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Advantages & Disadvantages of Turkey Real Estate Investment

30/05/2022 Advantages & Disadvantages of Turkey Real Estate Investment

Real estate investors in Turkey have enjoyed numerous benefits and a great profit recently. According to the house price index of the Central Bank of the Republic of Turkey, housing prices nearly doubled last year alone. Because of this considerable profit margin, investors worldwide are currently considering buying property in Turkey.

Of course, while investing in property, advantages and disadvantages come to mind, and the investors wonder whether the disadvantages outweigh the advantages or not. Real estate in Turkey, for foreigners, in particular, requires prior research to be a successful venture. There is no need to worry though, as we will be providing this exact information in our article.

Investing in Turkey Real Estate in 2022

Every type of investment requires the investor to take a certain amount of risk and yield a potential sum of profit. A high-profit margin usually entails taking a higher risk and might result in losses. Different from most other types of investment, however, real estate investment in Turkey has considerable potential for profit while being much less risky than the alternatives.

Of course, buying property in Turkey is not a game of fortune as most of the risks can be navigated, and at the same time, profit can be maximized with proper market research and professional counseling. 

We suggest a previously written article on our blog that explains how to find the best property for investment in Turkey.

But before deciding to invest in real estate, the advantages and disadvantages of such a venture should be well understood by investors.

What are the Advantages of Real Estate in Turkey?

There are numerous advantages of investing in real estate in Turkey. The most visible and significant advantage of this venture is the safe and encouraging environment the Government of Turkey and the Turkish people provide the investors with. This encouragement comes in many forms:

  1. Turkey’s stable political environment and property laws ensure that your investment rights are secured.

  2. The Government of Turkey actively encourages foreign investors by simplifying, safe, and relatively fast process of buying property in Turkey.

  3. You can also get Turkish citizenship after having an investment of $400,000 in real estate in Turkey and fulfilling several conditions.

  4. Considering the changes in the house price index, real estate in Turkey has great profit potential.

  5. The possibility of having a loss in real estate is very low in Turkey. Your base investment is not likely to suffer any losses.

  6. Real estate in Turkey is currently in high demand. In case you want to diversify your portfolio or change the focus of your investment, selling your property as soon as possible should not be an issue.

  7. Turkey is a developing country and is much more affordable than most other European countries while also boasting many of the advantages of a European country.

What are the Disadvantages of Real Estate in Turkey?

Despite its numerous advantages, possible disadvantages of property investment are also apparent, especially without professional counsel. In real estate investment, trust advantages and disadvantages the investor to a great extent.

That is most visible while renting your property out. Without trust, rental real estate disadvantages you with the possibility of tenants not paying their rents or possibly causing damage to your property. There are other possible disadvantages of real estate, such as:

  1. A low or unpredictable return for your investment

  2. Loss of profit caused by natural disasters

  3. Getting an unprofitable deal from estate agencies with ill intentions

  4. Unsatisfactory profits in the short term

  5. Potential problems while communicating with speakers of another language

The best way to establish trust in real estate, in our opinion, is to make use of the services of a professional investment counselor who can navigate the risks of the market and negate the possible disadvantages. 

What to Consider When Investing in Real Estate in Turkey?

To circumvent such issues, prior research about the market and the consideration of circumstances are strongly recommended. For example, imagine that you have decided buying investment property in Istanbul is an excellent choice. Some factors should be taken into consideration:

  1. Your intention in making this investment

  2. The budget you are comfortable with

  3. Location of the property

  4. The trends Turkey’s economy is likely to follow in future

  5. Supply and demand concerning the type of real estate you are considering buying

  6. Local and national laws concerning your property

  7. The desired and potential profit margin

Taking so many factors and the potential disadvantages of real estate investment into consideration might feel exhausting and poses a certain degree of risk to your investment unless you are a professional in the field. 

We recommend making use of the research already done by professionals in the field of real estate and investment. Ideal investment opportunities in the form of properties for sale in Turkey can be found on our website.

What Makes Real Estate Investing in Turkey Different?

What makes Turkey different in the real estate context also makes it advantageous. Being a developing country with a steadily growing economy, housing prices in Turkey are much more affordable than in many other European countries.

The environment properties belong to is constantly changing for the better, with new landmarks and important services built each passing day. The cosmopolitan environment, especially in big cities such as Istanbul and Izmir, is quite welcoming to foreign investors and the easy-to-follow processes in buying property in Turkey are quite cordial. As the earlier success of real estate investors clearly shows, most disadvantages of real estate are not apparent in Turkey because of its special circumstances. That offers unmissable opportunities to both new and experienced investors.

Turkey Real Estate Options to Invest

Turkey property alternatives come in a wide range of architectural approaches, unique designs, and social facilities. And various apartment, residence, penthouse, villa, and other home options are as close as a phone to you with Bari Global now!