Commercial real estate in Turkey: a complete guide to investment 2025
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Investments in commercial real estate in Turkey are becoming more and more attractive for foreign investors. In 2025, the Turkish market offers unique opportunities to receive a stable income in currency with relatively low risks. Let's look at how to choose the right property and maximize profits from commercial real estate investments.
Why commercial real estate in Turkey attracts investors
Turkish commercial real estate market is experiencing a period of active growth. The main drivers of development:
A steady flow of tourists exceeding 50 million people annually, which creates a steady demand for commercial space. The growing IT sector and financial services require new office space, especially in Istanbul and Ankara.
The Turkish government has simplified the procedure for foreigners to purchase real estate, and investments over $400,000 qualify for Turkish citizenship. Key benefits of investing:
- The possibility of earning income in euros or dollars
- Low prices compared to European markets
- Quick transaction procedure
- Growing tourism industry
- Growing technology business sector
In parallel, there is a large-scale development of infrastructure: new airports, business centers and shopping malls are being built. This creates additional opportunities for growth in the value of commercial properties.
Types of commercial real estate in Turkey: analysis of profitability
The Turkish market offers a variety of commercial real estate formats with different levels of profitability and risks.
Stores and retail space
Street retail remains one of the most stable segments for passive investment. Stores in the main streets of Istanbul, Bodrum or Antalya show yields of 8-10% per annum.
Features of investing:
- Minimal management requirements
- Stable tenant flow
- Low vacancy rate in central locations
- Possibility of rental rates growth
Office space and co-working spaces
Demand for office space is actively growing in large cities. IT-companies, startups and international corporations are looking for modern offices with well-developed infrastructure.
The average yield of office real estate is 6-8% per annum, but quality facilities in class A business centers can bring up to 10%.
Aparthotels: year-round income
The format of apart-hotels allows you to get income from short-term rentals. In the resort areas of Antalya, Alanya and Bodrum demand for daily accommodation is stable all year round.
Advantages of aparthotels:
- High profitability (10-12% per annum)
- Professional management
- Risk diversification
- Possibility of personal use
Mini-hotels: maximum profitability
Mini-hotelswith 10-20 rooms show the highest profitability among all types of commercial real estate - up to 15% per annum. However, this segment requires active management or working with a professional management company.
Warehouses and logistics centers
The growth of e-commerce is driving demand for warehouse space. Logistics facilities in the vicinity of Istanbul and Izmir show a stable yield of 7-9% per annum.
Payback periods: real figures by segment
The payback period depends on the type of facility, location and quality of management. Average payback figures:
Fast payback (6-7 years):
- Mini-hotels in resort areas with professional management
- Aparthotels in premium locations
Medium payback (8-10 years):
- Commercial areas on central streets
- Warehouse complexes in industrial zones
Long-term payback (10-12 years):
- Office buildings in business districts
- Large shopping centers
Proper location selection and professional management can reduce the payback period by 2-3 years. Key factors to accelerate payback:
- Location in central or rapidly developing areas
- Quality renovation and modern infrastructure
- Working with an experienced management company
- Flexible rental strategy
Strategies for selecting commercial real estate in Turkey
Successful investment requires a systematic approach to analyzing the property and the market.
Location analysis: the basis for profitability
Central tourist areas provide a stable flow of customers and high liquidity of objects. Developing business districts offer potential for growth in value and rental rates.
Location selection criteria:
- Transportation accessibility
- Proximity to attractions or business centers
- Infrastructure development plans
- Real estate price trends in the area
Professional property management
Management companies with experience in the Turkish market ensure stable income and high occupancy rates. Saving on management often results in lower overall profitability of the property.
Management company services:
- Search and selection of tenants
- Financial reporting
- Facility maintenance
- Marketing and promotion
Flexible rental strategy
A combination of short-term and long-term rentals can maximize profitability. In tourist areas short-term rentals bring more income, in business districts long-term contracts are preferable.
Legal support of the transaction
Professional due diligence is mandatory when buying commercial real estate. Turkish lawyers will help to avoid risks associated with incomplete documents or restrictions on the use of the object.
Risks of investing and ways to minimize them
Any investment involves risks, which are important to consider when planning investments.
Currency risks
TheTurkish lira is subject to significant fluctuations, but most leases are pegged to the euro or dollar. This protects the investor from devaluation of the national currency.
Ways to minimize:
- Contracting in a stable currency
- Diversification of currency risks
- Hedging large sums
Seasonal fluctuations in demand
Resort regions are characterized by pronounced seasonality, which affects the occupancy of facilities. Competent pricing and work with different customer segments help to smooth out seasonal fluctuations.
Excess supply
In some areas there is an oversupply of commercial space. Careful analysis of competition and selection of undersaturated locations reduce this risk.
