Advantages of buying a commercial property in Turkey

Commercial real estate in Turkey is one of the most popular types of Turkish real estate by foreign investors in Turkey for trading in real estate and achieving high investment returns by establishing a business in it, renting it, or reselling it.

Commercial real estate concept in Türkiye

Commercial real estate is the buildings and lands constructed for the purpose of trading in order to achieve financial profit through investment returns through the use of the property. Commercial real estate includes certain characteristics and is divided into several types:

• Office buildings
• Retail spaces (shops)
• Hotels
• Industrial warehouses

Advantages of commercial real estate in Türkiye

Commercial real estate provides its owners with many advantages such as:

• Commercial real estate guarantees high investment profits provided that it occupies good vital locations within the city.
• The investment value of commercial real estate increases over time, which increases the percentage of expected profits.
• Commercial real estate in Turkey fulfills the needs of a wide range of tenants, as it is possible to carry out wide types of trade in it, especially shops and shops, such as selling clothes, shoes or accessories, or converting them into stores selling food, detergents, household needs, etc.
• The rental value of commercial real estate is much greater than that of residential real estate, as it is used for trade and generating daily profits. Rent can also be paid in advance for several months, as it in itself constitutes a source of income for the tenant and the owner, who obtains his rent values on a fixed basis and without delay.

 

Disadvantages of commercial real estate in Türkiye

Despite the advantages granted by commercial real estate, it does not mean that it is free of defects, which we must mention as a matter of transparency usual with the Golden Group for Real Estate Consultations, and these defects are:

• Commercial real estate requires a larger budget than the budget of residential real estate, which constitutes financial exhaustion for the investor or difficulty in saving the amount. Therefore, we find a wide segment of investors tending to own commercial real estate in installments by paying a down payment, usually ranging in value from 30% to 50%, and the rest in installments for a period of 12 or more. 24, 36 or 48 months. The probability of selling properties in installments increases when they are under construction.
• Commercial real estate in Turkey requires greater expenses than purchasing goods and equipping facilities such as shelves, warehouses, and vehicles for transporting goods, salaries of workers and employees, commercial taxes, costs of establishing a company, etc. Therefore, the economic feasibility must be studied to determine the best types of trade in which one can work.
• Investing in commercial real estate is subject to success or failure. As it is said (trade is profit and loss). Just as the percentage of profit exists, the percentage of loss also exists. Therefore, the project must be studied appropriately from all aspects.

Factors determining commercial real estate prices in Türkiye

There are a group of factors that will determine whether real estate prices in Turkey go up or down:

• The effects of the Turkish economy in terms of increasing demand for ownership of commercial real estate. The higher the demand for ownership, the higher the prices of commercial real estate and vice versa.
• The location of the property plays an important role in determining its price. When it is within a vital location surrounded by health, educational, and entertainment service institutions and transportation networks, its price will be high.
• Government facilities and incentives continue to attract more investors and increase requests to own commercial real estate, and thus their price continues to rise.
• The stability that Turkey enjoys gives the investors confidence and thus increases investments in various fields and increases the investment values of Turkish commercial real estate.
• Regulations dividing areas. If the property is located within an area that allows a variety of uses, it will have a greater value than real estate that only allows one use, such as closed industrial areas.
• The tourism reality of Turkey in turn leads to high commercial real estate prices.

Investing in Turkish commercial real estate is one of the recommended investments provided that you communicate with a reliable real estate consultant with long experience in the Turkish real estate market to guide the investor towards the best real estate offers that will achieve high investment returns and thus the success of his real estate investment in Turkey.