Investment property

Investment property in Turkey

Investment property (project investment) requires more capital investments compared to buying apartments (the investment here starts from 300 thousand euros) but gives the investor a number of advantages, the main of which are the ability to fully control and determine the investment strategy, as well as higher profitability of investments.

The acquisition of a plot of land with the future development of residential (flat complexes, villas) or commercial property (hotels, offices, and warehouses) on it is known as investment real estate.

It should be noted that, unlike the Western European real estate market, the “entry threshold” for Turkish investment projects related to real estate is an order of magnitude lower. The cost of land, building materials, and work here are much lower than European ones, and the quality is in no way inferior (and how can it be inferior if the Turks build real estate for the whole of Europe and are second only to the United States and China in the number of construction contractors). That is why investing in Turkish real estate is becoming more and more popular.

Investors are well-versed in counting money, ROI, and cash flow. As a result, one of the aims of any investment project is to minimize spending while increasing profit.

To minimize investments on the part of the investor, you can use the following tools:

1. Credit. 50% of investments can be borrowed from a Turkish bank.
2. Participation in real estate exhibitions and attracting investors at exhibitions immediately after the development of a construction project and obtaining a building permit. In more than 50% of cases, all apartments/commercial spaces are sold to small investors or end buyers before construction is completed.
3. Cooperation with the developer. This is one of the most standard working methods in the Turkish market, which is step by step as follows:

• the investor acquires a piece of real estate and finds a company;
• builder;
• the developer provides the development project to the investor; - the developer is building on the investor's site on his own and at his own expense (or at the expense of the investor);
• constructed apartments/shopping areas are distributed between the investor and the developer in proportion, depending on the cost of the plot and the cost of construction work. In the case when construction work was carried out at the expense of the investor, the developer receives only payment for the work (money or apartments / commercial space).

The developer is required to finish the construction work on schedule and in accordance with the construction timetable, while the investor is responsible for timely payment of the cost of these works.

Hayat Estate provides all services related to the search for suitable land plots, interesting investment projects, organization of negotiations and cooperation with the developer, control over construction work, organization of sales (or, at the request of the investor, leasing) of apartments / commercial and warehouse space.

Investment property with the calculation of profitability and investment is presented here.