AVOCADO FARMING AS AN INVESTMENT
Why invest in an agricultural land?
Avocado farming’s history in Turkey
Fertile land along the Mediterranean Coast has new produce being talked about and this is only due to creativity of the local farmers. Avocados entered the Turkish market as imported fruits first. The ideas from European food businesses brought up the question, the demand is created with experiments and practices. New methods made the market lucrative for first investors. When the price has been set, local farmers sat with engineers and the first attempt’s been made about 21 years ago. Now, Avocado is by a mile the most popular way to evaluate your land, especially if you do not want to spend a lot on greenhouses. Avocado gardens need only an agricultural land with access to a road, electricity and water.
Of course, Avocado’s popularity is hıgher for long term investors. Decent returns are reached in about 5 years from planting your trees, and maximum return is after the 9th year. If you have funds you can invest in land with minimal cost to start. This type of investment could be ideal for you.
Avocado does not need a lot of water. Maintenance other than the first 3-4 years is less costly compared to other produces in the region. Fruit production starts when the trees get stronger branches, and this is usually after 3 years from the start. Returns from #Avocado increase gradually especially after year 7. The trees will reach approximately 9 metres high and after this your returns grow rapidly.
Please see the graph attached paying attention to the silver line which is the income from one tree in Turkish Liras.
Agricultural Land Investment strategy
On 1.000 sqm of land there can be about 40 Avocado trees. This is considering the size the trees will eventually grow to. As seen above, the income from just one tree is about 4.500 TL after 10 years. For a decent income to live on, even 40 trees on 1.000 sqm is sufficient.
In #Anamur, #Bozyazi and #Aydincik agricultural land is sold for about 800-1.500 TL per sqm in the centre and in nearby villages. In outer villages prices are around 200-500 TL per sqm. Just a simple calculation will let us know the return from 1.000 sqm land investment in Anamur. Let us say we bought the land in a nearby village for 1.000.000 TL. Your capital investment will return in 7 years. That is 14.2% gross return. After the 10th year income from your land will reach about 500.000-750.000 TL per annum (in 2024’s per kg prices). Please note in 10 years TL income will be variable due to inflation and demand.
For example, Anamur is a growing city. If you buy close to the centre where there is an urban growth potential, you will have a buildable land after the recommended term. This will make your overall gain even higher.
Working with Mare Investment
We can talk about ideas and maximising income from your investment in an agricultural land, so it is nothing like buying apartments!
Our management services will cost you 10% of the gross annual income. For the first few years cost is from your pocket, then it is paid by your land. Management provides you with ideas in order to maximise returns, security of your produce and monthly reports of performance.
Please call or message +90 530 020 5369 for a friendly chat and professional advice on agricultural investment.
