Istanbul Commercial Real Estate is your best investment choice

Real estate investment in general is one of the most successful investments not only in Turkey but also around the world. We find countries such as the United States of America, Britain, France and Spain building huge real estate investment projects to attract businessmen and to attract billions of dollars to their countries, All countries realize the importance of real estate as a source of income, which is what made Turkey take the lead in the past ten years, as it realizes the advantages of real estate investment, and although Turkey is one of the latest emerging markets in real estate investment, and according to Bloomberg magazine, Turkey is the 7th most powerful emerging economy in the world because it has its geographical location and infrastructure and an attractive environment for investment, and of course its nature as a tourist country in the first place, Istanbul, Antalya and Mugla are unique from the rest of the Turkish cities with an investment return that is the highest and most competitive in the real estate market, whether at the local level or even at the European and global level.

Definition of commercial real estate

Commercial real estate is the real estate that you can gain benefits in investments and economic business, and that brings financial returns to its owner, and Turkey is characterized by having a variety of commercial real estate, as Turkish cities are at the fore in commercial real estate, especially Istanbul, which is a preferrable destination for those looking for commercial real estate in Turkey.

Reasons for the success of commercial real estate investment in Turkey

One of the most important reasons for the success of real estate investment in Istanbul is the profits, as the profits of investing in commercial real estate are much higher than investing in residential real estate, and this is what encourages many investors to buy commercial real estate in Turkey for investment, and according to some studies, the annual average of rental returns for residential real estate in Istanbul It is about 3.5%, while the average of the investment returns for shops annually may reach 9%, meaning that you can regain the capital cycle after only 11 years, while residential real estate in Turkey may need more than 17 years to regain capital cycle.

Factors contributed in the success of real estate investment in Turkey

- The social and political stability that Turkey enjoys compared to the other countries of the region.

- Legal reforms undertaken by Turkish government to support real estate investment.

The nature of Turkish society, which combines Western European civilization and Eastern traditions.

- Turkey's tourist nature and the presence of many landmarks dating back to the Byzantine era or the Ottoman era, which was reflected in museums, temples and monuments.

Types of commercial real estate

Commercial real estate in Turkey varies, there are offices, shops, stores, hotels and other lands, which we will discuss in detail in this report:

1- Shops

It is the most preferrable among the rest of the other commercial real estate, due to the diversity of its use. AS the investor can use it as a restaurant or a café and this is the most common, or make it as a pharmacy or rent it for medium and long-term contracts for famous brands, whether it is grocery stores such as Carrefour or Bim or restaurants such as KFC and Mac Donalds or for clothes like Zara or LC Wikiki, The latter type of investment is preferred by many because it guarantees a fixed rent that is not linked to market fluctuations or tourist seasons and is not linked to emergencies such as the closure that the world witnessed during Corona pandemic.

Factors you put in consideration when buying a store

• The area in which the shop is located should be easily accessible.

• The store should be close to various means of transportation such as buses, metro, tramway, metro bus and others.

• The shop should be in a vibrant area crowded with pedestrians.

• The shop should be close to the car parks.

• The commercial store should be close to banks and ATMs.

• It is preferable that the shop be within streets with security guards and equipped with surveillance cameras.

2- Offices

Turkey is an important center for a number of industries that are imported by a large number of businessmen, and they prefer to have offices they frequent to manage import and export operations. Therefore, there are many investment projects just only for office apartments to be sold for these businessmen or to investors who rent them to other businessmen. 

criteria you should put in your consideration when purchasing an office

• The office should be close to the main roads in the city.

• The proximity of the office to the commercial centers in Istanbul. There are areas characterized by their investment nature, such as Maslak and the Basin Express highway, as the headquarters of major international companies are located there.

• The area of commercial office area should include a hotel that provides accommodation for guests and customers, with meeting rooms and excellent economic services.

• That the office has indoor or outdoor parking and valet parking, and that it has windows that can be opened in all rooms to improve ventilation.

3- Stores

Stores or Warehouses are among the options that investors prefer to buy, and warehouses are defined as “a place where the purchased or goods are placed in an organized and tidy way to be ready for use whenever we need them.”, Today, the stores are very popular for foreigners recently as an option among other real estate options. 

Factors that must be taken into account when buying a store

• The warehouse's proximity to industrial or commercial areas to increase investment opportunities.

• Its close to markets, especially in large cities such as Istanbul.

• The store has all the security and enjoys good ventilation, risk management and fire extinguishing systems.

• That the store is equipped with surveillance cameras and has a permanent security guard.

4- Hotels

Investing in hotels is one of the most popular investments in Turkey, due to the country’s tourist nature, as millions of foreigners visit it every year, and for this you can find many different types of hotels in Turkey that suit all categories, hotels are characterized by high occupancy rates throughout the year whether they are one-star or 7-star, many investors invest in the tourism sector by buying a hotel as the best investment for those looking for permanent profit in the tourism sector in Turkey.

Hotels with 3-star, 4-star and 5-star and resorts are preferred for most Arab tourists coming to Istanbul.  

Tips should be taken before buying a hotel in Istanbul

• The hotel should be newly built.

• The hotel rooms and suites are modern style.

• It is close to historical attractions, sandy beaches and the local transportation of the city, but if the hotel has a great history of attracting thousands of tourists and guests over the years, you will have definitely a good deal.

• Make sure before buying the hotel that it has a permanent permit from the official authorities, which is allowed to renew and move it to a more modern and developed stage year after year.