The first thing that comes to mind when talking about commercial real estate is probably offices. The need for functional offices has also increased because the business world has turned to a more promotional focus. Investors, who are aware of this, have turned to lesser-known commercial real estate investments such as shops, offices, and similar real estate investments. The perception of commercial real estate all over the world is about making the investment and managing it functionally right away. In a way, there is a perception that people who will use it as a workplace make purchases. However, commercial real estate can be rented like an apartment, and it is a very profitable investment choice. In the case of commercials, more attention should be paid to the amortization period. Because everyone deserves the best return on their investment.
Depreciation Period in Metropolitans
Although it is thought that payback periods will increase due to pandemic conditions, Turkey gained momentum compared to other places, as this situation is experienced everywhere. There have been changes in the amortization period, which was previously 18 years. Especially in metropolitan cities that can repair their change and progress share, the amortization periods have become even shorter. While the average in Turkey is 16 years, this situation is around 17 years in İzmir, 19 years in Istanbul, and 20 years in Ankara. Of course, conditions may differ in districts. Tourism revenues are crucial due to the city's balance of supply and demand, location differences, or location.
Recommendations for Those Who Will Invest in Commercial Real Estate
While it is a good start to calculate the amortization period based on the city, market research should be conducted on the district's surroundings. Whether there are tourism resources or the values that increase consumption can add value to the commercial property to calculate the amortization period of the shop. In doing so, evaluations based on Turkey should also be taken into account. If the borrowing period is 13 years, a property with a depreciation period of 15 years may incur a loss.
If you want to invest in the right way, you can stop by Trem Global for your commercial real estate research or contact our experts.