Record levels of housing prices and difficulties in accessing credit are directing investors to alternative real estate sources. Recently, land and field investments have been drawing particular attention.
Erhan Yılan, Founder of Varlık Gayrimenkul, evaluated this change and said, “Now, it is not only housing and shopping that people are buying, but also land and field investments with high potential for future value increase are seriously investigated. Especially those located on the peripheries of big cities and development axes are in high demand.”
Investors' Route Changed
The 80 percent annual increase in housing prices across Turkey and the increase in loan interest rates are offering alternative solutions to real estate investors. Especially the long-term development lands and fields in big cities such as Istanbul, Ankara and Izmir stand out with both their potential for value increase and lower investment costs.
Erhan Yılan stated that land and field investments have become an important alternative not only for individual companies but also for corporate companies. Yılan said, “Land investment is currently one of the safest and most profitable investment tools for medium and long-term investors. However, regional selection and zoning status are being analyzed very well. It will make a serious profit in the coming years, especially in the region where infrastructure investments and transportation projects are located.”
Warning to Investors: 'Be Careful with Parcel-by-Parcel Sales'
Yılan, who aims to mobilize opportunists due to the increasing demand recently, made important warnings about the advertisement:
“Parcel sales should not be trusted. The title deed is recorded, the zoning status and the planning of the local municipality are definitely checked. Unconscious investments may lead to changes in value or legal processes in the future.”
Volatility Expected in the Last Quarter of the Year
Erhan Yılan, who conveyed that especially towards the end of the year, investment currencies such as foreign exchange and gold increased the demand for commercial real estate, said, “Citizens want to direct their savings to safe havens that will not lose value and will gain value. Land and field investments will be even more prominent in the future in this sense.”
