What is the impact of real estate funds on the Turkish real estate market?

Although real estate funds are a relatively new investment tool in Turkey, they have been able to play an important role in shaping and influencing the real estate market in recent years, given that they are an investment tool that has the characteristic of attracting large capital, with well-thought-out and clear investment objectives.

Perhaps the most important major influences of real estate funds on the Turkish real estate market are:

1. Increased liquidity in the real estate market

Real estate funds contribute significantly to increasing liquidity in the market, through the capital injected into this market, which will crystallize in the form of buying, selling and real estate construction...

The opportunity for investors to sell their shares in the fund more easily than selling the physical property has encouraged and encouraged new capital to invest more boldly in real estate funds, which casts its impact and shadows on the real estate market as a whole.

2. Investment diversification

Real estate funds also provide investors with encouraging opportunities to diversify their investments, by co-investing in a variety of properties in different regions, by investing in a single fund, with the benefit of receiving tax deductions or exemptions.

Diversification of investments is beneficial in fortifying capital and reducing investment risk, as in the case of investing in one type of real estate, for example.

3. Improving quality and standards in the real estate market

Real estate funds also contribute to improving quality and standards in the real estate market, as these funds prefer to place their investments in new real estate projects that are of high quality and have high real estate attraction specifications.

As real estate funds are interested in driving investment in their capital, they apply strict criteria for selecting the real estate projects in which they invest, which naturally contributes to the introduction of new projects with a guarantee, high construction quality, and attractive designs.

4. Increased transparency

By increasing transparency in the real estate market and publishing information about their performance and investments, real estate funds can contribute to improving the quality of projects and work standards in the real estate market, which will allow investors to make informed investment decisions based on clearer information.

5. Attracting foreign investments

Given the multiple incentives, real estate funds in Turkey have been able to attract more foreign investments to the Turkish real estate market, driven by the desire to seize fruitful opportunities, or the desire to benefit from tax reductions and exemptions, or even benefit from the Turkish citizenship law in exchange for investing in a fund of $500,000 for 3 years.

As a result, these incentives have been able to provide a new source of funding for real estate development projects, which helps boost economic growth.

6. Encouraging innovation and development

The reliance of real estate funds in their new projects to enhance the quality of projects that will attract investors and buyers has created innovative, sophisticated, and unique real estate models in the real estate market. This has also helped improve the real estate offerings available to consumers and attract more investors to the market, both in the form of customers and investors in real estate funds and real estate in general.

7. Stimulating economic growth

Real estate funds also contribute to stimulating economic growth in Turkey, especially with the large deposits of foreign investors attracted to this market, and through the creation of new job opportunities and increased investments in general, which helps to improve the standard of living of the beneficiaries of these sectors.

8. Supporting financial stability

REITs operate based on providing a safe and reliable investment environment, which leads to supporting financial stability and improving the stability of the Turkish economy through these contributions.

On the other hand, Turkey is working hard to maintain its economic reputation globally and raise its credit rating, which will contribute to encouraging investors and foreign capital to the country.

To invest in real estate funds in Turkey, consult Oragon's experts

Oragon has been able to present an ambitious investment model through its establishment and successful management of real estate investment funds and other investment funds, with Oragon's long and deep-rooted experience in dealing with investment risks, fund management, and deal-hunting, thanks to its team's resume that testifies to its ability, experience, and expertise.

To discover the details of our work, our investment plans, our ambitions for the success of our business and our funds, our investment risk management, our profit distribution program, and our entry or exit program, we invite you to communicate directly with our team, where you will find the right answer and advice.

Edited by Oragon Company ©