The Best Return on Real Estate Investment in Turkey

The Best Return on Real Estate Investment in Turkey

Table of Contents

Turkey has been experiencing a lot of economic and social growth in the last decade. It’s one of the most attractive real estate markets in Europe, with low unemployment and high population growth. This guide is for foreign investors looking to buy their first home or invest in real estate. It will cover everything related to how to get the best return on real estate investment in Turkey, and how to calculate return on real estate investment in Turkey.

We hope that this guide will help you make an informed decision when it comes to investing in Turkish real estate and calculating your good return on real estate investment in Turkey.

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Turkish Economy is Booming and So is the Housing Market

Turkey is one of the most popular tourist destinations in the world. It has a lot to offer, from historical sights to natural scenery. It is a country that has been developing rapidly in recent years, and it’s an interesting place to invest in.

Many people from all over the world consider how to use their money after retirement, without much effort, in the short and long term.

Since Turkey has proven itself in recent years with a strong economy that has been ranked among the world’s ten most powerful economies, most people who decide to target foreign markets to invest their money, find Turkey as the first and best choice.

Read more: What is a Real Estate Appraisal in Turkey?

The Future Prospects of Return on Real Estate Investment in Turkey

The Future Prospects of Return on Real Estate Investment in Turkey
The Future Prospects of Return on Real Estate Investment in Turkey

Real estate investment in Turkey is attracting foreigners from all over the world because of the good return on real estate investment in Turkey.

Turkey is vital throughout the year, and this proves all these high numbers whenever it comes to renting or buying real estate. 

If you are planning to buy real estate in Turkey, you should deal with an expert real estate agency that guarantees safe legal transactions.

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Benefits of Real Estate Investment in Turkey

The higher the demand, the higher the price. The demand for real estate investment in Turkey’s market has significantly doubled in recent years, and that is why property prices are rising recently.

Foreigners prefer buying real estate in Turkey, and brokers are increasing their profits by exploiting foreigners’ lack of knowledge of the Turkish market.

For this reason, Lale Real Estate Group is always here to provide suitable properties for our clients at reasonable prices and safely free of illegal methods.

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Read more: Buying Properties in Istanbul Countryside Vs in The City

Why to Choose Real Estate Investment in Turkey?

Turkey has numerous advantages that place it strikingly among the best countries for real estate investment, including:

Turkey’s Geography and History

Turkey’s strategic location is advantageous, as demonstrated by the fact that all civilizations that have inhabited the globe since the beginning of time, put a mark in Istanbul.

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Price Per Square Meter

Compared to major European countries, Turkey is the only competitor that has demonstrated significant technological progress while maintaining low real estate prices in significant portions.

Read more: Obtaining Turkish Citizenship by Investment Process and Buying Property

Cost of Living

Middle-income people can live in Turkey as the rich due to the high-quality social facilities that fill the sides of the Turkish streets.

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Cultural Diversity

Turkey can incorporate all ancient civilizations and retain a touch of them that is still present today, demonstrating the huge number of historical monuments, customs, and traditions that exist in this country.

Read more: How to Get Turkish Citizenship by Investment for Russians?

Real Estate Rental Return on Investment in Turkey

Real Estate Rental Return on Investment in Turkey
Real Estate Rental Return on Investment in Turkey

The good return on real estate investment in Turkey can be achieved in the short or long term, especially if the property is on the European side of Istanbul.

Foreigners who buy properties in Istanbul will undoubtedly be able to rent them, or sell them at much higher prices.

 For example, whoever buys a property in Turkey for one hundred thousand dollars will be able to rent it for a monthly amount ranging between 300 and 1000 dollars per month, depending on the features and location of the property.

Read more: Full Details of Turkish Nationality Law by Investment 2022

What is Meant by Return on Real Estate Investment in Turkey?

Return on investment “ROI” refers to the amount of profit that is achieved from an investment as a percentage of its basic cost.

It is used when investors determine the feasibility of buying a property compared to another.

When comparing real estate investment in Turkey with other investments, you can find that this is the most secure field. 

A property is risk-free because its value can never decrease, and real estate investors are not concerned about wasting their money on other hard investments.

However, the process of picking the right property at the right time is still crucial for getting the best return on real estate investment in Turkey.

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How to Calculate Return on Real Estate Investment in Turkey?

How to Calculate Return on Real Estate Investment in Turkey
How to Calculate Return on Real Estate Investment in Turkey

In order to calculate return on real estate investment in Turkey, the value of the initial cost should be subtracted from the initial property value to calculate the return on real estate investment in Turkey.

This percentage can then be used to compare investments side by side and help you select the best one.

Read more: The Best Reasons to Buy a Property in Turkey

Real Estate Rental Return on Investment in Turkey Equation of

A simple way to calculate return on real estate investment in Turkey = (current property value – initial investment cost) / initial investment cost.

