Attention to Turkey’s commercial real estate has soared in the pandemic, but especially last year. After all, many overseas buyers moved to the country for permanent residence and looked for beneficial real estate options, like villas in Turkey for sale, to create a business. Let’s consider the following opportunities, which will help you purchase the best commercial project in Turkey.
The Demand For Commercial Property In Turkey
Experts note that the demand of some buyers has recently shifted from residential projects in the country to commercial ones. The number of requests from those applying for citizenship has increased significantly. The explanation for this, oddly enough, has to do with restrictions on issuing residence permits. As you know, many popular areas are closed for obtaining a residence permit. This means that it is no longer possible to earn money by renting out long-term residences to foreigners. That’s exactly what those who wanted to get a Turkish passport did: they bought several apartments and rented them out “to obtain a residence permit.” Nowadays, such owners have to put apartments up for sale on the domestic market or offer them for short-term rent.
It turns out that it is easier for applicants for a residence permit to consider commercial real estate, including for income generation.
Vivid Examples Of Turkey’s Commercial Properties On The Mediterranean Coast
The Turkish collection has its own commercial properties for every taste and budget, and individual offers from private owners on the secondary market in different areas of Alanya and Antalya. Investors and buyers will definitely find the right property with all the necessary amenities for any purpose here. For example, these are shopping malls where one floor is occupied by discount stores of world-famous brands, and the other — by small commerce such as textiles, leather goods, souvenirs and service companies. Some brokers may offer branded shopping malls to investors. Moreover, almost all of these areas have tenants. These commercial projects can generate a yield of 8.3% per annum at a price of €192,500. Of course, you can purchase several properties to obtain Turkish citizenship. These commercial spaces are quite different — both with tenants (with valid contracts for up to five years) and vacant.
The interests of the companies remained unchanged. As before, the most popular options are retail space on the entrance floors. You can pay less attention to the condition of such properties, as the tenant is ready to repair them. It is easy to find a lucrative option even in the busiest place. For example, there are vacant commercial projects in the centre of Alanya, on Ataturk Street.
Turkish Citizenship In The Current Circumstances
If the buyer applies for citizenship, he should check all the parameters of the transaction as thoroughly as possible — the Turkish authorities will do the same. As you know, the estimated value of an object is important for obtaining citizenship, which can be reflected in the cadastre. However, real estate prices in the local market are very high, and old projects are priced the same as new ones. Sometimes, the cadastral value may be higher than the sale price.
On the other hand, it is not uncommon for the last owner to have the property for three to four years or less. And, if necessary, he can overestimate the estimated value without additional tax expenses only for real estate owned for more than five years. As prices have increased significantly in recent years, the property is likely to be priced more expensive, and the owner will have to pay income tax. Not everyone goes for it.
Last but not least, the rental yield in shopping malls is 5-6% per annum in dollars or euros. With such profitability, it is impossible to raise the value of the property too much. Therefore, the market is lively and competitive.
When Will The Turkish Real Estate Market Recover? Expert Opinion
Some experts have such an opinion as real estate prices in Turkey may rise in 2024. More precisely, the market will begin to recover in six months. If the Turkish authorities take corrective measures, the process may speed up. In general, if the market does not suffer, it will enter the stage of remission for six months.
According to the Turkish Institute of Statistics (TUIK), home sales in Turkey fell by 20.6% in November compared to 2022. A total of 93,514 properties were sold in the market. Foreigners bought 2,650,000 properties in the 11 months from January to December. Experts believe that about 2,800,000 transactions will be concluded over the year. Real estate prices, having fallen to a certain limit, have stopped in Alanya and many other cities. As for rent, the number of apartments successfully rented out decreased by 10-15%.
Turkish real estate consultants predict the following:
• The crisis will come to an end in 2024, and prices will start to grow again, because the cost of construction is rising.
• Land will be sold better than apartments and villas — it is being sold better than residences in buildings.
• The real estate market was strongly influenced by the outflow of foreign investors — their number decreased by 46.1% after the elections.
• Real estate is being sold worse because it is becoming more difficult to take out a loan to buy real estate because mortgage rates were increased.
All points are obvious, it remains to add the following — some negative discussions of the new legislation play a key role in reducing demand among foreigners. The practice shows that it takes about six months to handle objections, even after the most challenging event. Let’s remember the earthquake, which almost everyone forgot about, despite the fact that it was a great disaster, and not a legislative act that complicates people’s lives.
You Can Purchase A Home In Turkey With An Expert
You can have time to choose the best property at https://turk.estate/en/ straight away and will become a successful owner of a house or apartment in the most favourable region of Turkey in 2024. After reviewing the catalogue of beneficial properties, you will be ready to buy and invest in the most lucrative project next year — managers and brokers will come to your aid, who will accompany you at every step of the transaction — from picking up a property at the most competitive price to providing you with after-sales services. It is up to you — take the decisive step and go to Turk.Estate to find our dream home in Turkey.