What is Real Estate?

Real estate covers land and permanent add-ons on the land such as water resources, trees, minerals, buildings, houses, fences, bridges, etc., which were built by human hands and/or are located on the land that exists in nature itself. Although real estate is one of the assets with financial value, the fact that it is separated from other financial assets comes from the fact that it is immovable and connected to the land.

The term "estate" was first recorded in the 1660s, hence, it can be found its etymological roots in early modern English.

According to etymonline the word "real" is actually existing, having physical existence (not imaginary);" mid-15c., "relating to things" (especially property), from Old French reel "real, actual," from Late Latin realis "actual," in Medieval Latin "belonging to the thing itself," from Latin res "property, goods, matter, thing, and affair,".

There are a large number of types of real estate. Real estate can be both natural and man-made, including water, minerals, trees, houses, fences, buildings, and bridges. Real estates that have personal property show the characteristic of being connected to the land. Goods such as boats, cars, furniture, jewelry, motorcycles, and agricultural equipment are more different from personal property, as they are not permanently attached to the land.

The most used real estate types are listed below:

• Residential real estate
• Commercial real estate
• Industrial real estate
• Public Purposes Real Estates
• Lands

Apartments, residences, and mansions located in rural, suburban, or urban places that are used for protection and housing purposes are called “housing”. It is extremely important because they meet the need for housing, which is one of the basic needs of people.

The preferred type of property for retail and commercial uses is called “commercial real estate”. By investing in commercial real estate, people can purchase and develop facilities for housing commercial tenants. In commercial real estate, buildings are rented to enterprises, and leases are received from enterprises. Commercial property types are divided into 4 groups within themselves. These are; office, retail, multi-family, and industrial. Trade is carried out on the commercial real estate. Shopping centers and parking lots are also counted as commercial real estate.

Industrial real estate, on the other hand, is referred to as the place where the production of products sold in commercial real estate is carried out. All buildings and lands containing industrial activities such as production, manufacturing, storage, assembly, research, and distribution are industrial real estate. Industrial compliance, industrial flexible warehouses, industrial light installation, industrial heavy manufacturing, industrial data centers, industrial showroom, and industrial cold storage are types of industrial real estate.

Land refers to vacant land on which no construction or improvement has been made. It is an undeveloped property and offers more flexibility when it comes to land use. For instance, agricultural real estate is called the place where agricultural products are produced. Agricultural real estate is one of the types of real estate that is both used for agricultural purposes and provides income to its owner.

Public purpose real estate covers the places used by the community as a common. Cemeteries, schools, places of worship, hospitals, golf courses, historical buildings, public lands, and historical buildings are included in the special purpose real estate class. It is not possible to buy and sell public-purpose real estate. For this reason, its valuation is also quite difficult.

According to Wikipedia, an apartment is a building with several floors and one or more flats on each floor. There are types such as low-rise buildings, multi-story buildings, mansions, and residences.

Semi-detached houses refer to detached houses that have a common garden with other houses or are adjacent to other buildings.

Detached houses are a blessing for those who do not want to be trapped in the small rooms of the apartments. These houses are much more advantageous than an apartment. The spaciousness of the detached house; although spacious, it cannot afford an apartment.

Detached houses are called houses that do not touch the surrounding houses and usually have their own garden. Detached houses, which are not connected to another building in terms of use, are also reserved for a certain person or persons in terms of use.

Single-family dwelling means the owner, directly or through the organization, which has an undivided share in the estate, including the basic properties owned by nonprofit cooperative housing, a family, or that is designed that way by a unit means a structure that is designed for residential use.

A multi-family dwelling is any residential property that holds more than one residential unit. A duplex with many dwellings, townhouses, or apartment complexes is a good example of a multifamily house. If a property owner chooses to live in one of their multi-family units, it is considered a property used by the owner.

Portable buildings can be used for long-term, temporary or permanent facilities such as construction camps, schools and classrooms, civilian and military housing, and industrial facilities. A portable structure is a prefabricated structure consisting of repeated sections called modules. Modularity involves the construction of sections away from the construction site, and then their delivery to the desired area.

