Investing in real estate is a popular choice for many people in Turkey, and it can be a great way to build long-term wealth. However, when it comes to choosing between residential and commercial properties, there are a few key differences that investors need to consider. In this blog, we will explore the pros and cons of buying residential vs commercial property in Turkey.
Pros of buying residential property in Turkey:
- Stability, as there is always demand for housing.
- Lower risk of vacancy, as long as the property is in a desirable location.
- More affordable, making it a great choice for first-time investors or those on a tighter budget.
- Easier to manage, with fewer tenants and longer lease periods.
Cons of buying residential property in Turkey:
- Lower returns, with lower rental income and less potential for appreciation.
- Limited tax benefits compared to commercial properties.
Pros of buying commercial property in Turkey:
- Higher returns, with potentially higher rental income and appreciation.
- Greater tax benefits, including more deductions for expenses.
- Potential for diversification, as there are different types of commercial properties to invest in.
Cons of buying commercial property in Turkey:
- More expensive than residential properties, requiring a larger initial investment.
- More management-intensive, as there may be multiple tenants and lease agreements to oversee.
- Higher risk, as the success of the investment is often tied to the success of the businesses leasing the property.