Diversification of investment portfolios and their yields have recently led mutual investments and pension funds to develop a trend of investing in commercial real estates, experts have said. Speaking to Anadolu Agency (AA), Cushman & Wakefield Managing Partner Tuğra Gönden said that high foreign currency-denominated yields and the risk-yield balance of commercial real estate have influenced the increasing investment appetite in real estate.
He said that qualified commercial real estate was not as volatile as securities, adding that the yields were relatively balanced. He also noted that the increasing investment appetite in the commercial real estate sector was stimulated by guarantor deeds. Office buildings, shopping malls and logistic operation centers make an investment with a few hundred dollars for only one estate possible. Therefore, large corporate investors find it reasonable to invest in commercial real estate, Gönden noted. He also highlighted that those investors who aim to diversify their investment portfolios heavily composed of securities are appealed by commercial estates.
Investments in commercial real estate through real estate investment funds generate 6 to 7 percent yield denominated in foreign currency annually, Gönden said. He stressed that the increase in qualified and corporate investors with real estate investment funds will lead to the emergence of a more analytically devised investment process. Meanwhile, total real estate investments made by foreigners in Turkey amounted to $841 million in 2016. The market value of foreign capital in real estate investment funds was recorded at $7 billion in 2016 and $2.8 billion in the first half of the year, according to the Central Bank of the Republic of Turkey (CBRT).