Investing in tourism-related real estate in Turkey is a popular option that is highly profitable for investors due to the country’s robust infrastructure for raw materials and the availability of a diverse selection of investment opportunities. Let’s explore what this is all about.
What is Tourism Real Estate?
Real estate is a vital aspect of the tourism sector, as well as many other economic sectors. Tourism activities are generally related to geographic locations, and real estate corporations often create and maintain the physical area.
There are hotels that function as long-term accommodations and offices for traveling business workers, and there are leisure establishments that offer residential and recreational amenities to a global population.
Types of Tourism Real Estate
The following are the most common types of tourist real estate in Turkey:
- Tourist Accommodation
Tourist accommodation establishments include hotels, hostels, resort villas, aparthotels, serviced apartments, tour cruises, campsites, and other tourist accommodations.
- Leisure Property Developments
Shopping centers and theme parks are examples of integrated complexes that feature leisure components combined with residential components.
The Benefits of Investing in Turkish Tourism Real Estate
There are a number of factors that have made Turkey a popular destination for investors who want to contribute to the country’s growth and the real estate market as well as in tourist ventures.
Investing in tourism-related developments in Turkey comes with significant advantages for both the investors and the country as a whole, and that includes the following:
- Modernization of the Infrastructure
When a destination is well-known for being a tourist attraction, the infrastructure and amenities are regularly improved and developed. Among the facilities that will be prioritized and developed within the location is the road or highway leading to the destination, public transit in the surrounding region, hotels, restaurants, food and beverage outlets, retail malls, and leisure facilities.
As a result, if you own real estate properties in such a region in Turkey, the value of your property will increase because there will be a large number of facilities and amenities that your renters or future purchasers will find valuable.
- An Increase in Value Due to the Location’s Desirability
Real estate in tourist destinations tends to do better since so many people are aware of the area’s presence as a result of its appeal. Istanbul and Antalya are examples of large cities with global business and tourism markets. For many, these locations have the potential to become sought-after destinations due to the abundance of high-end developments that can be found there. Properties in these areas will be in high demand, which will lead to an increase in their value over time.
- The Government’s Encouragement of Foreign Investment In Turkey
These measures have been taken by the Turkish government to encourage foreign investment and have given a significant number of investment possibilities, such as:
- Foreigners have eligibility to own tourism real estate products in Turkey.
- Exempting foreign investors from paying value-added taxes on purchases made in commercial and tourism establishments, results in the importation of foreign currencies into Turkey.
- Reduced-rate land acquisition for tourism investments with the goal of building necessary tourist amenities like hotels.
- Reduce the VAT on operational supplies imported from outside from 18% to 8% for investors.
- Lowering the VAT belonging to commercial establishments from 18% to 8%.
- A reduction from 4% to 3% in the value of property taxes.