Comparison between real estate investment and bank deposit in Turkey 2023

What is real estate investment?

Real estate investment in Turkey is one of the best types of investments, because of its benefits that are in the interest of the investor. Whether through leasing or from the profit of resale, and the percentage of loss may be small, compared to other types of investments, such as investments in the financial or stock markets. Therefore, real estate investment is described as one of the best, safest, and most secure investments, in terms of capital preservation and low risk and risk.

What is the expected return from real estate investment?

There is a clear difference in the percentages of returns that are achieved. This is in view of the city in which the investment is made, the type of property, and given the person who makes the real estate purchase, the extent of his experience, and his ability to make optimal use of the purchased property, and the percentage of returns from real estate investment in Turkey is described as among the highest rates of profits in the real estate trade. at the level of Europe.

This is due to several reasons, such as the steadily rising prices of Turkish real estate annually, the great demand for real estate investment in the Turkish market, and the low percentage of taxes applied to profits resulting from real estate trade in Turkey. Given the previous factors, the profit of real estate in Turkey varies compared to the region, the quality of the property, and the field of investment, where the profit rate in some areas can reach 20% of the total value of the property per year.

Is real estate investment safe?

Real estate investment is one of the safest investments; it cannot be seized or stolen; it is not transferable, making mortgages the most reliable in most courts as a means of securing rights. In addition, real estate is unique in many cases, such as not being subject to bank bankruptcy standards, and Turkey is one of the countries where the real estate market is growing at a staggering rate.

What guarantees successful real estate investments in Turkey?

In order for successful investment in the Turkish real estate market to be achieved, it is necessary to collect complete data on the property to be invested, to invest in areas that are expected to experience intensive investment activity, such as areas of urbanization, to introduce the advice of specialists and expertise in real estate, not to risk investing in a property with fundamental problems, and to have a core base in Turkey, real estate + tourism = economic feasibility + Turkish citizenship. Millions of tourists come to Turkey annually, and it is noted that many of them - especially Arabs - visit Turkey on a semi-annual basis, and a simple calculation of the expenses paid annually will show the economic feasibility of owning and real estate investment in Turkey in the medium and long term.

Advantages of real estate investment in Turkey

The benefits of real estate investment in Turkey are various, including a constant rise in apartment prices in Turkey due to constant foreign demand, a stable and secure monthly financial return, capital appreciation, or long-term property appreciation.

That is, the value of the property after several years will increase, and thus your capital will increase, and the rental risks are low, compared to other types of investments, as well as obtaining Turkish citizenship by owning property worth $400,000, and perhaps this positivity is the best.

In particular, after the Turkish Government has allowed every investor to purchase property at the said value and to apply for Turkish citizenship with his or her family through the purchase of any kind of property, be it an apartment, office, villa, or shop.

What is meant by the term investment bank "bank deposit"?

Bank deposit in Turkey is the placement of funds and sums of money in a Turkish bank for a certain profit, or simply for a non-profitable deposit, and there is an agreement between the bank and the account holder governing the procedure for the withdrawal of funds and the bank's right to dispose of deposit funds, with guarantees that the holder of the deposit account and other related procedures.

What's the expected return on the bank investment?

The rate of return on bank investment in Turkey varies by convention, and by account type, but most Turkish banks provide deposits on local currency at a rate of up to 15%, bank investment accounts in hard currency have return rates between 0.5% and 1%, and each bank has its own terms and laws governing bank investment.

Is the bank investment safe?

Bank investment is subject to several risks, including potentially catastrophic and sudden exchange rate fluctuations, as well as the risk of bank bankruptcy, although it is unlikely in Turkey, compared to real estate and investment, real estate is completely devoid of these risks.

Advantages of bank deposit in Turkey

Bank deposit in Turkey certainly has advantages. It is a better option for those who do not want to freeze their funds in accounts without investment. One of the most important advantages is to obtain Turkish citizenship by achieving certain conditions: the minimum deposit to a Turkish bank is $500,000 or the equivalent in other currencies has fallen from $3 million to $500,000, provided that the deposit is not withdrawn for a minimum of three years from the date of application.

Which is better, real estate investment or bank deposit?

Real estate investment in Turkey is more beneficial and more secure in the conservation and development of money. Buying property in a project under construction in a vital or strategic area that will experience high acceptance, and then selling it after the project ends at a higher price, is much better than a bank deposit. Besides, what attracts investors the most is the search for apartments for sale in Istanbul and apartments for sale in Istanbul by the sea.

Real estate investment is not limited to only one type, but there is an investment of land for sale in Turkey in strategic locations that may be included in the organizational schemes of cities or the possibility of building housing complexes on them later, and then selling them later in multiples, as well as real estate development, by buying an old property and then renewing and improving it, then selling it at a higher price, buying a ready-made apartment in a project, then renting it and guaranteeing a fixed monthly return.

Which is affected by market fluctuations, investment in real estate, or investment banking?

There is no doubt that bank investment is at the center of serious exchange rate fluctuations, particularly in local currency, while real estate investment is moving away from this problem and even growing, as the investor has studied his future project well, preferably consulting secured real estate brokerage companies.

What are the most important factors that affect investment in Turkey?

There are several factors that affect investment in Turkey, and they are all positive, including the political and social stability that Turkey enjoys in the Middle East and the laws that facilitate and guarantee the rights of foreigners who wish to own property in Turkey, to the point of obtaining a lifelong residence (renewed annually) in Turkey by simply owning a property. In it, Turkey’s proximity to the Arab world, its adornment with the Arab Islamic character that is spread in all its cities, and the tolerance of the Turks with tolerant morals. Not to mention its stunning nature, with the green Trabzon mountains and the blue Bosphorus waters, the Bursa waterfalls, and the wonderful temperate climate in summer and winter, and one of the important factors is the increase in investment diversity, there is real estate investment, which is the best, and there is industrial, tourist and agricultural investment, all of which fall within the scope of real estate.

The risks of real estate investment and bank deposit in Turkey

As in the case of bank investment anywhere in the world, this investment is not a real estate investment in which there is no risk of bank bankruptcy, the first risk of bank investment is associated with bankruptcy, and sudden exchange rate fluctuations. As for the real estate investment risks, they are not limited to the tenant’s cessation of paying the monthly rent, the procrastination in paying the value of the monthly property allowance, the misunderstanding of market prices, or the purchase of a property at a price that contradicts the nature of real estate prices in the same area.


Edited by Gars Consulting Company

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