In recent years Turkey witnessed a peak in land investments. The land sales consistently incread in the last 5 years finally reaching an all time high of 1.5 Million sales in 2021. This is a %30 increase compared to 2020 which achieved 1.18 Million sales. This number was 1.12 Million in 2018 and 1.14 Million in 2017. This is thanks to the benefits Turkey offers and opportunities for investors who are after a stable and profitable return. Because investing such serious amounts of money into land purchases are in essence a meticulous decision making process, it is necessary and useful to identify the underlying motivations for this type of investment to take place. Land investments require a great deal of effort that goes into research, calculation and profit forecasting. That is why it is necessary to signifying the advantages and key aspects of buying a land in Turkey.
Why invest in a land in Turkey?
The most significant feature of investing in land in Turkey is its’ price point. Land prices in Turkey especially are affordable and even cheap in many cases. This fact creates a stark contrast when land prices are compared with already built projects and real estate.
Investing in real estate in Turkey or land for sale in Turkey possesses a profitable return potential. This projection is in correlation with the growth of the Turkish economy in general. Also, because the demand for housing is constantly high it will be highly probable that a land with architectural status (Arsa) will increase in value in the near future.
The same conditions also apply for land with agricultural status (Tarla) as agricultural lands are substantially fertile and hold an agricultural production potential. These arable lands will also gain value by time and these are especially favored by investors who is in the food export business.
High Agricultural Production Potential
It is claimed that %30 of Turkish land is suitable for agriculture. The vastness of fertile land in Turkey offers a comfortable advantage for investors acquiring land for the purpose of agricultural production.
Vast Areas of Available Land for Sale
The available land for sale in Turkey can almost be found anywhere in the country. This creates a very important positional and strategic importance for every investor. The multitude of availability creates a ground for realizing an investment's full potential. To give an example; if an investor wants to produce agricultural products it will be necessary to find fertile land. If the investor wants to invest in heavy industries a land close to transportation and infrastructure will be favorable. Turkey offers this advantage for land investors.
Constant Development of New Infrastructure Projects
Infrastructure projects are a catalyst that increases the land prices. With such infrastructure projects, a substantial amount of public and private money is injected into the related areas. Regardless of its’ scale, the infrastructure projects increase the investment potential of that area and this translates into an increase in the value of the land within the projects’ peripheral distance.
A Ground for Your Own Property
One can resemble a land to an empty canvas. From that empty canvas, you can commission your own home or build a property for your business. This method can provide you with a better home tailored perfectly for you. Also, it can also be more cost-effective as you will not be seeking profit, unlike a construction developer.
Investing in land in Turkey is subject to government incentives. The Turkish government favours any type of production regardless of scale. If you acquire land and use it for producing goods and services you will be entitled for government incentives as well. This can help to propel your business and earn a more substantial return from your investment.
Turkish Citizenship Opportunity
Land investments that has a value of 400.000 $ or more also come with the Turkish Citizenship by Investment opportunity. This aspect of land acquisition can extremely be beneficial especially if you are going to use your land for business purposes. As you will become a Turkish Citizen, you will be subject to lower fees and taxes compared to a foreign citizen doing business in Turkey.
How can a foreigner invest in a land in Turkey?
A foreigner can buy a maximum of 30 hectares of land. This acquisition of land is also subject to additional conditions such as the land cannot be close to military bases or strategic areas etc. Similar to what the real estate in Turkey is subject to. If you have decided upon a land, the acquisition process is almost identical to that of the real estate acquisition process: Signing of the official contract and title deed at the Land Registry Office.
How can an investor benefit from/use the purchased land in Turkey?
There is no doubt that the location of the purchased land will play the biggest role in benefitting from that investment whether it is a real estate in Turkey or a land for sale in Turkey. If an investor purchased a land within a close distance to cities, certain infrastructures (bridges, mega projects, roads, public buildings etc.) it can be used as a passive investment. This is when the investor keeps the asset but does not actively manage that asset trusting in the value growth potential by time. This provides a relatively more comfortable investment option for a foreigner where one does not have to actively be on-site to run the business.
Land can also be purchased to develop construction projects to provide housing. This approach needs actively managing of your business endeavor. However, it will have high-profit margins if executed well. The purchased land can also be rented out for a profit, This is a common case, especially in agriculture production. One can simply purchase the exploitation rights of vast amounts of land which could have been costly to use if purchased. This method is also useful for lowering risks as renting will not be a conclusive investment type as an investment through purchase.
Investing in land in Turkey can be familiarized to investing in real estate in Turkey. Not only the acquisition processes of the two assets are similar but also the value defining criteria: It is important to invest in land by taking into consideration the location, use case, architectural/agricultural status, proximity to infrastructure and total area. Additionally, land is a more flexible type of investment from which you can initiate totally different kinds of businesses and use scenarios. Considering Turkey’s constantly growing economy and incentives offered for infrastructure and agriculture investments, owning land in Turkey is a future-proof investment solution.