What is the future of real estate investment trusts in Turkey?

In this article, the investment experts at Oragon tell us about the future of real estate investment funds in Turkey, whether in terms of potential returns or reliance on technology and digitization, along with other matters that we explain in detail in these lines.

What is the future of real estate investment funds in Türkiye?

Real estate funds in Türkiye attract new investors to them; Driven by its multiple features, which have made it a stimulating investment tool for those with savings and those looking for ways to increase their capital without any effort on their part, it does not require depositors to have real estate experience in order to be partners in these participatory portfolios and benefit from the bounties of their growth.

With the upward trend of interest in the Turkish real estate sector, real estate investment funds in Turkey have recorded great growth and interest in recent years, especially with the investment advantages that these funds have obtained, the most important of which are:

  • Distinctive returns with the growth of the Turkish real estate market

The real estate market in Turkey is characterized by its growth opportunities and encouraging profits, which made it a polarizing destination at various stages among global real estate markets, thanks to its stable and strong long-term growth.

This growth is expected to continue in the future, driven by several factors, the most important of which are: Increasing population, infrastructure development and urbanization, and the demand for real estate by foreign investors, thus contributing to good returns for investors in REITs.

  • Increased international interest

Turkey's real estate is receiving increasing interest from international investors, thanks to its globally advantageous location, strong and diversified economy, and programs to obtain Turkish citizenship in exchange for real estate ownership.

This growing interest is expected to lead to continued foreign demand for real estate in Turkey, which will benefit real estate investment funds operating in this sector as well.

  • Technology and digitalization

The use of technology has become increasingly effective in the real estate industry and in the field of real estate fund management, which has resulted in increased work efficiency and greater information transparency for investors.

Then, electronic real estate trading platforms and modern technologies played a prominent role in facilitating the process of investing in real estate funds, which allow investors great ease in trading, and it is expected that technology will continue to play an important role in developing real estate investment funds and making them more attractive to investors.

  • Supportive government legislation

The Turkish government was keen to provide more legislation that would push investors towards real estate funds, which took the form of tax reductions or exemptions, which means achieving better financial returns than regular real estate investment, such as, for example, exemption from tax withholding according to the presidential decree published in Official Gazette No. 32533 dated May 1, 2024, which established a 0% tax rate on income obtained from shares of venture capital investment funds and shares participating in real estate investment funds, which are held for more than two years.

This is in addition to the attractive legislation for foreign investors in this sector, through the possibility of applying for Turkish citizenship by investing $500,000 for 3 years in one of the investment funds.

  • Diversification in real estate portfolios

Investment experts agree that diversifying the investment portfolio provides investors with a dual advantage, which is increasing the probability of profit while reducing the probability of loss. Distributing capital among a number of real estate assets will give this investment an additional safety factor, ensuring the preservation of capital against crises that may occur to your investment in Single origin.

Real estate funds are also managed by an expert team in investment requirements, risks, and how to benefit from its opportunities. Therefore, we find that real estate funds are keen to diversify their assets within various real estate types, such as residential, commercial, industrial, and unbuilt real estate, and within the branches of each of these types.

Shape the future of your real estate fund investment with Oragon

With Oragon and its extensive experience in the field of real estate funds, we make the dream a reality and bring our clients closer to their investment goals with complete safety and credibility.

Thanks to our expert and experienced fund management team in the real estate investment sector, our funds have been able to take steady steps towards their goals, adhering to the rules of safe investment while managing risks wisely, supported by complete transparency in fund management, through the provision of periodic financial reports and clear investment strategies, with the aim of strengthening trust between us. And among our investor partners, as we strive to seize investment opportunities that generate more profits for our real estate portfolios.

To learn more about our services in the field of establishing investment funds and fund management, or to learn about our investment activities, including our work plans, and to get to know our work team; We invite you to visit our website or our company headquarters, or communicate directly with us through our various contacts, where you will find answers to all your inquiries, with free consultation on everything related to investing in investment and real estate funds in Turkey.

Edited by Oragon Company ©

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