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Prosperity with 2024? The Path Looks Clear

Posted by Mare-mrn on 10/01/2024
Real Estate
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What to expect in 2024 in terms of investment?

Just 8 days in to the new year (2024) what to analyse is clear. The nearing local elections, and if the elections are as tense as 2019 we will at least have excitement. I mean, everyone from every political and citizenry angle. Let us see what this holds for Turkey’s visitors, ex-pats and investors.

The famous quote is the best time to buy is ‘When there is blood on the streets.’. Well there is no real blood, on the streets of Turkey, however the volatility surrounding the economy since late 2019 seems to be clearing. The new management in Ministry of Finance and Central Bank of Turkey, brought orthodox measures back.

  • Inflation seems to have settled to the 60-70% pa interval.
  • Income levels are better with the minimum wage increasing to $6.900 pa.
  • Income per capita is finally towards the 5 digits in Dollars which was reached briefly about 7 years ago.

These all mean the Turkish buyers will once again be on the bargain hunt, regardless of the type of property. And since the price levels are settling to more acceptable levels compared to the unrealistic level reached especially after the big Earthquake in February 6, 2023, there is light at the end of the tunnel for investors with larger budgets.

Recommended type of investment and strategies

Land investment is not everyone’s cup of tea. So we are not going to say you can achieve the best returns, just from land purchase. The recommendation is to add dynamism to your investment. Whatever you buy, leaving it as it stands will not really make your investment growth at the maximum rate, unless it is already an income generating asset which you have bought at a lower level than its market value.

Investment in Areas With Urban Regeneration Potential

A good example is buying a relatively old apartment in a good location with Urban Regeneration potential. Here is a very good option to consider.

The centre of Mersin is ageing. This creates outdated buildings and although renovation is a temporary update, the city needs re-development in most areas. Especially the coast of Yenisehir, from HiltonSA to the Suphi Öner Öğretmen Evi is highly recommended for investment in old units to actually buy valuable land shares. This way you will generate a decent rental return from each unit too.

We can get you multiple units, ideally in the same building or at least within the same block. This way you will generate bargaining power as you will be growing your land share.

Dynamic Land Investment

This topic is actually on of the main contents of this website, because MARE Investment’s aim is to promote Mersin as an emerging market for foreign investors. Land investment is meaningful when you give your land to a developer for a share of the units or simply building on your land so create dynamism and lucrative profits.

Here is a very good land investment option you could consider as a middle size project.

Option 1 is to make an agreement for a share of the units in the development.

  • If you make an agreement with a contractor you are likely to get 45% of the units with this land.
  • Say there are 15 units in the building, you will get 7 units plus cash for your investment.
  • In Eski Mezitli Your apartments will easily sell for 3.750.000 TL each in today’s money.
  • You will make the value of your investment about 27.000.000 TL over 12-16 months.
  • This is in today’s money and almost doubling your initial investment.

Option 2 is investing more in to your land with MARE Investment as your contractor. We give you a turnkey price and make an agreement for the entire development, marketing, sales and lettings of the project as the sole estate agent and developer.

  • You will pay 40% of the total construction cost in advance. The rest will be paid in 12 months.
  • Construction begins after licensing and we will start marketing the units immediately.
  • This way, construction progresses healthily and as a unit is sold, a lucrative cash flow is generated.
  • Total cost will be about 42.300.000 TL for the land example above.
  • When the entire building is sold you will get about 75.000.000 TL which gives you a healthy return, again over 12-16 months.

If you would like more information about investment in Turkey, particularly in Mersin, please do not hesitate to call us.

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