A mobile house is the name given to houses that have been prepared with different equipment compared to a normal building, have a smaller square meter, and can be moved at any time. They do not stay fixed in one place, they are designed accordingly while being installed, and the owners of the house can transport their house wherever they want with a freight vehicle whenever they want.

A townhouse is a multi-storey apartment complex consisting of two or three floors with common side walls. These houses are usually designed in the same architectural style. Each building is separate from the one in which it is located and it is intended for a family to live in it. It has a separate entrance, a small plot, and a garage.

Twin houses are a type of housing that is formed in such a way that there is a repetition or often symmetry of the same plan type on both sides of a common wall. Unlike a detached house, it allows for more efficient use of small plots.

A penthouse is an apartment or unit located on the top floor of an apartment building, condominium, or hotel. It often differs from other apartments by its luxurious features. The term actually refers to a separate small 'house' built on the roof of an apartment building.

The hotel is a facility that provides accommodation and catering services to passengers and tourists for a certain fee.

Shopping centers, for the sale of various products and brands in large and medium-sized cities in common, usually within a company operate as large retail stores that are sometimes Cooperative, Market Complexes.

A restaurant is a place where food and drinks are prepared and served to customers for a fee. A cafe is usually a small business where customers are served food and drinks. It usually has a restricted menu.

An office unit is used to express a unit such as a workplace, apartment, office, place of purchase, or sale.

A real estate agent is the name given to the institutions that carry out transactions such as buying, selling, and renting villas, houses, land, and similar properties within the framework of certain rules. It serves potential customers or new customers by creating its own portfolio. The real estate sector, which is one of the most important investment policies of Turkey, maintains its place on the agenda with the latest developments. Europe, the Middle East, and Central Asia with a population of 81 million, and its strategic location at the crossroads of Turkey, together with strong production growth in the construction industry offers great opportunities for real estate developers and investors, commercial and industrial.

Investing in real estate is one of the most preferred investment tools for people who want to evaluate their savings. The most correct form of investment in real estate investment will be for a person to analyze all his savings in the best way and turn to investment in accordance with these standards. If a person is living on rent, buying a house, or owning an apartment in housing projects with a high rental yield comes across as a correct investment argument. In addition to these, it is a very accurate decision for a person whose field of business is agriculture to evaluate his savings on agricultural land. Investing in real estate in Turkey is much preferable in the real estate sector in the world.

Yes. By investing in real estate in Turkey, Turkish citizenship can be obtained. The conditions of Turkish citizenship with real estate investment are listed below:

• Purchasing a Property Worth at Least $400,000
• A Capital Investment Worth at Least $500,000
• Create at Least 50 Employment or Start a Firm with a Capital of $500,000
• $500,000 or Equivalent Deposit in a Turkish Bank Account
• Buy the Internally Held Public Debt of At Least Worth $500,000
• Real Estate Investment Fund Participation Share or Capital Investment Fund Participation Share.

The advantages of real estate and its investors have the opportunity to earn money in many different ways. A real estate investor can invest for long-term or short-term investment purposes. For any investor, the goal of investing is to get a good profit that you can save or reinvest. In general, investing in real estate is a good investment due to the fact that it provides its investor with a regular cash flow. In addition, the real estate investor can also find ways to increase rental income and get a higher return on investment. Istanbul Property Management can give the best advice for the best profit from the investment in Turkey’s real estate market.

The disadvantages of real estate are also essential. The real estate market is known for its fluctuations due to constantly changing economic conditions. Therefore, there is no guarantee of making a profit when you decide to sell an investment property. Experts agree that location is the most important factor to consider when buying an investment property. Several ways investing in a bad place can lead to a failed real estate investment. The next risk associated with real estate investing is the possibility of generating negative cash flow instead of a positive one. Buying an investment property does not automatically guarantee 100% occupancy and quick profit. In real estate investment, leaving the property empty is a very important risk because it may create negative cash flow.

Prices in the real estate market have risen quite rapidly in recent years due to global cost increases experienced after the pandemic and migrations from neighboring countries. This situation has also made it difficult for citizens to reach the real estate they want.

