August 2024, Türkiye’de İş Dünyası

Land investment has recently become increasingly popular in our country. Polat Gülman, Chairman and CEO of Gülman Group, who listed the advantages and disadvantages in this field for investors who turn to land, which is a safer investment tool with the rise in housing prices, said, "We can examine the land under the following headings as advantages and disadvantages from other structural real estate investments, including residential, commercial and industrial;

Regarding Investment Objectives and Return Profile, land investors focus on long-term value increase and development potential. Regarding Development Process and Costs, land investments have lower purchase costs than other real estate investments since there is no construction cost. However, there may be additional factors such as zoning, infrastructure, costs related to environmental factors, and management of these processes.

In terms of liquidity and market functioning, land investments are disadvantageous. Land is recognised as a less liquid asset and sales processes may be longer.

STARTING FROM THE METAPHOR OF PLACING THE FIRST STONES IN THE JAR OF CAPITAL ACCUMULATION, WE SEE LAND INVESTMENT AS THE PRIMARY FOUNDATION OF OUR CAPITAL. LAND INVESTMENT, WHETHER INDIVIDUAL OR CORPORATE, STANDS OUT AS ONE OF THE MOST IMPORTANT BUILDING BLOCKS OF OUR FUTURE FINANCIAL SECURITY AND STABILITY.

In terms of risk and return, land investments involve high potential returns and high risk. They are long term and speculation, market conditions, and regional developments have an impact on their valuation. In summary, land investments stand out with their advantages such as low initial investment cost and high value increase potential. Their main disadvantages are that they are long-term and have intermediate income such as rent.

" THE BEST REGION FOR LAND INVESTMENT IN TURKEY...

Referring to the fact that factors such as economic fluctuations, high interest rates and financing costs negatively affect real estate investments as well as all investments, Gülman stated that land investment is less affected by this and said, "Among these, land investments are less affected compared to other structural real estate investments with the advantage of lower initial investment. In fact, for this period, we can say that land investments are making positive development in our country. Because the researches conducted so far clearly reveal that; gold and real estate are the first two investment instruments traditionally preferred by individual investors in our country. It is seen that individual investors who aim to invest for the future or for the need for shelter; housing or other structural real estate prices are high due to cost factors, such as high loan interest rates, it is seen that they turn to land with lower initial investment."

Finally, Polat Gülman mentioned the most advantageous regions for land investment in Turkey and concluded his words as follows; "Among the regions where it is attractive to invest in land in Turkey, the Thrace Region, various coastlines of Turkey and places close to Organised Industrial Zones (OIZ) stand out. These regions have high premium potential in the future and attract the attention of investors. Land is recognized as the most valuable investment instrument as it is the only asset that cannot be produced. It stands out as a safe and profitable investment in the long term. As the esteemed businessman Murat Ülker put it, "Currency is a piece of paper belonging to the central bank of a country. From this perspective, it is of great importance to set priorities correctly in the capital accumulation process."