Can you buy under-construction property in Turkey?
Under-construction property in Turkey
Purchasing an under-construction property in Turkey means getting it at a lower price than purchasing it after it has been completed.
Sometimes, the price of a residential property can increase by 20% upon delivery compared to the price at the beginning of construction. In comparison, the price of an investment property can increase by more than 100% upon delivery.
Under-construction properties in Turkey are usually attractive to investors looking for a high return on their investment. All prospective buyers of property in Turkey should be aware of the following questions:
- How can I ensure that the property will be delivered on time and meet my specifications?
- How do I choose the best construction company for a property under construction in Turkey?
- What are the details of the investment property?
- What’s the best time to invest in a project?
- What’s the best way to start a real estate project?
- When it comes to buying and selling under-construction property in Turkey, what’s the best strategy?
Answer the previous questions in detail:
- How can I ensure that the property will be delivered on time and meet my specifications?
- When talking about small and medium business people, a real estate investment requires a relatively significant capital investment.
- As a result, delaying the project delivery beyond the specified time can result in losing time and money. Even if the issue is confined only to delay, it can be tolerated; however, if it is not delivered, it will be unacceptable.
- Consider the scenario where you wish to avoid losing money on real estate investments. Before purchasing an under-construction property in Turkey, it is crucial to seek advice from an expert in the market.
- The contract you sign with the construction company during the purchase process will ensure that the project is delivered on schedule, and the extent of the fines they will be required to pay should the project be late will ensure that the project is delivered on time.
- Detailed specifications of the apartment and materials must be in the contract between the buyer and developer.
- The apartment is fully prepared and furnished in Turkey so the buyer can evaluate the quality of the materials used in the walls, floors, kitchen and bathroom ceramics, temperature control system and electrical appliances.
- Based on the construction company’s reputation, how many projects they have completed, and how accurate their delivery is, it should be a match between the apartment you saw during construction and the apartment you received upon project completion.
- Quality of materials can explain any difference in price between an apartment and one similar in size and location.
2. How do I choose the best construction company for a property under construction in Turkey?
- For finding the best construction companies, it is essential not to look at the number of projects a construction company has completed but rather the degree of commitment and accuracy in utilizing high-quality materials.
Tahincioglu:
- Tahincioglu Real Estate, one of Turkey’s leading real estate companies, is headed by chairman Ozcan Tahincioglu and specializes in retail, office, residential, and shopping mall projects and luxury hotels.
- In total, Tahincioglu has constructed projects covering over 2 million square meters. Tahincioglu’s construction company, Nida Construction, handles all general contracting requirements. Among the company’s projects are the Palladium Tower, Palladium Atasehir Shopping Mall and Residence, Palladium Antakya Shopping Mall, Nidakule Kozyatagi, Nidakule Goztepe, Swissôtel Buyuk Efes, and Congress Center. Currently, Nidapark Başakşehir and Nidapark Seyrantepe are being built, as well as Nidakule Atasehir and Nidakule Levent, which may achieve LEED Gold certification.
ARTAS Group:
- The ARTAS Group was founded in 1977 by Suleyman Etinsaya, who has over 40 years of experience and knowledge. Among the Group’s businesses are real estate, retail, and tourism.
- It is one of its leading brands with its ”Avrupa Konutlari” brand. With Avrupa Konutlari and other joint venture brands, the company has built and delivered 18.500 houses.
- ARTAS Group works on retail and tourism projects, shopping centres, and hotels. Including independent and mixed-use projects, the company has built five shopping centres and five hotels. It’s good at business administration and management. It manages hotel projects, housing projects, and shopping malls within the company structure.
- ARTAS Group provides subsectors with employment capacity and mobilization in addition to its economic investments. Over 40 years later, the Group continues to develop high-quality, peaceful places with its environment and facilities that have become symbols of quality.
Emlak Konut:
- Emlak Konut is one of the largest real estate development companies in Turkey. It’s Emlak Konut’s goal to take the next step based on consumer needs and to keep developing its real estate portfolio.