“We will observe a globally synchronized decline in the housing market in 2023 and 2024,” says Hideaki Hirata, one of the IMF experts. Of course, one important issue is the repercussions of interest rate hikes. Rob Subbaraman, Head of Global Sunday Research at Nomura Holding, points out this problem and finds that “the increase in interest rates may be shocking at a time when the real wages of young families who have borrowed money are falling”. Bubble-forming real estate markets such as Australia and Canada are already experiencing rapid price declines. Experts suggest that the worldwide decline has only just begun. Paid Sundays Increase loan repayments discourage buyers from entering the housing market, which in turn leads to suppressing property sales. On the other hand, the share of variable interest loans is too high in countries such as Canada and New Zealand. In Sweden, one of the hottest Sundays in Europe, house prices have fallen by about 8 percent since the spring. Some estimate that this decrease could reach 15 percent.

The data in Britain also confirm this trend, price declines are gaining momentum. House values are holding steady or declining in London. According to some experts, demand in Britain will decline by 20 percent next year. It is predicted that house prices in the United States will remain stable in 2023, but declines have already begun in some regions. It is expected that a similar development will take place in Turkey. Already, there has been a decline in sales since July. The most important reason for the decline in housing sales is the decrease in demand due to rising prices.

In 2008, according to sec.gov the negative events that started in the US real estate market in the last quarter of 2008 affected the financial markets and the USA experienced a financial crisis centered on the real estate market after Lehman Brothers, one of the important investment banks, announced its bankruptcy. This crisis, which was initially effective in the financial markets of the United States, has become a global one and has left many developed and underdeveloped countries under its influence. The occurrence of the Real Estate Crisis in question can be briefly explained as follows; An American who wants to buy a house applies to financial intermediary institutions in order to pay for the house after deciding on the house he will buy. A payment plan for paying a certain tuition fee is created and real estate policies are signed.

Real estate policies signed between real estate clients and financial institutions (banks, real estate companies, and brokers) are collected in a pool by state-sponsored organizations or private Decencies. The policies collected in this pool are issued to investment banks as bonds. These bonds are called real estate-backed securities (mortgage-backed security). On this occasion, the policies issued on the real estate are securitized and their liquidity is increased. This process is called securitization. In short, the contract between the bank and the US citizen who buys a house in a town in the USA by borrowing through banks or intermediaries is sold by financial intermediary institutions to investment banks that are traded internationally by becoming financial and transferable valuable paper. Now, financial papers issued in exchange for the home of a US citizen who bought a house from a town in the USA have started to be traded on international markets. Thus, the riskiness of this American citizen was exported to the world by investment banks, and financial papers traded at several times the real value of that house changed hands on international markets.

When it comes to Turkey, where high growth rates have been observed since 2002, entered into an economic recession in 2008 and experienced negative growth of 4.7% in 2009 due to the impact of the Real Estate Crisis. Intensive financial policies have been implemented in Turkey to reduce the contraction effects of the crisis.

The publicly supported policies aimed at mitigating the effects of the Real Estate Crisis have shown their effect, and the USA and Turkey were able to achieve positive growth rates again in the 4th quarter of 2009.

Real estate is consisting of land and improvements that include buildings, fixtures, roads, structures, and service systems. Property rights can be applied to land, improvements, and possessions of minerals, plants, animals, water, etc. The industry works and the major jobs and careers are listed below:

• Real Estate Development
• Real Estate Sales and marketing
• Real Estate Brokerage
• Real Estate Property management
• Real Estate Lending

Real estate development is a type of investment that occurs as a result of completing the design and financial feasibility studies of a land plot and turning it into a project and providing the necessary financing.

It is the services that offer to meet your requests. The real estate agent maintains his existence by selling his property whether it is renting, buying, or selling.

A purchase or sale brokerage is a contract in which the broker undertakes the purchase or sale of negotiable instruments and movable assets on his own behalf and on the account of the power of attorney in exchange for a fee.

The concept of property management means that the real estate you own is managed by a real estate specialist as a proxy for you and all kinds of transactions related to real estate are performed. Specialists who will serve you in this matter for a certain fee are called property managers.

Real estate lending is a type of lending issued by banks by securing the housing you want to own. After deciding on the house you want to buy, you need to apply to the bank where you intend to get a housing loan.