A Complete Guide to Invest in Turkish Commercial Properties

Turkey offers a wide range of benefits for commercial property investors, mainly due to its strategic location, tourism industry, and economic advantages. Investing in Turkey unlocks both a high-yield business and a solid rental income.

If you are interested in buying a business in Turkey, here is your guide. This article covers everything about investing in Turkish commercial property, from real estate types to usage purposes and the legal process.

Why Invest in Commercial Real Estate in Turkey?

Commercial properties are one of the best investments in Turkey. Here are the primary reasons to make commercial real estate investments in Turkey:

Strategic Location and Logistic Power

Turkey has a prime location at the crossroads of Europe and Asia, offering direct reach to global opportunities. Its modern transportation system allows easy access from various countries. Likewise, the country has an effective logistics infrastructure. Its airports and ports make Turkey an attractive destination for business minds.

Tourism Landscape

In 2023 alone, Turkey hosted 49 million tourists, mostly from Russia, Germany, the UK, Bulgaria, and Poland. Coastal cities like Antalya, İstanbul, and Mersin receive record-breaking visitors each summer. The stable increase in tourist arrivals has a positive impact on the hospitality sector.

Low Prices with High Returns

Buying commercial real estate in Turkey is budget-friendly, even in commercial hubs such as İstanbul, Ankara, and Mersin. Regardless, they present an attractive Return on Investment (ROI) and rental yield. As long as you take smart steps, your property will be beneficial for your short and long-term financial goals.

Choosing the Right Property for Investment

An important step to making use of Turkey’s investment opportunities is choosing the property wisely. Note that location matters. Aim for proximity to the beach, hospital, school, shopping center, and public transport. This way, the property will have higher visibility and a bigger reach to target customers.

Turkish commercial properties come in a range of types that meet different goals. Here are the three broad categories:

Hospitality and Residential Properties

Buying a hotel or holiday rental is a good way to benefit from Turkey’s tourism landscape. This allows you to have a stable short-term income and meet your investment goals quickly. Buying a multifamily residential is also beneficial, bringing long-term cash flow. You can work with a property management company to find tenants and improve your property’s presentability.

Retail and Service Properties

This category includes malls, shops, supermarkets, cafes, restaurants, bakeries, hospitals, pharmacies, and more. You can take advantage of these properties in two ways: renting or operating.

Renting out your property to a business is a good way to have a stable cash flow. Your lease contract will likely last long. Depending on your tenant’s occupation, you can access higher rental income.

If you choose to operate your business in Turkey, you will have a world of opportunities. You can decide on your business category based on your interests and educational background.

Commercial Land

Commercial land is a plot that is zoned for commercial purposes. Commercial lands are a smart investment choice, bringing high returns on lower purchase prices.

Where to Invest in Commercial Property in Turkey?

İstanbul, Antalya, Mersin, Ankara, İzmir, and Trabzon are the best places to invest in Turkey. Each of these cities presents attractive opportunities for commercial property investment. Let’s explore them further:

İstanbul

As Turkey's center of commerce and culture, İstanbul has the perfect atmosphere for retail, service, and hospitality properties. In 2023, the city welcomed over 20 million international visitors, making it one of the most visited cities globally. This popularity ensures that commercial properties in İstanbul can reach numerous customers a day, particularly in Levent and Kadıköy. Additionally, İstanbul is home to top-notch co-working spaces, making it a perfect place for office investments.

Antalya

As Turkey’s top holiday destination, Antalya attracted over 16 million visitors in 2023. Thanks to the tourism landscape, the hospitality sector stands out the most. Hotels, restaurants, cafes, and beachside resorts hold an unmissable investment potential, offering high rental income and ROI rates.

İzmir

Located on the Aegean coastline, İzmir offers the perfect environment for commercial properties. The city features a unique blend of holiday lifestyle and modern amenities. İzmir’s strategic location, dynamic culture, and tourism landscape increase its value, offering attractive opportunities for business owners.

Mersin

Mersin, located on the Mediterranean coast, is both a tourist attraction and a growing commercial hub. The recent opening of Çukurova International Airport is likely to boost its economic strength, hinting at an increase in tourist and business investments in the upcoming years.

Ankara

As the capital city of Turkey, Ankara pictures a dynamic business atmosphere and a powerful economy. The city’s population of 5.8 million drives demand for retail stores, office buildings, hotels, and service properties. Ankara has a steady economy, ensuring a fruitful business investment.

Trabzon

Located in the Black Sea region, Trabzon is another great place to buy commercial property in Turkey. The city features a youthful population, modern infrastructure, and powerful logistics. Commercial properties in Trabzon, particularly in hospitality, commerce, and manufacturing, offer lucrative income. If you want to learn more about Trabzon, read our page on opening a business in Trabzon.

FAQ

Q. What are the key factors to consider while investing in commercial properties in Turkey?
A. The most important factor is the property’s location and intended use. Proximity to key amenities such as the city center, tourist attractions, the sea, malls, main roads, and public transportation is crucial. Additionally, you can consider the potential for future development in the area. This will hint at the value increase and return on investment.

Q. Can foreigners open a business in Turkey?
A. Yes, foreigners can easily open a business in Turkey. Whether you want to open a hotel, restaurant, cafe, or office, Turkey’s laws favor your goals. Getting legal assistance may be beneficial to navigate the process better. For more details, you refer to the foreigner’s guide on “Establishing Company in Turkey”, published by the Ministry of Trade.

Q. What are the legal requirements for purchasing commercial real estate in Turkey?
A. You will need to pay a Title Deed Fee, Property Tax, and Income Tax. If your country has a double-tax exemption agreement with Turkey, you can avoid paying the income tax. Additionally, you must open a bank account, get registered, and get a title deed transfer. For more information, read our Turkish property-buying guide.

Q. Is commercial or residential real estate a better investment?
A. Both types can be highly profitable, depending on your lifestyle and financial goals. Commercial real estate in Turkey allows you to run a business or access high rental income. They also bring along long-term leases and stable tenants. On the other hand, residential real estate is a more flexible option. You can use your property as a holiday home or primary residence, as well as a rental income source. Ultimately, your decision must align with your expectations.

Ready for a Lucrative Step? Contact Us Today!

If you are planning to expand your investment portfolio or start an exciting business venture, commercial properties are a perfect option for investing in Turkey. Whether you are looking for hospitality properties, retail services, or commercial land, you can find a wide range of options tailored to your needs. Take a look at our website to explore commercial properties in Turkey. Also, contact us to claim 360° real estate services.

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