Lands for Investment Purposes

Property Superiors understands that investors' trust is the most valuable profit that real estate companies can attain, and that maintaining the reputation of the Turkish real estate market is a shared responsibility. The Turkish economy is primarily driven by mutual trust and the creation of a secure and lucrative investment market that benefits all stakeholders.

How land offers submitted for sale in Turkey lead to real estate fraud cases:

With the intention of investing in Turkey, some companies present their investors with offers of land for sale. The land is located close to significant state projects, which provides a comparatively safe haven against future land price increases. Is this the complete image?

Regretfully, no, as the properties up for sale are in undeveloped areas and you do not currently possess a building permit or authorization from the municipality to make investments there. This implies that the land will be off-limits to exploitation for a number of years in the future, or for a decade or longer. The blatant fraud is hiding from the client crucial details regarding the type of investment in Turkey.

While the majority of construction companies adhere to the principle of participation when they first begin work, let's assume that after a few years, when applying for a building permit, a construction company decides to build a residential or commercial project in the area and offers the land owners to share the land and the associated construction costs, with each party receiving a portion of the property based on the percentage agreed upon in the original agreement.

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In other words, depending on the type of property to be established, the profit that the landowner receives is a number of apartments or commercial stores, and the ownership of the land has become joint. Which might only make up a tiny portion of the profit that could be made if the funds were allocated to more sensible investment initiatives.

You may have noticed ads for properties for sale close to the recently constructed airport in Istanbul. This airport, which is the third largest in the world by area, is regarded as one of the Turkish state's biggest projects in the city. Naturally, the cost of land next to the airport is rising and will likely keep rising in the years to come, particularly after the airport project and its supporting services are finished. Nevertheless, there is no building permit on the property next to the airport, which is semi-isolated from the city and lacks services. It also makes sense that once building permits are obtained, the prices of these properties will increase significantly. This is very encouraging, but will the investor really benefit from this increase? Is he going to make the money he wants?

Furthermore, the land's potential for resale is unguaranteed. This implies that the buyer bears the responsibility of finding a new investor and guaranteeing a profit percentage. Consequently, the process of reselling the land and turning a profit is dubious.

Such projects have a high opportunity cost, the invested capital will remain frozen for a number of years with no appreciable profits, and the profit returned to the buyer will not be significantly impacted by an increase in the price of the property. It has been observed that alternative investment approaches yield greater returns and are more successful in generating profits within the same time frame. The investor can choose the most advantageous investment strategy for him from among the numerous and diverse investment options available in Turkey by using the real estate and investment consulting services offered by Property Superiors and its dedicated team.