How to profitably invest in commercial real estate in Turkey: real examples, risks and returns

In recent years, Turkey has taken a strong position in the top of investment-attractive countries for buying commercial real estate. If earlier the attention of foreign investors was primarily focused on the residential segment, today the commercial real estate market is actively developing.

Why is this direction gaining momentum?

• Opportunity to receive income in currency (euros or dollars)
• Comparatively low prices in relation to the EU markets
• Simplified purchase procedure for foreigners
• The flow of tourists - more than 50 million per year
• Growing business sector: IT, logistics, finance, HoReCa
• Investments give the right to apply for residence permit or Turkish citizenship

In parallel, the country is experiencing rapid development of infrastructure: new airports, business parks, hotel clusters. All this fuels the demand for quality commercial real estate.

What formats of commercial real estate should be considered

Turkey is a market where different income models are possible for investors. There are many commercial real estate formats:

Stores and street retail

Ideal for passive investments. Buying a store or boutique on a busy street in Istanbul, Bodrum or Antalya can yield 8-10% per annum.

Offices and co-working spaces

Strong growth in demand for office space is seen in Istanbul and Ankara, primarily driven by IT companies, start-ups, and multinational corporations.

Aparthotels

A format that allows investors to make money all year round. The demand for daily rent in apart-hotels in Antalya, Alanya, Bodrum is stable.

Mini-hotels

A popular segment with a yield of 10-15%. Convenient for investors who plan to engage in parallel management or transfer the object into trust management.

Warehouses and logistics

Due to the growth of online commerce, the demand for warehouse space is steadily increasing in the Istanbul and Izmir area.

How quickly commercial real estate in Turkey pays off

The average profitability of commercial real estate in Turkey ranges from 6% to 12% per annum in currency. In some cases (for example, mini-hotels with competent management) can reach 15%.

Examples by segment

• Stores on Istiklal Street (Istanbul) - 8-10 years payback period
• Mini-hotels in Alanya and Bodrum - 6-7 years
• Aparthotels in Antalya - 7-8 years
• Office space - 10-12 years
• Warehouses - 8-10 years

It is important to understand: well chosen location, quality renovation, working managing partner can reduce the payback period by several years.

Tips for investors: how to choose commercial real estate in Turkey

Location is the key to success

Central tourist streets or dynamic business districts will give the most stable profitability.

Management - don't skimp on professionals

Working with an experienced management company ensures regular payments and high occupancy rates.

Rental strategy - a flexible approach

A combination of short-term and long-term leases can often increase the average annual income.

Legal cleanliness of the transaction

There are still some properties in Turkey with incomplete documents. A professional lawyer can help to avoid risks.

Main risks for investors

As in any market, there are factors to consider in Turkey:

• Currency fluctuations: most rates are pegged to the euro/dollar - a plus for the investor
• Seasonality: some resort regions are characterized by pronounced seasonality
• Over-supply in certain areas: it is important to choose locations that are in demand
• Legal nuances: checking permits for the use of the object as a commercial one is a mandatory step

Plus you should be prepared for the fact that the bureaucratic processing of transactions in Turkey takes a little longer than in the EU.

Why now it is profitable to invest in commercial real estate in Turkey

1. Prices in currency are still interesting for foreigners against the backdrop of the falling lira.
2. Tourism is recovering at a record pace (according to TURSAB, more than 55 million tourists are expected for 2025).
3. New financial and technological centers are being created in Turkey - Istanbul is already being called "the new Dubai of the Eastern Mediterranean".
4. Citizenship for investment remains affordable (the threshold is $400,000).
5. The development of e-commerce stimulates the growth of the logistics sector.

Is it worth investing in commercial real estate in Turkey right now

In 2025, the Turkish market is still one of the most promising in the region. With the right choice of object and location you can get:

• High returns in currency
• Quick payback (6-8 years for apart-hotels and mini-hotels)
• Capital growth - the cost of quality properties is steadily increasing
• Opportunity to obtain Turkish citizenship

Commercial real estate in Turkey - this is primarily an instrument of active investment, which can not just "save" capital, and multiply it!