Real estate investment in Istanbul or opening a company?

If you are thinking about investing in Istanbul, you will find yourself facing two main options: real estate investment or opening a company, so we will give you a comprehensive overview of the opportunities and challenges related to these two options and we'll explore how to exploit Istanbul as an ideal city for real estate investment, as well as what it takes to open and run a successful business in this dynamic market.

Advantages of re

al estate investment in Istanbul

1. Istanbul is located at the intersection of the continents of Europe and Asia, making it a vital meeting point for trade and economics.
2. Turkey has a developing economy, and Istanbul is the main driver of this growth.
3. Istanbul is experiencing sustained population growth, which increases the demand for real estate.
4. You can find a variety of properties including residential apartments, villas and commercial projects.
5. Istanbul uses modern technologies in developing real estate projects and provides advanced infrastructure.
6. The possibility of renting properties easily and increasing rents over time.
7. Investing in real estate can qualify you for residency in Turkey.
8. Turkey opens its doors to foreign investors thanks to favorable real estate legislation.
9. Turkey has a skilled and educated workforce.
10. Istanbul offers a variety of social and cultural events.
11. The city includes many famous tourist attractions such as Sultanahmet and the Bosphorus Bridge.
12. Istanbul is witnessing great activity in the real estate market with opportunities for the property value to rise over time.
13. An opportunity to obtain Turkish citizenship and a Turkish passport by purchasing a property in Istanbul worth 400 thousand US dollars

Advantages of opening a company in Istanbul

1. Istanbul is located in the middle of trade points between the European and Asian continents, making it a strategic location for business and trade.
2. It has a diverse and strong economy, and Istanbul plays a major role in this economic prosperity.
3. You can choose from a variety of sectors to open your company, including industry, technology, and services.
4. Istanbul is considered a gateway to accessing regional markets in the Middle East and North Africa.
5. Turkey provides favorable trade and tax legislation for business and investment.
6. The city is equipped with modern infrastructure and advanced technologies that support business.
7. Istanbul hosts a variety of cultures and languages, facilitating communication and orientation towards multiple markets.

Disadvantages of real estate investment in Istanbul

1. Real estate in Istanbul may experience significant price fluctuations, which can make it difficult to predict short-term investment performance.
2. Turkey sometimes experiences inflation and economic instability, which can negatively affect the value of the currency and purchasing power.
3. You may face legal and regulatory complexities regarding real estate investment in Turkey, including property and tax laws.
4. You must take into account maintenance, management and local tax costs when purchasing and investing in real estate.
5. Since Istanbul is a popular investment location, there is intense competition among investors for good properties, which may raise prices.
6. Fluctuations in the value of the Turkish lira may affect the real value of real estate investments for foreign investors.
7. Some areas in Istanbul experience high congestion and traffic congestion, which can affect the attractiveness of some real estate areas.
8. Unexpected changes in local regulations and laws can affect your real estate investments.

Disadvantages of opening a company in Istanbul

1. Company formation procedures can be complex and time-consuming due to possible bureaucracy in government procedures.
2. If you are not familiar with the Turkish language, you may have difficulty communicating with government and legal authorities and local clients.
3. Turkey's tax laws and regulations change regularly, and this can affect the costs and procedures of your company.
4. You may need to adapt to local laws, customs and traditions and come to terms with the local community.
5. Istanbul is considered one of the most expensive cities in Turkey in terms of the cost of commercial real estate.
6. You may need to be open to strict financial terms and deal with local banks to finance your business.

Real estate investment in Istanbul or opening a company?

The decision to invest between real estate and open a company in Istanbul depends on your personal and financial goals and the extent of preparation and knowledge you have with each of these two options and here are some points to consider:

Real estate investment in Istanbul:

1. If you are looking for a safe investment of capital and sustainable investment returns in the long term, real estate investing can be a good option, as Istanbul is witnessing an increase in demand for real estate and provides good opportunities to increase the value of the property over time.
2. You can generate income from rental properties, whether they are apartments or commercial projects, which can be an additional source of income.
3. Real estate allows you to diversify your portfolio and reduce risks if you distribute your investments across several properties in different areas.

Opening a company in Istanbul:

1. If you have a business idea and a desire to develop and grow it, opening a company in Istanbul can be the most suitable option and the city offers good infrastructure and diverse markets to support various types of businesses.
2. Opening a business can have a positive impact on the local economy and community by creating jobs and stimulating economic growth.
3. If you want to control your business and make decisions independently, opening a company gives you that freedom.

In conclusion, we must understand that the decision to invest in Istanbul, whether through real estate investment or opening a company, depends greatly on the investor's personal goals and vision, as Istanbul offers multiple and diverse business and investment opportunities, and both real estate and business have their own benefits.

If you are looking for stability and sustainable financial returns with little risk, real estate may be the perfect choice and on the other hand, if you are passionate about developing a business idea and achieving commercial success, opening a company can be an exciting option.