Legal peculiarities
Turkish law is specific in the field of commercial real estate. Checking permits for the use of the object for commercial purposes is mandatory before purchase.
The main legal risks are:
- Incomplete registration of ownership
- Restrictions on commercial use
- Tax and utility arrears
- Disputes with previous owners
Current market situation: opportunities in 2025
the year 2025 presents unique opportunities to enter the Turkish commercial real estate market.
Price advantages
The weakening of the Turkish lira makes purchases for foreign investors more favorable. Prices in currency remain attractive compared to European markets.
Tourism recovery
According to the Turkish Travel Agencies Association (TÜRSAB), more than 55 million tourists are expected to arrive in 2025. This creates additional demand for commercial facilities in tourist areas.
Development of technology centers
Istanbul is positioned as the region's new technology hub. The establishment of financial and IT centers is driving demand for modern office space.
Citizenship program
Investments of $400,000 or more qualify for Turkish citizenship. This program remains one of the most affordable in the world, which attracts additional investors.
Development of e-commerce
The growth of online commerce in Turkey is driving the development of the logistics sector. Warehouse complexes show stable growth in rental rates.
Practical recommendations for successful investment
Based on market analysis and practical experience, we can highlight the key principles of successful investment in Turkish commercial real estate.
Portfolio diversification
Allocating investments between different types of properties and regions reduces overall risks. An optimal portfolio may include offices in Istanbul, an apartment hotel in Antalya and retail space in Bodrum.
Long-term planning
Commercial real estate is an investment with a horizon of 5-7 years. Short-term market fluctuations should not affect strategic decisions.
Working with local partners
Turkish partners have in-depth knowledge of the local market and help avoid typical mistakes of foreign investors.
Regular market monitoring
Tracking changes in legislation, economic situation and tourist flows helps to timely adjust investment strategy.
Prospects for the development of the commercial real estate market
Turkish commercial real estatemarket is in the stage of active growth, and this trend will continue in the coming years.
Infrastructure projects
The construction of new transportation hubs, including Istanbul Airport and the planned Istanbul Canal, are creating new centers of business activity.
International integration
Turkey'sdeepening trade ties with the EU, Asia and Africa are driving business sector growth and demand for commercial space.
Technological development
Digitalization of the economy requires new formats of commercial facilities: co-working spaces, data centers, logistics hubs for e-commerce.
Conclusion: commercial real estate as an instrument of capital accumulation
Investing in commercial real estate in Turkey in 2025 provides a unique opportunity to generate a stable income in currency at a moderate level of risk.
Key benefits:
- High yields of 8% to 15% per annum in currency
- Fast payback of the best properties in 6-8 years
- Growth of capital value of quality objects
- Possibility of obtaining Turkish citizenship
- Diversification of investment portfolio
With a competent approach to the selection of objects, professional management and long-term planning, commercial real estate in Turkey becomes an effective tool to multiply capital.
The next steps for a potential investor are: analyzing specific properties, selecting reliable local partners and developing an individual investment strategy taking into account personal financial goals.
FAQ: frequently asked questions about commercial real estate in Turkey
1. What is the minimum amount needed to buy commercial real estate in Turkey? The minimum cost of commercial properties starts from €50-80 thousand for small stores. Quality investment properties cost from €200-300 thousand.
2. Can a foreigner get a mortgage on commercial real estate?
Yes, Turkish banks provide mortgage loans to foreigners for commercial real estate at 15-20% per annum with a down payment of 50%.
3. What taxes does the owner of commercial real estate pay? The main taxes: property tax (0.1-0.6% per year), income tax on rental income (15-35%), VAT on sale (1-18%).
4. How long does it take to formalize a purchase? A standard transaction is completed in 2-4 weeks if all documents are in place. Complex objects may require up to 2-3 months.
5. Do I need to be personally present at the purchase? Yes, the personal presence of the buyer or a notarized power of attorney is required to formalize the transaction at the Land Cadastre Department.
6. What is the average commission of real estate agents? The commission of agency companies is 2-4% of the value of the object and is usually divided equally between the buyer and the seller.
7. Is it possible to rent out a commercial property immediately after purchase? Yes, if the property has all the necessary permits for commercial use. It is recommended to check this prior to purchase.
8. What is the yield on commercial property in the center of Istanbul? In the central districts of Istanbul, the yield is 6-10% per annum depending on the type of property and location.
9. Do earthquakes affect the value of commercial real estate? Modern buildings built according to new earthquake-resistant standards do not lose much value. It is important to check the year of construction and seismic certificates.
10. Can I sell commercial real estate without restrictions? Foreign citizens can freely sell commercial real estate. The only restriction is the payment of income tax when selling before 5 years of ownership.
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