Table of Contents

If you have properly studied real estate investment in Istanbul, you will immediately find that the rental return, whether for residential properties or even shops, will not exceed 8% annually, and often it is within 4% or 5%, and this means that you need 20 or 25 years to recover your capital from renting the property The ready-made that you bought (this is, of course, regardless of the inflation rates and the lack of demand for old properties compared to new ones).

The alternative solution to this is clear, but everyone is afraid of it, which is to buy a property under construction, especially in its early stages, and resell it later when the project is nearing delivery or after that. Here we are talking about an investment return that starts from 25% up to 60% annually if the project is chosen correctly and the choice The most suitable apartment in the project.

We know that the idea of buying a property under construction is a worrying idea for many investors, especially after the great changes that occur in the economies of the great countries, even due to disasters, inflation, etc…, so what if we talk about Turkey’s developing economy, which is affected by the simplest news in the world, negatively or positively?? .

Therefore, in this article, we aim to answer the following urgent questions:

1- How can I guarantee my right to complete the project under construction in which I invested?

2- What construction companies can I trust in Turkey?

3- What are the stages of establishing any real estate project and which stage is the best for investment?

4- What profits can I achieve when investing in a project under construction in real numbers?

5- When is investing in a project under construction not suitable for me?

Let’s start right away with the first question:

1- How can I guarantee my right to complete the project under construction in which I invested?

Ensuring the completion of the project first and secondly the completion of the project within the specified time and thirdly delivering the project with the agreed specifications, all these are very important points that the project in which you invest must achieve and also what are the expectations for the growth of this project and its high prices upon delivery, these expectations will be correct only at the consultant An old and in-depth real estate in the history of real estate investment in Istanbul. Let us give the following example for clarification:

This is a real picture of a project in the Jumhuriya district of Esenyurt under construction in 2014

This is the same scene after five years. We note that the real estate development in the neighborhood is very large, and most importantly, these shops, which were under construction today, have multiplied more than 3 times due to the fact that this street has become a center of attraction as it includes a gathering of Arab and foreign restaurants and cafes, and for investors. In these shops, we will say at first glance that they are lucky because many of the complexes of shops in other regions have not become so important, but in fact, if we rely on our old experience in real estate investment in Istanbul, we will find the following:

The profits of investment in the shops under construction come not upon the delivery of the project, but the investment in it must continue for an additional three years after delivery (as opposed to investing in residential apartments, which are preferred to be sold shortly before the project is completed or upon handover), and when we look back to 2014 we will immediately realize Most of the buyers in the neighboring projects are foreigners in general and Arabs in particular, and therefore it was clear to us that investing in the shops in this area is profitable, because after several years there will be shops to serve the residents of the neighborhood and thus will be distinctive shops due to the absence of a gathering of foreigners in Another nearby neighborhood, and so it seemed to us that there is a new seed for the gathering of Arab and foreign cafes and restaurants at a high level. Consequently, the rents of these shops have become high. Also, if the owners want to sell them now, they will achieve more than 300% profits in just five years.

Now someone will say, then the matter is easy. I will search for a shop under construction on a main road and buy in it, and after several years I will reap similar profits. The truth is that it is never that easy, and we will give another vivid example to illustrate this point:

In 2014, a large project in Bahcesehir, with many housing units, and it seems that the establishment of a commercial store has an irreplaceable opportunity

In 2018, the project is being built relatively slowly, but the delivery is approaching, and the profits of investors in the shops are close to reaching their portfolios, but the shock is in the next picture from 2020:

During two whole years, the project did not progress or any additional step, and until today, in the third quarter of 2021, and the project is still in the same state, and how long this delay will last, no one knows.

Could we, as experts in the real estate market, know that this project will not be completed with time?

In fact, no one could say for sure, but based on our view of the history of the construction company and the size of the large project, we can say that the risk is high when investing in this project, and therefore make sure once that you get advice from an expert before buying a property in Turkey and make sure a thousand times of You get this advice if the project is under construction.

2- What construction companies can I trust in Turkey?

The names of construction companies alone is not a sufficient criterion to predict their ability to deliver the project in a timely manner and within the agreed specifications. There are large companies that have built more than 200,000 housing units and today they have started a project since 2013 and until now are unable to deliver it and the examples are in the pictures because our words are based on The facts are plain and not a wordplay as in most real estate brokerages today.

Esenyurt region and the name of the construction company ozyurtlar

Yes, it is true that the project is huge, but the date of its promised delivery was 9 months ago and so far the completion rate of the project does not exceed 70%.

 Now, in order to talk about good construction companies in the market, we remind you of the importance of obtaining real estate advice from a professional consultant before trusting even large companies, and the previous example is the best evidence.

Toki Company

It is a government company for the construction of housing projects in Turkey. The company is based on a long-term strategy aimed at providing housing for low and middle income people through integrated partnership with the private sector. Toki is also engaged in the reconstruction of the stricken neighborhoods and the restoration of buildings of historical importance.

Here, do not expect luxury real estate or extensive recreational services, but this company is mainly dedicated to providing cheap homes with long installments to Turkish citizens in the first place, but it is a strong local construction company.

Emlak Konut Company

It is one of the largest real estate developers in Turkey, as it belongs to the Turkish Urban Development Administration and is considered the helping hand of the state. Emlak Konut was established in 1953 as a company attached to Emlak Bank. This company specializes in housing projects in Turkey with the guarantee of the Turkish government, and since the establishment of this company And its business is growing significantly, so Emlak Konut is trying to take its future steps depending on the needs of the consumer, and it seeks to fill its real estate portfolio and develop it continuously by purchasing land on a large scale.

