Under-construction propery in Turkey
Buying an under-construction property in Turkey means getting it at a lower cost than buying it once it’s finished. Depending on the project, some residential properties can increase by 20% upon delivery compared to the price while in construction, and some investment properties can increase by more than 100% upon delivery.
Buying an under- construction property in Turkey is usually attractive to investors looking for a high return on investment. Still, there are a few questions that everyone who is thinking about buying property in Turkey needs to know:
- How do I ensure that the property will be delivered on time and meet the specifications I require?
- When I buy an under construction property in Tukey, who is the best construction company?
- What are the details of the investment property?
- How soon should I start investing in a project?
- What steps should be taken to establish a real estate project?
- What is the ideal investment strategy for buying and selling an under-construction property?
Let’s begin by answering the previous questions in detail:
- How do I ensure that the property will be delivered on time and meet the specifications I require?
When talking about small and medium business people, a real estate investment requires a relatively significant capital investment, and therefore delaying the delivery of the project beyond the specified time means losing time and money, even if the issue is confined only to delay, then can be tolerated, but what if the project is not delivered at all!
Suppose you want to prevent losing money on real estate investments. It is essential to get advice from an expert in the market before acquiring a property, especially if it is under-construction property in Turkey.
Keeping the project on schedule will be achieved through the contract you sign with the construction company during the purchase process and the extent of the fines they will have to pay if the project is delivered late.
Concerning the delivery of the apartment within agreed-upon specifications, the specifications of the apartment and the materials must be detailed in the contract signed between the buyer and the real estate developer during the transaction.
The apartment is fully prepared and furnished in Turkey so that the buyer can find out about the quality of the materials used in the walls and floors, kitchen and bathroom ceramics, the temperature control system, and the electrical appliances delivered upon completion.
It should be a match between the offered apartment you saw during construction and the apartment you receive upon project completion based on the construction company’s reputation, how many projects they have completed, and how accurate their delivery is.
Keep in mind that any difference in price between an apartment and a similar one in terms of size and location is reflected in the quality of the materials.
2. When I buy an under-construction property in Turkey, who is the best construction company?
Before we talk about construction companies with a good reputation in the market, we have to realize how important it is not to look at the number of projects a construction company has undertaken, but rather the extent of commitment and accuracy with materials of high quality to evaluate the best company.
As one of Turkey’s top real estate companies, Tahincioglu Real Estate is headed up by Chairman Ozcan Tahincioglu and handles retail, office, residential, and shopping mall projects and luxury hotels.
So far, Tahincioglu has built projects covering over 2 million square meters. Nida Construction, Tahincioglu’s construction company, handles all general contracting needs. The company’s projects include the Palladium Tower, Palladium Atasehir Shopping Mall and Residence, Palladium Antakya Shopping Mall, Nidakule Kozyatagi, Nidakule Goztepe, Swissôtel Buyuk Efes, and Congress Center. It’s currently building Nidapark Başakşehir and Nidapark Seyrantepe, as well as Nidakule Atasehir and Nidakule Levent, which may get a LEED Gold rating.
You can access Tahinoglu’s projects by clicking the links below:
- To find out more.
With over 40 years of knowledge and experience, the ARTAS Group in 1977 by Suleyman Etinsaya. Group businesses include real estate, retail, and tourism.
With its ”Avrupa Konutlari’’ brand, it’s one of its leading brands. So far, the company has built and delivered 18.500 houses with Avrupa Konutlari and other joint venture brands.
In addition to shopping centers and hotels, ARTAS Group has also developed projects in the retail and tourism industries. The company has completed five shopping centers and five hotels, including independent and mixed-use projects. It has a successful performance in the areas of business administration and management. It manages hotel projects and housing and shopping mall projects within the company structure.
In addition to its investments in supporting the economy, the ARTAS Group provides subsectors with employment capacity and mobilization. Having been working for over 40 years, the Group continues to develop high-quality, peaceful places with its environment and facilities that have become the symbol of quality and trust.
You can access one of the Artas Group’s projects by clicking the links below:
One of the largest real estate development companies in Turkey is Emlak Konut. The goal of Emlak Konut is to take a future step based on consumer needs and to buy large amounts of land to continue developing its real estate portfolio continuously.
You can access Emlak Konut’s projects by clicking the links below:
Particularly in Istanbul in the past five years, 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, no matter what.
