After Turkey turned into a gateway that attracts smart investments and economic business from the East.

Learn about the most important points of difference between commercial and residential Turkish real estate

Date:

Thursday, January 12, 2023

After Turkey turned into a gateway that attracts smart investments and economic business from the East.

After Turkey turned into a gateway that attracts smart investments and economic business from east and west, it became a destination for those looking for excellent headquarters to launch commercial and investment activities. Recent years have greatly contributed to attracting investors. Buying real estate in Turkey
is now faster and easier than ever before as changes in legal procedures mean that in many cases real estate in Turkey can be purchased within 24 hours only VAT reductions help increase purchasing power and to enhance buyer confidence it has become a profession The sale of real estate is also strictly regulated and real estate agents now need to be fully registered.
Therefore, it is necessary first to differentiate between the two most common types of real estate, which are commercial real estate and residential real estate, as well as knowing the advantages and disadvantages of investing in each of them, in order to determine which type of them you can invest in.

Turkish commercial real estate
is that real estate that is not used for residential and living purposes, it is those buildings (industrial real estate) used for offices and companies.
The commercial real estate market in Turkey receives special attention and is different from the residential real estate market. Where potential hotels, offices or shops are evaluated in a way that guarantees the success of the investment and its fruits.
Attractive prices per square meter are a major attraction factor. But market conditions remain the same and certain aspects such as location are of paramount importance.
Advantages of commercial real estate:

The owner of the property does not have to deal with the expenses related to the repair and maintenance of the property or its major development because in many cases he is a tenant and will deal with the property in a way that suits his work temporarily.

The money flow is excellent for a long period of time because the lease contract can extend for a long period of time, up to 6 years or more.

The owner of the property is not required to deal with the tenants, especially if the investment is large, he is not required to solve their problems or to collect rental costs because large real estate investments are often managed by real estate management companies whose mission is to deal with all such matters without the need to bother you.

Tenants have good money because they are commercial or engaged in trading and selling.

Cons of commercial real estate:

Tenants often rent a place to run their business in difficult economic conditions, which makes it possible for them to leave quickly before the lease contract expires, and this matter will leave the owner with an empty space without rent or ownership for a long period and having to cover operational or continuous costs such as electricity, water, maintenance and other services until Find a new tenant.

Investing in the commercial real estate field requires a lot of money to invest, knowing that bank loans for this type of real estate are much less than residential real estate, and therefore you must have a large amount of money in your possession before thinking about this type of investment.

The difficulty of finding tenants is sometimes one of the drawbacks of this type of real estate, and sometimes it is difficult to find someone who pays the required amount for rent.

It is also difficult to sell the property because the demand for commercial real estate as buying or owning is not strong enough.

Residential real estate

Residential properties are those that are used for residential purpose (living in) only, such as apartments, villas, etc., and are not used for any commercial, industrial, or similar purpose.

Advantages of residential real estate:

Ease of finding a tenant in residential real estate because people are always looking for a house or apartment to live in.

Investing in residential real estate does not cost as much as commercial real estate.
Investment continues in this type because people do not tire of searching for a place to live, and the financial flow may be small compared to commercial real estate, but it continues.
The place will not be empty at any time, whether there are difficult economic conditions or not. The
ease of selling residential real estate, especially if it is in an attractive area, close to vital sites, and the presence of public facilities in it.

Cons of residential real estate:

If you want to invest in the field of residential real estate, then you must deal directly with the tenants and find solutions to their problems yourself, because contracting with a real estate manager may cost you more than the rental fees.
You may face problems such as not paying the rent on time and also not leaving the house when the lease term ends.
Some tenants will cause you some damage to the property, which will cost you the repair and maintenance of the property after the tenants leave and before renting it to another person, thus paying an amount for maintenance or other costs.

In all cases, real estate investment in Turkey remains one of the most successful and safest types of investments, as it has a prestigious rank among the world's eighteen strongest economies, and in years extending to 2050 it will be among the world's fifteen most powerful economies.

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