Benefits of investing in commercial real estate in Istanbul
Istanbul is known as the beating heart of Turkey's economy, as it is its largest city and its tourist, economic, and cultural capital. It is distinguished by its unique geographical location and beautiful nature and represents a bridge between Asia and Europe. Recently, many are trying to invest their money due to the instability in the global economy, but many people have great fears about this, so the city of Istanbul is one of the most important destinations and the best options for many investors around the world, whether they are Arabs or foreigners. The city of Istanbul in the past years to this day has witnessed a great turnout from many investors from all over The world, and this is due to the distinction of this city on the real estate and commercial levels.
• Commercial real estate
As a result of the great development that has taken place in all areas in Istanbul, the investment and real estate side has flourished, which has reflected positively on real estate and its prosperity. Today, Turkish real estate is the focus of everyone’s attention to the country’s economic and tourist importance at present, in terms of the influx of millions of tourists annually to Turkey for its beautiful and charming nature With its beaches, history, landmarks, markets, pleasant climate, important strategic location, and the rush of capital owners and investors to carry out successful and promising projects in which they realize their dreams and bring them an abundant profit on Turkish lands, especially Istanbul.
• Factors that must be available in commercial real estate in Turkey
Certainly, some factors make the property commercial and to be distinguished from the rest of the other types of real estate, and one of these factors is that the property is located in a distinguished strategic location, such as being in the center of the city, where places are crowded with people and crowded with business, and the property must have its garage for cars to park in, in addition to that, it must be in a location close to public transportation to be easily accessible. As for the area in which Turkey's commercial real estate is located, this is due to the quality of the work in which it is classified on this basis, For the property to be commercial, it must have security services and cleaning services as well. Finally, when choosing a commercial property, it is preferable to have an ATM next to it or close to it, for ease of customer service and providing their comfort.
• Pros of commercial real estate investment in Turkey
o There is no need for the real estate owner to deal with the tenants, especially when the investment is large, so the owner does not have to solve the tenants’ problems or collect rent, and large real estate investments are usually managed by real estate management agencies, which solve such issues without the need to the inconvenience property owner.
o Good financial return for a long period, as the lease contract can extend for a long period, which may reach 6 years or more, in addition to the possibility of extension.
o The tenants are in good financial condition because they are commercial or engaged in trading and selling.
o The property owner does not have to deal with the expenses related to the repair, maintenance, and development of the property, because in many cases the tenant is and temporarily disposes of the property in a way that suits his work, which makes it beautiful and achieves the purpose of the property.
• Disadvantages of commercial real estate investment in Turkey
o The difficulty of finding renters sometimes is one of the disadvantages of this type of real estate, and it is sometimes difficult to find someone to pay the required rent.
o Difficulty selling real estate due to the lack of demand for commercial real estate purchase or ownership.
o Investing in commercial real estate requires a lot of liquidity to invest in this type of real estate, knowing that bank loans for this type of real estate are much less than residential real estate, so you should have a lot of capital before thinking about this type of investment.
o Real estate investment in Turkey within commercial real estate requires big capital because it is very expensive.
o Tenants usually rent a place to run their business under difficult economic conditions, which allows them to move out quickly before the lease is terminated, leaving the landlord with a vacant space without rent or ownership for a long time and having to cover ongoing costs such as water, electricity, maintenance and many other costs Until he finds a new tenant.
In the end, we note that real estate investment in Turkey has witnessed remarkable distinction and prosperity in the past periods until our days, and indicators indicate that the future will be full of achievements and successes due to modern projects and studied plans that Turkey sets to improve real estate and commercial investment in all its cities, so real estate investment in Turkey will be A very important opportunity for all investors.