Buying an Apartment in Turkey to Rent it out 2024

Over the past four years, the Turkish real estate market has proven its strength and ability to remain stable despite all crises. It has managed to achieve notable activity, especially in Istanbul, thanks to the efforts made by the government and the facilities it provided to investors to encourage the real estate market and revive it again. This had a positive impact in attracting foreign capital and causing a construction revolution that included all Turkish cities.

In addition to the government’s efforts to develop Turkish cities and equip them with the latest infrastructure and plan for many massive projects with high standards, Turkey’s openness to the world and the great fame enjoyed by its universities, offering many scholarships, as well as the tourism sector that Turkey is famous for, have all contributed to this growth. Turkey is well-known as one of the most prominent countries with tourist landmarks and the number of tourists who flock daily to visit it. The significant development that has affected the therapeutic tourism sector through the attention that the Turkish government has given to the health sector in recent years attracts more students, tourists, and those looking for the best medical services from foreigners who are looking for temporary apartments to stay in Turkey. In addition to the great job opportunities that Turkey provides every year, which attracts many new arrivals to its territories who do not have the ability to buy an apartment and are looking for suitable apartments for rent, hence the urgent need for rental homes in Turkey permanently emerged.

 

 

Expected Profit from Buying and Renting an Apartment in Turkey

If your investment is for the purpose of renting, calculating the expected return from the rent compared to the property price and including all other costs until the moment of starting to rent it, in addition to calculating the time factor to evaluate the success of the investment and its ability to add value to the invested capital and other factors, is one of the most topics that occupy the minds of investors. It represents a clear picture of the feasibility of the investment and its success.

Rental returns for 2024 in Istanbul range between 5% and 8% depending on the location of the property and the level of demand. For example, some areas such as Şişli and Fatih provide higher returns than others due to their proximity to the center of Istanbul and the places that are a famous tourist destination for many tourists coming to Turkey.

 

The Difference Between Annual and Monthly Rent

 

Monthly rent or tourist rent means renting a property for a short period, usually less than 100 days, for tourists or visitors. The difference between the price of tourist rent and the price of annual rent is mainly due to supply and demand in the market, the quality of the property and its location, and the expenses and taxes involved. In general, the price of tourist rent is higher than the price of annual rent per day, for the following reasons:

The demand for tourist rent increases, especially in popular destinations and peak seasons, and the supply decreases, as not all properties are suitable or licensed for tourist rent. Turkey has organized rules for short-term residential rentals and they are now subject to certain rules and mandatory licenses that must be done before concluding any contract. Today, Turkey is a destination for many celebrities who visit it for tourism or work and are looking for luxury villas and apartments for monthly rent.

Tourist rent provides more flexibility and comfort for tenants, who can choose the dates, duration, and location of their stay, and enjoy the amenities and services provided by the property. However, tourist rent imposes more expenses and taxes on owners, who must pay the costs of maintaining, cleaning, marketing, and licensing the property, and comply with local regulations and tax laws.

From here, the owner can compare the two prices and determine the type of rent that is most profitable for the property. In this case, the owner can earn more revenue from tourist rent, but he also has to bear more risks and troubles. The owner can also adjust the prices according to market conditions and tenant preferences.

 

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Disadvantages of Buying an Apartment for Rent in Istanbul

 

 

Buying an apartment for rent in Istanbul is a profitable real estate investment and suitable for many people who are looking for additional income or providing future income. But as with any investment, there are some drawbacks that should be considered before making a decision. Here are some of these drawbacks:

You may face difficulty in finding reliable tenants who are committed to the contract and payment at the specified dates and do not leave the property in a bad condition. This could affect your investment return and increase the risk of losses or legal disputes. You may need to pay additional fees and taxes on the property and the income you get from the rent, which may reduce your profitability and increase your monthly or annual costs. You may need to bear the responsibility of maintenance and necessary repairs for the apartment in case of any malfunctions or damages, which may cost you large amounts of money or consume your time and effort. Property owners are not allowed to refrain from renewing rental contracts without having logical reasons to do so. When renewing a rental contract, the property owner is obliged according to Turkish laws by the increase rate determined by the average consumer price index during a period of 12 months. You may be exposed to fluctuations in the real estate and economic market in Turkey, which may affect the value of the apartment and the demand for it and the prices you can collect from the rent, which may make your investment unstable or guaranteed.

Therefore, buying an apartment for rent in Istanbul may be a wise and considered decision if all aspects and influencing factors are taken into account, and if a professional and reliable real estate company is relied upon, which provides you with the best advice, consultation, and service.

 

Other Real Estate Investment Options in Turkey

 

Investors’ eyes are directed to the real estate market in Turkey because it has always proven its worth as one of the most profitable investments in addition to its severe diversity to satisfy all tastes, which made it precede its fame many global markets but it remains a not easy field and needs a lot of experience, research, and work to gain as much information as possible and analyze it. Everyone aims from his investment to achieve profit, increase his income sources, and double his capital. This article will review the different ways of real estate investment in Turkey.

Today, buying real estate for the purpose of renting it may be considered a guaranteed option because it provides a regular monthly income, but there is a wide range of options for investing in your property. To be a successful investor, you must possess the arts of research, gathering information, analyzing it, and comparing it to find the investment option closest to achieving your investment goals. Or you can rely on the experience of a trusted real estate consulting company that has experience and a good reputation in the real estate market.

 

Reselling the Property

 

Some people see that buying an apartment in places that promise a prosperous future, even if its rent is not high, may achieve a bigger profit for their investment when choosing to resell with the rise in the apartment’s price in the future.

The investor’s experience plays a big role when studying the market and analyzing prices to choose the most appropriate moment to carry out the resale operation in order to achieve the maximum benefit from the price difference between the two operations of buying and reselling.

And the properties that are resold attract a lot of investors as they possess many advantages. For example, many investors do not have the patience and enough time to wait to see their property ready and prefer to get their property as soon as possible and inspect it themselves to make sure it matches the specifications and avoid any surprises in the future and start making an immediate profit.

 

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