Turkey’s largest city Istanbul hosts millions of investors every year from every corner of the world. Since Istanbul investments generate a high return of investment, the amount of being invested into Istanbul by international investors, increases each year. Annual direct foreign real estate investments are expected to reach 10 billion USD in 2022.
Apartment investment in Istanbul
Istanbul investments are highly profitable and have great returns of investments. Investing in a residential property in Istanbul generates around a 12-15% return of investment. Apartment investments in Istanbul can be sorted as buy to let investments and investments with price appreciation purposes. Small apartments which are bought for buy to let purposes generate 6-7% of rental income per annum. Besides that, if the apartment is furnished rental income can be around 9%.
For purchases with price appreciation purposes, the annual price increase reaches up to 12% while the rental income is lower as 3-4%. Around all over the world, 15% return of investment (ROI) ratio can be accepted as a high return of investment rate.
Commercial Investments in Istanbul
Commercial Istanbul investments are also another type of investment that is preferred by international investments. Shop, office and hotel investments in Istanbul are the prior choices of investors. The return of investment in commercial property investments in Istanbul is similar to apartment investments. However, commercial property investments are more advantageous for the higher budgets than 1M USD.
The reason why commercial investments are more advantageous for higher budgets is the rental capability. For instance, it may take longer to find a tenant for an apartment with 5000 USD of asked rental price. However, for a commercial property such as a shop in a vibrant street, it may take a day or two to find a tenant with 5000 USD asked rental price. In addition to this, for the commercial properties in Istanbul, it is possible to make longer term rental contracts such as 5 or 10 years. Therefore, for the commercial properties, rental capability and return of investment in terms of rental income are higher for the budgets over a certain limit.
Land Investments in Istanbul
Land Investments in Istanbul is also a very popular type of investment. Usually, land investments generate a return of investment in terms of agricultural activities. Besides this, it is also possible to rent out land to the firms who need space for storage. The return of investment for the lands in terms of agricultural activities or rental are lower in comparison with the apartment or commercial properties. However, if the planning of the area where the land is changed and the land gets a construction permit the price of the land can increase over %200.
Real Estate investment in Istanbul
The investment in Istanbul that you are willing to make, must be analyzed and chosen very carefully to get the best return of investment. We as Century21 Sinerji are proudly serving investors with our professional team for more than 10 years. To learn more about the best Istanbul Investments. You can contact us.