Buying commercial property In Istanbul can give you a lucrative ROI every year. You can go for both short-term and long-term commercial property investment In Turkey, Istanbul. There are different types of commercial properties available in Istanbul, all having different features and specifications. You have a lot of options. Here are the prominent options for investing in commercial property for sale in Turkey.
1. Hotel Apartment
Every year, big Turkish cities like Istanbul get a huge volume of visitors. Tourists prefer hotel apartments, especially those people who stay for a longer duration and visit recurrently and regularly. Hotel apartments provide a low-cost option than hotels. Hotel apartments are quite more spacious and provide a comfortable residential style. On the other hand, hotel apartments provide a highly profitable investment in commercial properties. With hotels, you get a higher rental income every year from your investment in commercial property For Sale In Istanbul. In the case of intercontinental hotel services, you get a guarantee which gives higher yields to property owners. Also, in some contracts, you get a guaranteed rental income for 20 years. In such cases, rental income percentage may range between 7%-10%.
Most customers, producers, and service providers depend highly on online shopping, especially at this time after COVID. But, when it comes to shops with a higher specialty, there is an increased importance for physical shops. People surely enjoy shopping in markets for receiving a higher appreciation post-pandemic.
The modern lifestyle depends highly on pre-prepared products, services, and technology. Also, we have a huge number of inhabitants in Istanbul. So, just imagine the number of shops, which are in high demand to offer people the products and services they need most.
The fact is that shops are a win-win commercial property that can help to achieve good returns. There are varied types of shops, such as those used for grocery, laundry, and different other purposes. This is what makes them in high demand and easy to rent. Shops are mainly used for commercial renting at a rate of 6% to 8%, from 3 (mid) to long periods like up to 5 years.
Istanbul is a huge and crowded city having a new housing concept, which is getting more and more popular and trendier. The development is in sync with what occurs on the international level. The (Home-Office) property apartment has a space that is used like an office, and this space may be like an open kitchen in a smaller space. It lets an owner use an apartment like a residence or a working place. These apartments may be found in the form of a separate building of the project and, at other times, have a separate entrance. Commercial renting gives you better returns offering both options to the user.
Also, people like to invest in towers or customised commercial buildings where flats are getting more and more spacious. You just need to pay the rent for just the core and shell, which also offers you the correct option to customise a flat as per the renting company to meet the client’s needs. Office renting is long-term renting for 5 or 10 years and gives an annual return of about 7-8%.
All properties are based on Land, making it a commercial property, which people require. Often, the land is an underestimated viable investment form. The fact is that land can be a highly profitable investment if you choose the right one and purchase it at the right time. Istanbul majorly has residential lands. There are also options for agricultural lands. But the area is small for large-scale or professional agricultural projects. You also get so many options of lands present in Istanbul, which are utilised for personal use, such as for creating a villa or farmhouse. They may also be suitable for commercial development. Bahcesehir, Basaksehir, Beylikduzu, Cekmekoy, and Pendik are Istanbul’s outer districts where you get more options to buy land.
Plan Your Target and Time
You need to have a plan and target for your investment. This is what helps you find out the numbers which you need to target and understand if they are a profitable investment. But, you can also go for short-term commercial property investment. This type of investment is only profitable if you buy an off-plan property in the early stage and then sell it off as it is ready. This lets you achieve about 20-40% percent profit in the upcoming 2 to 3 years.
A 5 to 10 years contract will be a long-term contract where you can expect a 6-10% return on investment in the long-term commercial investment. The exact return is based on the kind of shop, hotel, apartment, or office you invest in.
These are a few options with an idea of what would be the most suitable way to invest in Properties In Istanbul For Sale in the commercial market of Turkey. If you are at the searching stage, it’s best to take action where you keep all points in mind and also consult a real estate agent to achieve highly detailed information.