Profitable investments in in Turkish real estate: case studies

In this post, we'd want to provide real estate purchases in Turkey as examples of profitable investments. Because the four instances cited took place right away in our foreign real estate agency Hayat Estate's practice, we can rely on them. The 1st painted case is in the process of being built, and the sales price and profit are estimated. The second, third, and fourth cases have already taken place.

This category refers to single residential investments, such as those with a minimum entrance requirement (in our experience, there are also cases of investing in apartment construction, commercial complexes, and wholesale purchases of apartments).

Example 1. Average invested amount - 15,850 euros. Profitability 92% in 13 months

At the end of 2012, in May 2013, a 1+1 apartment with an area of 51 sq.m. was acquired in the Elite Life 3 complex, which had begun to be built at the end of 2012. When purchasing, 5 stories were removed and roughly 25% of the spaces were sold, so the purchase price was cheap but not

According to the plan, the facility will be completed in May 2014, with the investor anticipating that when nearly all apartments are sold, he may sell his property.

The apartment was priced at 52,000 Euros when it was purchased. The following payment schedule is based on the interest-free installment given by the developer: May 2013 - 2,000 euros; June 2013 - 6,000 euros; September 2013 - 6,000 euros; December 2013 - 6,000 euros; March 2014 - 6,000 euros

The investor plans to sell the apartments in May-June 2014 and pays 26,000 euros from the proceeds. Average invested amount for 12 months of construction = (2000+8000+8000+8000 +14000+14000+14000+20000+20000+20000+26000+26000+26000)/13 = 15,850 euros. The estimated sale price will be 70,000 euros, and the profit will be 14,500 euros (taking into account the agency commission for the sale - 5%). Thus, the profitability will be 14,500/15,850 = 92% for 13 months (85% per year).

Below is a table with the characteristics of the investment case:

The purchase price of the apartment	€52,000
First installment	€2,000
Total invested	€26,000
Investment term	13 months
Average invested amount	€15,850
Sale price	€70,000
Agency commission	€3,500
Net profit	€14,500
Profitability	92%

Example 2. Average invested amount - 130,000 euros. Profitability 57% in 22 months

The investor bought apartments in the Selcuklu Konaklari complex, which began construction in 2010, for 100% payment at the start of development. As a result, the lowest possible price was given.

The development of the facility was completed exactly a year later. For a period, the investor lived in his own apartment before deciding to sell it. The apartments were sold 22 months after purchase.

The apartment cost 215,000 euros to purchase. Consider the investor who lived for free in an apartment 50 meters from the Mediterranean coast for roughly six months and purchased an apartment as a lucrative investment, we get project profit for 22 months - 74,250 euros (taking into account the agency commission for the sale - 5%). Thus, the profitability will be 74,250/130,000 = 57% for 22 months (31% per year).

Below is a table with the characteristics of the investment case:

Price of the apartment	130,000 euros
Investment term	22 months
Sale price	215,000 euros
Agency commission	10,750 euros
Net profit	€74,250
Profitability	57%

Example 3. The average invested amount is 37,600 euros. Profitability of 116% for 23 months

In the elite complex Azura Park, which began to be built in October 2010, in February 2011, a 1 + 1 apartment was purchased. When buying, the foundation was already poured and about 10% of the premises were sold, so the purchase price was not the lowest, but the lowest possible.

According to the plan, the development should be completed in October 2012, or when the investor intends to wait until construction is finished and sell his apartment once nearly all apartments are sold.

The apartment cost 65,000 euros when it was purchased. The developer's interest-free installment is taken into account, and the following payment schedule is observed: February 2011 - 5,000 euros; March 2011 to October 2012 - 3,000 euros per month

The apartment was sold in January 2013, 3 months after the complex was put into operation, for 112,000 euros. Average invested amount for 23 months of construction = (5000+8000+11000+…+65000)/23 = 37,600 euros. Net profit amounted to 41,400 euros (taking into account the commission of the agency for the sale - 5%). Thus, the profitability was 41,400/37,600 = 110% for 23 months (57% per year).

Below is a table with the characteristics of the investment case:

The purchase price of the apartment	65,000 euros
First installment	5,000 euros
Total invested	65,000 euros
Investment term	23 months
Average invested amount	37,600 euros
Sale price	112,000 euros
Agency commission	5,600 euros
Net profit	41,400 euros
Profitability	110%

Example 4. The average invested amount is 22,000 euros. Profitability of 45% in 10 months

2 studio apartments of 30 square meters were acquired in the HAK Residence complex, which began operations in late 2012 and is still under construction at the end of 2013. The total cost of two apartments is 60,000 euros. When you purchased the box, it was already on display and about 40% of the units had been sold, so the price was no longer the best.

According to the plan, the site should be completed in May 2014, i.e., after which the investor intends to wait for construction completion and sell his apartments once all but a few of the flats in the complex are sold out.

By early May, a 73,000-euro sale of profitable investment in the form of apartments had been completed. Taking into account the developer's interest-free payment plan, the payback date was set for 18 months and looked like this: July 2013 - 10,000 euros; October 2013 - 10,000 euros; January 2014 - 10,000 euros; April 2014 - €10,000; the next tranche is scheduled for July 2014, but since the apartments were sold in early May, the contract was rewritten to the buyer and he will continue to pay.

Average invested amount for 10 months of construction = (10000+10000+10000+20000+20000+20000+30000+30000+30000+40000)/10 = 22,000 euros. The profit amounted to 10,000 euros (taking into account the commission of the agency during the sale). Thus, the profitability was 10,000/22,000 = 45% for 10 months (54% per year).

Below is a table with the characteristics of the investment case:

The purchase price of 2 apartments	60,000 euros
First installment	10,000 euros
Total invested	40,000 euros
Investment term	10 months
Average invested amount	22,000 euros
Sale price	74,000 euros
Agency commission	4,000 euros
Net profit	10,000 euros
Profitability	45%

On the basis of these four actual situations, it becomes obvious that profitable real estate investments in Turkey are genuine, accessible, and successful. The most essential thing is to acquire the most lucrative real property as soon as possible, and never sell before its time.

We offer a wide range of real estate goods for investment and residence, both in Turkey and in various other countries throughout the world, at all times.