Example:

When you invest $1,000 in a property in 2017, and then sell it after three years with an estimated value of about $1,500, here is a way to calculate return on real estate investment in Turkey:

(1000) = (500 / 1000) * 100 = 50% / (1000-1500)

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Percentage of The Monthly Expected Return on Real Estate Investment in Turkey

When calculating the best return on real estate investment in Turkey, a number of factors should be considered, such as its location, facilities nearby (schools, hospitals, transportation stations).

In addition to that, the nature and quality of the property are important factors if you want to calculate return on real estate investment in Turkey.

The real estate rental return on investment in Turkey currently ranges from 10% to 15% of the original property value, for commercial properties.  As for residential ones, it is between 5% and 8% in most cases.

Read more: How to Get Exceptional Turkish Citizenship by Investment?

Percentage of The Annual Expected Return on Real Estate Investment in Turkey

One of the most important advantages of real estate investment in Turkey is the guaranteed annual return, which is often estimated at up to 10% of the basic property value.

The more seriously evaluated the property choice, the greater the return on it, based on several important points:

  • Accurate market study
  • Choosing the right location according to the goal of investment
  • Determine the appropriate budget
  • Property type and age
  • Facilities near the property
  • Annual property value profit rate

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Annual Average Rate of Return on Real Estate Investment in Turkey

The percentage of the property’s value that is realized as a profit each year, typically ranges between 10% and 30%, which is considered a very high rate.

If the investment plan is carefully examined before being adopted, it can be accomplished in a direct way.

Therefore, if the investor follows the following steps, he will ensure the highest annual profit rate on the property:

First, choosing the right country: Since Turkey is currently the first choice for all investors, you will not regret choosing it as a place to invest your money, especially because of the high security of financial transactions in it.

Second, choosing a trustworthy real estate company: Legal real estate agencies are keen to make the process easy and safe for the investor in a way that exempts him from losing any additional money randomly.

Third, choosing the right property: This is done by following the steps we talked about previously, and we have already detailed them in many articles on our blog.

Fourth, choosing the right time: Buying a property when it is at its peak is never a successful investment, and for this reason, dealing with a real estate agent is very crucial, because the right consultant will make sure to choose the time when the value of the property falls to its maximum limits to buy it, and then sell it when prices rise again.

Read more: Comprehensive Guide To Turkey’s Development And Growth 2022

The Best Return on Real Estate Investment in Turkey

Finally, we can say that the best return on real estate investment in Turkey is essential for any investor, because it clearly shows whether the property is worth it or not. 

We should also emphasize the feasibility of real estate investment in the Turkish market because of the many advantages that it guarantees for foreign investors.

As foreigners cannot obtain real estate residence in other European countries as easily as they can obtain it in Turkey.

And do not forget the possibility of obtaining Turkish citizenship when buying a property worth 400,000 dollars, and obtaining with it all the rights of a Turkish citizen, in addition to a passport that is among the strongest in the world.

Read more: How to Find The Best Real Estate Brokerage in Turkey?

Read more: The Best Analysis of Property Prices in Turkey

Frequently Asked Questions about Return on Real Estate Investment in Turkey

  1. How to calculate return on real estate investment in Turkey?

    In order to calculate return on real estate investment in Turkey, the value of the initial cost should be subtracted from the initial property value.

  2. What is a good return on real estate investment in Turkey?

    A good return on real estate investment in Turkey can be done after choosing an appropriate property in a strategic location.

  3. How much return on real estate investment in Turkey?

    The initial cost should be subtracted from the initial property value in order to calculate the return on real estate investment in Turkey.

  4. How to calculate annual return on real estate investment in Turkey?

    The percentage of the property's value that is realized as a profit each year, typically ranges between 10% and 30%, which is considered a very high rate to calculate the annual return on real estate investment in Turkey.

  5. How to figure the rate of return on real estate investment in Turkey?

    In order to figure the rate of the expected return on real estate investment in Turkey = (current property value – initial investment cost) / initial investment cost.

  6. How long will it take to see return on real estate investment in Turkey?

    After 5 years of sale is the best time to see the best return on real estate investment in Turkey.

  7. What is the return on investment in rental real estate?

    The real estate rental return on investment in Turkey currently ranges from 10% to 15% of the original property value, for commercial properties.  As for residential ones, it is between 5% and 8% in most cases.

  8. What is the return on real estate investment in Turkey?

    The return on real estate investment in Turkey is essential for any investor, because it clearly shows whether the property is worth it or not.

  9. What is the average return on real estate investment?

    The estimated increase in the price of the property is 10 percent each year, and the monthly real estate rental return on investment in Turkey is less than 400 dollars, and the percentage of increase in the monthly income in the next year is 25 percent.

  10. How do you calculate return on investment for real estate in Turkey?

    A simple way to calculate return on real estate investment in Turkey is (current property value – initial investment cost) / initial investment cost.

  11. Is real estate investment in Turkey profitable?

    Real estate investment in Turkey is one of the most profitable investments for the short or long term with high monthly returns.

  12. What is the typical return on real estate investment in Turkey?

    The typical return on real estate investment in Turkey is a long-term investment with a percentage of 3% to 4%.

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Do you know what the benefits of buying a property in Istanbul? Contact me to find out why!

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