A second strong company. The presence of its name in any project means that it will be delivered with certainty, because it is a government company with a very large financial capacity.

Ağaoğlu Company

Ağaoğlu started in the construction field in 1981 through the Akdeniz company that works in the field of construction, and continued to work hard until it became a famous group of companies in the field of construction. To this day, Ağaoğlu companies have built more than 30,000 apartments, making it one of the largest distinctive construction companies in Turkey.

Mar Yapi Company

Mar Yapı company, especially in Istanbul, during the past five years, has signed the buildings of modern architectural style and in harmony with the surrounding nature, and it always works on the philosophy of appreciating the collective spirit of the team working with development and reaching perfection in all the work it does.

Mar Yapi is known for its luxurious residential and investment projects. With its application of the modern concept in architectural design, the company builds projects with recreational facilities to increase quality and luxury standards.

Kilicoglu Company

Kilisoglu is one of the leading real estate companies in Turkey with more than 35 years of experience, which has won awards at an international level for constructing many luxury housing projects, office buildings and shopping malls.

The projects of this company are characterized by providing profit to the investor, high quality of life, and architectural designs that preserve the beauty and cleanliness of the environment.

Artash Group

Artaş Group, which was founded in 1977 by Suleiman Şişencia, has more than 40 years of knowledge and experience in the construction industry, the group operates in the real estate, retail and tourism sectors, and is one of the leading brands in the housing market with its “Europe” brand Konotlary”.

The company has produced and delivered a total of 18,500 homes with each of Europe’s Konutllary and other brands created by joint ventures.

The group has also implemented shopping malls and hotel projects in the retail and tourism sector. It has completed and opened 5 shopping malls and 5 hotel projects including mixed-use projects and independent projects.

The group, which has a successful performance in the areas of business and management, carries out business management in the hotel projects that it builds and manages housing projects and shopping centers within the company structure.

Artaş Group maintains its investments that add value to the national economy through its ability to employ and mobilize provided to the sub-sectors. The group, which has become a symbol of quality and confidence with its experience of more than 40 years and completed business, continues to create qualified, high-quality and peaceful housing for the environment and its facilities.

Karden Corporation

Karden Construction Company was established in 2002 in Istanbul and has become a well-known and leading brand in the construction sector with its successful projects. The company’s activities started with industrial buildings and then expanded to include diverse activities such as housing projects, business centers, shopping malls, factories, schools, hospitals, industrial facilities, collective housing, villas, steel structures, power plants, infrastructure and landscaping works.

Karden Construction Company aims to combine the concept of comfortable and modern living with aesthetic architecture with projects developed for the future.

Tahincioglu

Tahincioglu Real Estate is a group of companies operating as a real estate development and investment company under Tahincioglu, one of Turkey’s leading names in the real estate sector, managed by Chairman Ozkan Tahincioglu and oversees retail, office, residential and luxury shopping mall projects as well as hotel construction and development luxury.

The total construction area of the projects completed by Tahincioglu covers more than 2 million square meters so far. Among the projects that have become symbols of the company are Palladium Tower, Atasehir Palladium Shopping Center, Antakya Palladium Shopping Center, Bomonti Park and Congress Center. Tahincioglu is currently constructing Neda Park Basaksehir and Neda Park Serantepe as well as Neda Kole Levent and Neda Kole Ataşehir which are LEED Gold candidates.

If you want more information about Rotana Project in Sisli Bomonti

3- What are the stages of establishing any real estate project and which stage is the best for investment?

We will address these steps from a simplified point of view that will help the investor to understand the project at any stage, and we will not discuss the engineering stages in a specialized manner.

  • The stage of allocating an area for the project and surrounding the place with iron barriers to prepare for the next stage
  • The stage of excavation of the foundations, and this stage varies according to the number of buildings or towers that will be constructed in addition to the number of floors that each building will contain. relatively long
  • The stage of constructing the external structure of buildings or towers, and at the end of it we can see the structure of the building completed without starting the cladding processes, whether external or internal, as in the drawing below in the rear buildings.

  • The stage of external cladding includes the cladding of each floor in terms of walls and insulation materials that will be used, as well as the external structure of the building, whether it is glass or cement resistant to weather factors, as in the picture below. Building the structure, but this strategy is not often used in Turkey:

  • After that, the interior cladding phase begins and includes the interior finishing of the apartment, including floors, wallpaper, bathrooms, and the kitchen. This phase takes the remainder of the project’s construction and is often accompanied by the following phase:
  • The stage of establishing entertainment facilities, gardens and swimming pools in the residential complex, which also depends on the percentage of these areas from the total area of the project and is often established after the completion of the external construction work to avoid obsolescence upon delivery of the project.

Of course, knowing these stages accurately requires a specialized engineer and also depends on the project plan to be carried out, and most important of all is the construction company that builds the project. That we reach advanced stages of the project and construction is stopped. Therefore, we always stress the importance of not rushing and succumbing to attractive prices in projects under construction before obtaining a consultation from a company with long experience in the field.

We will continue to answer the remaining questions in a second article to avoid prolongation and do not forget to share this article with your friends who you think are interested in buying an investment property in Istanbul.