How do you calculate the return on investment in Turkey

It is important to know the return on investment in Turkey and to know the profits and losses and the factors that affect that. Read on

In this blog, we will give you a comprehensive guide on how to calculate the return on investment in Turkey and we will review the main factors that must be considered and the criteria that must be taken into account when calculating the return on investment, and you will learn more about methods for calculating rental income and resale profitability, and how to estimate the year-on-year increase in property value.

Advantages of investing in Turkey

1. Turkey is a bridge between European and Asian continents, which makes it a strategic investment destination.

2. Turkey has a strong and diversified economy that enjoys steady growth.

3. Turkey has a huge internal market of more than 80 million people, which provides great opportunities for companies and businessmen.

4. It enjoys vital economic sectors such as tourism, industry, agriculture, construction, technology, energy, and transportation.

5. It invests heavily in the development of infrastructure, which contributes to the improvement of communications, transportation and energy.

6. Measures have been taken to facilitate the investment process and provide incentives for foreign investors.

7. The Turkish government provides support and assistance to investors through programs and initiatives that encourage investment.

8. Turkey possesses a skilled and educated workforce, which makes it an attractive place for companies with a need for high skills.

9. Turkey is developing rapidly in the field of information and communication technology, which creates opportunities for investment in this emerging sector.

10. It has an advanced and developed banking system that supports financial business and investment.

11. Turkey occupies an advanced position in the lists of international business freedom, which facilitates the process of investment and trade.

12. Turkey has signed free trade agreements with many countries, giving companies export opportunities and access to new markets.

13. It protects intellectual property rights and promotes innovation and invention.

14. It is a popular tourist destination, providing investment opportunities in hotels, hospitality and cultural tourism.

15. It houses a large number of prestigious institutes and universities that provide higher education and research opportunities.

16. Turkey is interested in developing renewable energy, and provides investment opportunities in the fields of solar and wind energy.

17. It sets strict environmental laws to preserve the environment and promote sustainability.

18. It witnesses great activity in the real estate market, which provides opportunities for investment in commercial and residential real estate.

19. It has a wide and developed commercial network, which gives access to global markets.

20. It is one of the largest agricultural producers in the region, providing investment opportunities in the agricultural and food sector.

21. Turkey has a developed transportation system that connects different continents, which facilitates transportation and distribution.

22. It adopts flexible practical laws that facilitate employment and encourage innovation and growth.

23. Turkey has charming landscapes such as beaches, mountains and lakes, which attract tourists from all over the world.

24. It enjoys the confidence of foreign and local investors as a result of the positive economic and political developments.

25. Turkey is a destination for medical tourism and provides high quality healthcare services.

26. Provides ease of obtaining entry visas for investors and workers.

27. The Turkish lira is its official currency, but foreign currencies can be used commonly.

28. It maintains relative political stability and security strength, which enhances confidence for investment.

29. Turkey has a rich cultural heritage that attracts tourists and promotes investment opportunities in tourism, arts and culture.

30. Turkey is part of the Middle East and the Balkans, which provides opportunities for trade and investment in these regions.

A glimpse of how to calculate the return on investment in Turkey

It differs from the methods of calculating returns for other types of investments and the capital increase is calculated on an annual basis, and this increase depends on choosing the property well and the investor should choose a strategic and prosperous location that guarantees an increase in the value of the property on an annual basis.

The investor can choose a property in a new and developed area, where there will be a capital increase within a short period, and real estate investments are based on two basic principles, which are the annual return from rent and the profit return from resale.

For example, if a property is invested that provides a guaranteed 6% return on investment for a period of 5 years, the investor will receive 30% of the value of the property.

If the area in which the property is located is promising and developed, meaning that real estate prices are likely to rise well, then upon resale the investor can get 50-70% of the original investment value.

This value may reach 100% of the original real estate investment value if the real estate area in which the property was purchased is promising, such as Basin Express, Avcilar, and Basaksehir in Istanbul.

Is it important to calculate the return on investment in Turkey?

Certainly, calculating the return on real estate investment is very important, and it has great importance for several reasons, helping to determine the profitability of the investment and the ability of the property to generate profits and the investment return calculation provides accurate information about the amounts of money that have been achieved or lost by the investment, and whether the return expectations have been achieved or not.

The return on investment calculation helps to compare and evaluate different investment opportunities and the investor can use the investment return calculation to compare the returns of different properties and analyze the financial figures associated with them, which enables him to make smarter investment decisions in the future.

The return on investment calculation can be used to track the performance of an investment over time and calculating the return on investment allows the investor to monitor the performance of the property and see if it achieves the expected return in the long term or not and this helps the investor to evaluate the success of his strategy and take the necessary action if necessary.

Common questions

What is the definition of real estate investment return?

The return on real estate investment is the financial return that is achieved from investing in real estate, and it expresses the expected financial profits in percentage.

What are the factors to consider when calculating the return on real estate investment?

Factors favorable to the property must be considered such as geographical location, economic and market prospects, expected return from rental and resale, investment and maintenance costs.

How is the return on real estate investment calculated in Turkey?

The return on real estate investment in Turkey is calculated by estimating the profit return from rent and the profit return from resale, in addition to estimating the increase in the value of the property on an annual basis.

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