Mar Yapi:
- Recently in Istanbul, Mar Yapi has signed buildings with modern architectural style in harmony with nature and works with the philosophy of valuing the spirit of the working group for the development and access to perfection.
- It builds projects with recreational facilities that raise quality and luxury standards.
Kelesoglu:
- Kelesoglu has been involved in the real estate industry for over 35 years. In addition to providing profits to investors, the company’s projects are renowned for providing a quality of life and a clean and beautiful environment.
Karden Construction:
- Founded in Istanbul in 2002, Karden Construction has become a leading brand in the construction industry. Initially, the company built industrial buildings, then diversified into housing projects, business centres, shopping centres, factories, schools, hospitals, industrial facilities, mass housing, villas, steel structures, power plants, and infrastructure.
- Listed here are some of the most prominent names in construction in Turkey, in general, and in Istanbul, specifically. There are always new companies that prove successful in the market. Getting a free consultation from our specialized team would be best.
3. What are the details of the investment property?
- After the investment period has expired, selling it is possible and easy.
- In Istanbul, over 96% of all real estate sales and purchases come from the local market.
- You should consider a capital increase if the operational plan already exists or if it’s in construction.
- It’s easier to close the deal on time when you’re in a strategic location.
4. What’s the best time to invest?
- Get a thorough real estate consultation detailing the history of the construction company and its commitment, on the one hand, as well as find out the advantages of the investment project based on the criteria mentioned in the previous question. You can invest right away.
- A typical project takes two to four years to complete, depending on the number of buildings and apartments, the area, and the entertainment facilities, such as parks, swimming pools, and sports clubs.
- Under-construction properties in Turkey have a 25-50% return on investment, so it’s best to invest early. You can get a 100% return on a two-year project if you invest early. Even the weakest investment growth is estimated at 25%, three times more than a fully-constructed property’s highest rental income, which is 4% or 5%.
- Here’s the idea of a successful investment: you buy a property early in the building process, sell it just before delivery, and reap enormous profits.
- You’ll only lose money if you select the right property from experts in the real estate market; otherwise, your investment plan will work.
5. What’s the best way to start a real estate project?
I’ll explain it from a simplified angle so investors can understand.
- The next step is to allocate space and put up iron barriers.
- It includes digging foundations, figuring out how many floors each building has, and designing the building, such as a hospital or a car showroom. It takes a little time.
- Depending on how many towers are of this quality, the external structure has to be finished before the cladding process, taking about a third of the project’s completion time.
- About one-third of the construction time goes into the external cladding. It involves cladding and insulating each floor and exterior structures, like glass or concrete.
- During the external cladding stage, each floor will be clad with the walls and insulation materials used along with the external structures of the building, whether they are glass or concrete resistant to weather factors, consuming about a third of the project’s construction time. It’s a good strategy, but it’s rarely used in Turkey:
- The next phase is finishing the apartment’s interior with floors, wallpaper, bathrooms, and the kitchen. The rest of the construction is done in phase four.
- Entertainment facilities, gardens, and swimming pools to avoid obsolescence upon project delivery they’re usually built after external construction is done to avoid obsolescence.
Construction goes through different stages. Getting to know these stages well requires a specialist engineer, the project plan that needs to be implemented, and finally, the construction company since an investor may feel comfortable with an old company even during the early stages of construction. Construction can also be suspended as we reach advanced stages, as described in the opening paragraph. Hence, we always recommend getting professional advice before being tempted by attractive prices in construction projects.
6. When it comes to buying and selling under-construction property in Turkey, what’s the best strategy?
- Buying an under-construction property in Turkey is in the early stages of setting up the project, keeping it until the construction is done, then selling it and moving on.
- According to our plan, the property’s price under construction will rise much more than any rental return for a ready-made property, and we’ll make significant annual returns before the project is finished.
- Investors with a ten-year plan can buy and sell every two to three years, then move on to the next step. By the end of ten years, contractors who invest in under-construction property in Turkey will make over three times as much as an investor who buys a ready-made one.
If you want to buy under-construction property in Turkey or need more information about it, please don’t hesitate to contact us.