Investment Strategies in Turkish Real Estate: Off Plan Projects, Near Completion or Ready to Move Projects and Exit Plan

Turkey is a developing economy, and like any emerging nation, it has the potential to achieve high rates of economic growth. However, it is also known for its instability, much like any living organism in the process of growth. For instance, if you measure the height of a baby today and again a year later, you will notice a difference because it is a growing organism. On the other hand, measuring the height of a 40-year-old over the same period, you are unlikely to see any change because they are fully grown. While developing organisms have high potential for growth, developed organisms have established capabilities. The same principle applies to economies.

Off Plan Projects: High Potential, High Risk

Now, let’s delve deeper into the topic at hand: investment. Specifically, we are discussing where to invest in Turkish real estate: off plan projects, near completion projects, or ready-to-move projects. It is important to note that higher potential returns often come with higher risks, and we will address how to mitigate these risks later in this article.

Starting with off plan projects

These are essentially developments in progress within a developing country. In other words, they are projects with high growth potential in a country with high growth potential. This makes them highly profitable, but also highly risky. We won’t go into too much detail here to keep the article concise, but you can refer to our detailed write-up on off plan projects for more information. The key takeaway is that if you play your cards right, off plan projects can be much more lucrative compared to other options. Short term Exit Plan

Near Completion Projects: Stability in Demand

Moving on to near completion projects, these are typically located in city centers with a population rate 20% higher than the national average. There is likely to be stable demand in these areas, and if there are significant government infrastructure projects underway, such as new public transportation, hospitals, parks, etc., the value of these projects is likely to increase. Shorten with AI

However, this appreciation in value may take time, at least three years. In metropolises like Istanbul, where the demand for housing is insatiable, the quality of the project and the sales strategy of the developer play a crucial role. Prices can increase by an average of 10-15% every three months from the start of the project until completion, benefiting early investors.

Here, we are talking about real value appreciation, and I have witnessed times when the average price increases in Turkish Lira reached around 30%. Medium Term Exit PlanShorten with AI

Ready to Move Projects: Lower Returns, Lower Risk

Finally, let’s talk about ready-to-move projects. These projects offer lower returns but are also less risky. However, they are not the most optimal option for investment. One of the challenges in developing countries is that rental yields do not keep up with the rapid increase in property prices, which can disrupt the return on investment calculations for investors. However, if an investor is willing to hold onto the property for at least three years, they are likely to see a reasonable return on their investment. Medium and Long Term Exit Plan

Making the Right Choice

In conclusion, well-chosen off-plan projects, with the right developer and contract, can provide the highest returns in the shortest amount of time. Near completion and ready-to-move projects should not be purchased with the expectation of short-term gains and desired exit plan. Their value may increase, but this takes time and is often dependent on large-scale government infrastructure investments.

Partnering with Estates Istanbul for Your Investment Journey

When considering an investment in Turkish real estate, partnering with a knowledgeable and experienced company is crucial. Estates Istanbul offers a wealth of expertise and a comprehensive understanding of the local market to guide you through your investment journey. Our reference source is TUIK, Turkish Central Bank and all other government official sources. Whether you are interested in off-plan projects, seeking stability in near completion projects, or looking at ready-to-move projects, Estates Istanbul is dedicated to helping you make the most informed and profitable investment decisions. Call us today

Here are some other articles we recommend reading on the subject:

• How to Choose the Right Off-Plan Project?
• What Does Developed Economy and Developing Economy Mean?
• The Impact of the Right Contractor on Profitability
• The Influence of a Project’s Story on Investment Returns
• The Effect of Marketing on Investments: Investing in Show is Like Writing on Water
• The Investor’s Story in Investment