Commercial and residential real estate represent distinctive investment opportunities in Turkey, given the unlimited types available for investors to choose from. Turkey’s enabling factors present golden opportunities for investors to achieve high and successful returns on real estate investments.
Definition of Commercial and Residential Real Estate:
Commercial Real Estate:
These are units not suitable for living, specifically designed for offices, companies, shops, medical clinics, and other commercial purposes.
Residential Real Estate:
These units are designed exclusively for living and are the most popular and in-demand among investors due to the higher need for housing compared to other projects.
Types of Real Estate in Turkey:
Real estate in Turkey is categorized into several types, including:
- Commercial Real Estate.
- Residential Real Estate.
- Agricultural Real Estate.
- Industrial Real Estate.
- Public Ownership Real Estate.
- Residential Real Estate:
It further divides into several types, such as:
- Studios: Ideal for unmarried individuals or students as they are small and accommodate one or two people.
- Large apartments for families.
- Duplex apartments: Consisting of two floors with an internal staircase, suitable for large families.
- Triplex apartments: Multiple-floor apartments with an elevator inside the building, accommodating more than one family within the same large house.
- Townhouses: Similar apartments in interior and exterior design sharing side walls and featuring a small front garden.
- Twin houses: Two houses sharing one wall, each with a private entrance and garden.
- Villas: Large, independent units with multiple floors, several rooms, an internal or external swimming pool, and a large garden.
- Commercial Real Estate:
It further divides into several types, such as:
- Commercial Shops.
- Offices.
- Cafes and Restaurants.
- Warehouses or Depots.
- Industrial Real Estate: Units designed for industrial purposes, such as production centers, large factories, and research centers.
- Agricultural Real Estate: Including orchards and farms.
- Public Ownership Real Estate: Encompassing all properties owned by the Turkish state, such as mosques, schools, hospitals, churches, and others.
Differences Between Commercial and Residential Contracts:
- Commercial contracts grant tenants several powers, such as the ability to change the commercial registry and activity, with the necessity to update data in the new system.
- Commercial contracts for individuals and commercial entities authorize the documentation of electronically approved lease contracts by the Ministry of Justice.
- Commercial contracts differ from residential contracts with the conditional contract feature.
Advantages and Disadvantages of Commercial Real Estate:
Advantages:
- Commercial real estate ensures a fixed monthly income for multiple years.
- Property owners are not responsible for maintenance in the property.
- There is a company handling property issues, relieving the owner from direct dealings with the tenant and problem-solving.
Disadvantages:
- Commercial properties require significant capital.
- Economic conditions negatively impact property owners, increasing the likelihood of tenants leaving commercial properties.
- Difficulty in finding a tenant capable of paying the large amounts annually.
Advantages and Disadvantages of Residential Real Estate:
Advantages:
- It is easy to find tenants, especially during tourist seasons in Turkey.
- Investment in residential properties is less expensive compared to commercial properties in Turkey.
- Residential properties are not affected by the economic condition of the Turkish state.
Disadvantages:
- Dealing directly with tenants and solving their problems.
- Some tenants may damage property, making the owner bear the costs of repairs before renting it again.
Keywords:
Real Estate Investment
Tourism in Turkey
Investment in Turkey
