As the foreign investment rules in Turkey are amazingly developed, we want to encourage our clients to invest in potential businesses, that they can proceed in Turkey.
Turkey with its young population is providing so many potentials to the investors to proceed with their businesses or starting new businesses.
On the other hand, due to the urban transformation rules, there are so many Turkish investors, who are entering the construction business.
On the high potentials and expensive areas, such as the areas around Bagdat Avenue in Istanbul, the Turkish construction companies.
which are cooperating also with the subcontractors, are willing to proceed with reconstruction projects. (It is also very important to settle the contracts with the subcontractors.) The companies are making re-constructions contracts with the landowners of the old building. Depending on the location the landowners receive from 50-80% of the new construction. In this way, if the construction company can profit much more than other business sectors. However, it is very important to know where to start a reconstruction project.
We can give you an example with average prices (of course it is just an example with average prices): to build a luxury building is between 400USD/m2. And on 1000m2 land, the construction permit in Bagdat Avenue area is around 2,07*surface of the land. That means 2070m2 of the building can be rebuilt on that field. (2.070*400 = 828.000USD) In average the constructors hold 30% of the building and Bagdat Avenue area the minimum price per m2 is from 4.500USD ( 621*4500USD = 2.794.500USD) That means estimated 1.966.500USD profit. So buying a real estate or establishing a firm and making constructions with subcontractors?
Here we can give you simply written tips, to be aware of…
First of all what we suggest to our clients, is to check the history of the place. What developments around ( like new ways, new constructions, new government facilities) occurred there if/how high the prices went up if it is a land what potentials of constructions, are the keys to understanding if the investment can be made in there.
Secondly, it is very important to check the potential developments around the real-estate. For instance, it can be a nice idea to buy a field, if there is a new airport is being built, or to buy another field on which you can build a hotel…
Thirdly, if you are planning to purchase a field, you need to check if the field has a construction permit or has the potential to obtain a construction permit in the future.
With our team, we fully support our clients with whole legal and economic information on urban transformation projects.