Mar Yapi is known for; its building projects with recreational facilities to increase quality and luxury standards.
Kelesoglu has been in the real estate business for over 35 years. The company’s projects are known for providing profits to investors, quality of life, and a clean and beautiful environment.
You can access one of the Kelesoglu’s projects by clicking the link below:
Karden Construction started in Istanbul in 2002 and has grown into a leading brand in the construction sector with successful projects. Initially, the company built industrial buildings but then diversified into housing projects, business centers, shopping centers, factories, schools, hospitals, industrial facilities, mass housing, villas, steel structures, power plants, and infrastructure.
The names listed here are some of the most prominent names in the construction field in Turkey, in general, and in Istanbul, in particular. There are always new companies emerging on the market that prove successful. It would be best to obtain a free consultation from our specialized team on the matter.
You can access one of the Karden Construction’s projects by clicking the link below:
3. What are the details of the investment property?
It’s possible and easy to sell it after the investment period ends.
The specifications must also be convenient for the local market, which makes up over 96% of all real estate sales and purchases in Istanbul.
The operational plan should be feasible if it already exists or if a capital increase should be considered if it is in the construction phase.
Having a strategic location that helps the investment be more feasible and makes it easier to end the deal on time.
4. How soon should I start investing in a project?
You can invest as soon as possible if you get a thorough real estate consultation detailing the history of the construction company and its commitment on the one hand, and on the other, finding out the advantages of the investment project based on the criteria we mentioned in the previous question.
The average project takes two to four years to complete, depending on the number of buildings and apartments in each, the area of the project, and the entertainment facilities, like parks, swimming pools, sports clubs, and water pools.
It’s best to invest in an under-construction property in Turkey early because they have a 25-50% return on investment. Early investment in a two-year project can mean a 100% return within two years. Even the weakest investment growth is estimated at 25%, which is at least three times higher than the highest rental income for a fully-constructed property, which is 4% or 5%.
Here is the concept of a successful investment: you buy a property early in the building process, sell it just before delivery, reap colossal profit, and then start over.
Those great ideas we’re talking about depend on the right property being selected by experts in the real estate market; otherwise, your investment plan will fail, and you’ll lose your money.
5. What steps should be taken to establish a real estate project?
I will explain from a simplified angle that helps investors understand at any stage.
- In preparation for the next stage, space is allocated, and iron barriers are erected around the location.
- This stage includes the work of digging foundations for the buildings, the number of floors each building contains, and the design of the building, such as a hospital or a car showroom. The process does not require much time.
- The external structure of the buildings is completed before finishing the cladding process, whether external or internal, as shown in the drawing below, and this stage takes about a third of the project’s completion time, depending on whether there are several towers of their quality.
- In the external cladding stage, it involves the cladding of each floor in terms of walls and insulation materials that will be used as well as the external structures of the building, whether they are glass or concrete resistant to weather factors, and this stage is about one-third of the project construction time. Building the structure is a good strategy, but it’s rarely used in Turkey:
- In the next phase, the interior finish of the apartment starts with floors, wallpaper, bathrooms, and the kitchen. Phase four takes care of the rest of the project’s construction.
- When you start putting in entertainment facilities, gardens, and swimming pools, which is also determined by the percentage of these areas in the whole house, to avoid obsolescence upon project delivery, they’re usually built after external construction is complete.
There are, of course, different stages of construction. We must keep in mind that knowing these stages precisely requires a specialist engineer, as well as the project plan that is required to be implemented, and finally the construction company that establishes the project, since an investor may feel comfortable with an old company even during the initial stages of construction. As described in the opening paragraph, construction is also possible for construction to be suspended as we reach advanced stages of the construction. Thus, we always advise against being tempted by attractive prices in construction projects before getting advice from a well-established company.
6. What is the ideal investment strategy for buying and selling an under-construction property in Turkey?
Purchase of the under-construction property in Turkey is in the early stages of establishing the project, keeping the property until the end of the construction phase, then selling the property and moving to a new property.
Our plan is based on the assumption that the property’s price under construction will increase much more than any rental return for a ready-made property and that we will, instead, receive significant annual returns before the project is complete.
Investors with a ten-year long-term plan can complete buying and selling every two to three years and move to the following process. So by the end of ten years, contractors who invest in projects under-construction property in Turkey will get a return over three times or even five times better than an investor who buys a ready property.