Buying commercial real estate in Turkey is an attractive option for investors looking to diversify their portfolios. Whether you’re considering office spaces, retail stores, or hotel complexes, the Turkish market offers a wide range of opportunities. However, before diving in, it’s crucial to understand the local market, legal framework, and taxation system. Working with a licensed real estate agency, like Aegean Locations, can help you make informed decisions and minimize risks.
Foreign Ownership of Commercial Real Estate in Turkey
Foreigners can purchase not only residential properties but also commercial real estate in Turkey, including hotels, offices, warehouses, shops, and more. You don’t need Turkish citizenship or a residence permit to buy these properties. One of the major advantages of purchasing commercial real estate in Turkey is the potential to obtain a residence permit or even citizenship through investment.
Reasons to Invest in Commercial Real Estate in Turkey
1. High Rental Income: Renting out commercial properties is a popular and profitable venture among foreign investors. The income from renting commercial real estate often surpasses the returns from residential properties or bank deposits. With the right approach, you can secure a stable and lucrative income stream.
2. Diverse Property Options: The Turkish market offers various commercial real estate formats, from offices in large complexes to standalone buildings suitable for various business needs. Whether you’re looking for a space in a bustling metropolis like Istanbul or a resort city, the potential for profit is significant.
Selecting the Right Commercial Property
The location of the property is critical to its success. The type of business you plan to operate will dictate the best location. For instance, if you’re opening a restaurant or a beauty salon, choosing a high-traffic area with few competitors nearby is key. In tourist-heavy cities like Istanbul, investing in commercial real estate is generally a safe bet due to the constant influx of visitors.
Best Time to Buy Commercial Real Estate
Purchasing commercial real estate during the construction phase is often the most advantageous. Developers typically offer flexible payment plans and interest-free installments. If you can wait for the construction to complete, this approach can yield significant savings. Additionally, this time allows you to prepare your business strategy and study the market in depth.
Taxes on Commercial Real Estate in Turkey
When purchasing commercial real estate, you’ll need to pay a one-time tax of 4% of the cadastral value. This tax is mandatory for all types of real estate in Turkey. Annually, you’ll also need to pay a property tax ranging from 0.2% to 0.4% of the cadastral value, depending on the property’s location. Additionally, you must obtain DASK insurance, which is compulsory in Turkey. The cost of this insurance depends on the coverage but is generally affordable.
Commercial Real Estate Costs and Investment Potential
The cost of commercial real estate in Turkey is on the rise, influenced by location, property size, infrastructure, and other factors. Despite the rising prices, commercial properties remain a profitable investment, offering protection against financial risks. With the potential for appreciation, selling your property in the future could yield significant returns.
Conclusion: Secure Your Investment with Aegean Locations
Investing in commercial real estate in Turkey is a strategic move that can offer high returns and long-term security. However, it’s essential to navigate the market with the guidance of experienced professionals. Aegean Locations is a licensed real estate agency specializing in helping foreigners purchase commercial properties in Turkey. We ensure a transparent transaction process from start to finish and assist with all your questions. Visit our sales page to explore the best commercial real estate opportunities in Turkey today!