many investment opportunities. In addition to the advantages of climate, customs and traditions.

5. Turkey is a tourist country par excellence

Turkey is one of the most popular tourist countries for foreigners. Tourists continue to visit Turkey despite the outbreak of the Corona pandemic due to the Safe Tourism Program.

This beautiful country has stunning nature, enchanting beaches and many recreational facilities. You can find shopping malls, folk markets, monuments, parks, squares, shops, walkways, etc.

It also maintained its high-end services within its residential model. Residential complex buildings contain many services and facilities. Its most famous landmarks are swimming pools, football fields, security guards, recreational spaces for children, pools, gardens, and others.

What are the returns on real estate investment in Turkey?

Investment returns can be defined as the estimated percentage between the net profit and the investment cost resulting from the investment of some resource. In other words, a high investment return means the investment gains positive over its cost.

Return on investment (ROI) is used as a performance measure to assess the efficiency of an investment or to compare the efficiencies of many different investments. In purely economic terms, investment returns are one way of tying profits to the investor's capital.

The returns on real estate investment in Turkey differ from other investments in other fields, where the capital in the property maintains its real value, and the value of the property may increase often, to reach the annual percentage of profits through investment returns that are achieved by resale or Renting up to 20% of the original property value...

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