Commercial property is real estate that is used for income. These properties can be used for different reasons. These may include malls, banks, offices, restaurants, or shops.
Briefly, it is a property where money is earned by operating it. For example, a factory provides a commercial profit. You get profit money with the activity in it. An office is a commercial property as well. You work in it and get money. However, a house is not commercial real estate unless you rent it out.
Commercial property investment in Turkey is one of the best commercial property investments among immovable real estate. Because location alone can determine the value of your commercial property, you want it to be in a great location. Therefore, your commercial real estate investment in Turkey will always gain value.
Moreover, the Turkish government is currently working to invest in the real estate sector by promoting investments in the country. The government has taken steps such as exempting investors from partial and full certain taxes and granting exceptional Turkish residence and citizenship if they have commercial properties having a certain value.
Tips for investors in commercial property in Turkey are as follows;
- Make a Business Plan
- Evaluate Commercial Property Well
- Investigate the Location of Commercial Property
- Work With a Real Estate Agent
- Find the Most Profitable Commercial Property
- Learn How To Make Money From Your Commercial Property
1. Make a Business Plan
A commercial property investment business plan is extremely critical. For this, you need to know your competitors well and have an idea of their future steps. You should also set your expectations from the deal and act accordingly.
Information such as where commercial properties in Turkey are, at what prices, location, and how they will contribute in the future is significant. For that, you can use the internet to avoid missing opportunities. You can choose the most accurate one among the real estate ads given on online sites and determine a roadmap.
2. Evaluate Commercial Property Well
When making commercial property investments, it should be checked whether the areas such as the warehouse or basement of the workplace are in the title deed. Since places such as warehouses or basements will be used as kitchens, especially in properties used as restaurants, the deed should be carefully examined.
At first glance, customers determine the quality of the workplace according to the design and layout there. A workplace designed with a pleasant design, where luxury goods are used, will make customers happy to be there. A renovated and spacious workplace will be attractive to customers. So see if the design of your commercial property is suitable for your business purpose.
3. Investigate the Location of Commercial Property
Location is the most critical issue for commercial property investment. You need to choose the best place to invest in commercial property. Your property should be in a central location, easily accessible, and suitable for the type of business. Keep in mind that although main streets and centrally located places are more expensive, you will earn more in the future.
Investors can buy commercial properties at affordable prices based on the square meter of the property. The most important issue here is the location of the real estate. Investors earn high profits by renting commercial real estate, which they buy at affordable prices, or by selling them when they increase in value after a few years.
There are different business areas in commercial real estate. Sometimes it is necessary to get special permissions depending on the work you will do or will do. For example, the sale of alcohol is prohibited within 100 meters of a school or mosque in Turkey. If the prohibition is not complied with, the alcohol license of the workplace is revoked. Special situations and legal issues like this should be investigated, and the necessary special permissions for the workplace should be obtained in advance.
It is preferred that there is a car park belonging to the workplace for the employees or you, or a car park that you can use in the immediate vicinity. Being close to public transportation such as a bus stop, metro station or taxi rank makes the property more valuable. It will be an advantage in every respect that the employees and you have easy access to the workplace.
4. Work With a Real Estate Agent
Investors can start fresh with the real estate experts of Realty Group. RG will guide them through all the necessary steps to find the property that best suits their needs at a competitive price. Investors can check out our portfolio and contact us. They will be able to find the best commercial investment property for sale.
5. Find the Most Profitable Commercial Property
You are thinking of buying commercial property for investment. This property will be for commercial use, such as an office or shop. When buying a commercial property, it is important that the tenant is reliable, and that you can rent the place quickly.
One of the main issues to be considered when buying an office or shop for commercial property investment is the smoothness of the proportional relationship between rental income and price. Office investments, especially developed and made in the central business districts of the city, are among the most profitable investments.
6. Learn How To Make Money From Your Commercial Property
Any property turns into a commercial property when provides an income. There are important points in terms of making good money from your property such as operating income, the gross unit price per square meter, building construction quality, facade status, state of supply-demand balance in the region, the status of the tenants, etc.
You can use these methods to make money from your commercial property;
- Buy, wait and sell as a method
- Entering the trade
- Buying a house on credit, making payments for a few years, and then finding someone who will pay you more than it costs you
- Buying land in developing areas instead of buying high-priced housing in city centers
How to Invest in Commercial Property in Turkey?
If you want to invest correctly and keep your money multiplied in your pocket, it is very important to make the right commercial property investment.
Commercial property investment is more profitable than residential investment because of the high guaranteed rental income. Especially if it is purchased to operate, it amortizes itself in 3 years, while in the case of leasing, it pays for itself in 7 to 10 years.
The person who is renting to use the workplace takes care of the real estate and since the first job is to pay the rent, there is no such thing as not getting the rent money. You need to make a notarized agreement for residential or commercial rentals.
How to Start a Commercial Real Estate Investment in Turkey?
Investing in commercial real estate primarily depends on the budget. It is clear that the total cost of buying a commercial property in Turkey, including the price, legal fees, and other costs, will cost more than paying rent, at least for the first five years. However, owning the property will be much more beneficial for the next five years.
While making this investment, you should consider whether you want to start your own business or invest and profit from rental income. If you are going to do business, it may be more appropriate to rent a property as a start. Owning a property, on the other hand, will give you more freedom to customize the interior design according to your preferences. First of all, everyone can become a commercial property owner by determining the size and in which commercial unit they want to buy a property and when the legal proceedings are completed by meeting with the real estate agents.
What are the Advantages of Investing in Commercial Property in Turkey?
Commercial property investment always pays off. The advantages of commercial property investment are as follows;
- Firstly, rental return on commercial investment is always much higher than residential rental income.
- While the residential rental agreement is made for one year, the workplace rental agreement is generally made for 5 or 10 years in Turkey.
- Business expenses are less than homes. Homeowners have to make repairs themselves in cases that require repairs. However, those who rent the workplace have to cover all the expenses of the workplace and pay the taxes.
- Buying and renting places such as hotels, offices, restaurants, or cafes with loans provides much greater advantages. You can take advantage of commercial investment property loans with affordable interest rates and easy payment plans.
Is Commercial Real Estate Investment Profitable in Turkey?
Turkey ranks 14th in the world in terms of commercial real estate investment. Since Turkey is at the forefront of the global market with its cost of living, transaction cost, growth rate, and tourism attractiveness in the recent period, any investment in Turkey will bring you profit.