URBAN TRANSFORMATION AND FOREIGN INVESTMENTS

URBAN TRANSFORMATION AND FOREIGN INVESTMENTS

As the foreign investment rules in Turkey is amazingly developed, we want to encourage our clients to invest in potential businesses, that they can proceed in Turkey.

Turkey with its young population is providing so many potentials to the investors to proceed their businesses or starting new businesses.

On the other hand, due to the urban transformation rules, there are so many Turkish investors, who are entering in the construction business.

On the high potentials and expensive areas, such as the areas around Bagdat Avenue in Istanbul, the Turkish construction companies.

which are cooperating also with the subcontractors, are willing to proceed with reconstruction projects. (It is also very important to settle the contracts with the subcontractors.) The companies are making re-constructions contracts with the landowners of the old building. Depending on the location the landowners receive from 50-80% of the new construction. In this way, if the construction company can profit much more than other business sectors. However, it is very important to know where to start a reconstruction project.

Therefore it is very important to check the architectural permits,  construction costs and the potential sale prices of the flats that the investor receives, and for sure the contracts with the landowners.

We can give you an example with average prices (of course it is just an example with average prices): to build a luxury building is between 400USD/m2. And on 1000m2 land, the construction permit in Bagdat Avenue area is around  2,07*surface of the land. That means 2070m2 of the building can be rebuilt on that field. (2.070*400 = 828.000USD) In average the constructors hold 30% of the building and Bagdat Avenue area the minimum price per m2 is from 4.500USD  ( 621*4500USD = 2.794.500USD) That means estimated 1.966.500USD profit. So buying a real estate or establishing a firm and making constructions with subcontractors?

With our team, we fully support our clients with whole legal and economic information on urban transformation projects.