Prices of apartments in Istanbul and the status of the Turkish economy in 2019
The price of apartments in Istanbul depends on several factors to be able to categorize correctly, and these factors are:
1. The project site (Istanbul includes 39 sectors)
2. The status of the project (ready or under construction)
3. The purpose of purchase (for investment or for housing)
4. The proximity to transportation, major roads and airports
5. The proximity to the sea, forest or city center
6. The services available within the project
This is what we will explain in this article, but before starting it is necessary to talk about the Turkish economy during the past few years and the expectations for the current year and the near future, because most people who want to buy a property in Turkey, whether for housing or for investment, have heard a lot about the unpredictability of the Turkish economy, where the exchange rate of the Turkish Lira against the US dollar reached 7.2 after it was about 4.5 in one month.
Is it a sign of moving away from owning a property in Turkey or vice versa?
To start uncovering the facts about the Turkish economy in 2019, we must return a little to last year 2018, which witnessed clear disruptions that no one can deny, such as:
- The sharp depreciation of the Turkish Lira against the U.S. dollar and other currencies in October 2018 ($1 = 7.2 TL), and therefore the total loss of the Turkish lira in 2018 until October is equivalent to about 60%, which is a very high rate and we can consider it a real collapse.
- The interest rate on bank loans reached 24%, the highest ever.
- Inflation rates reached 25% from January to October 2018 while the natural inflation rate is about 10% annually, hence the unemployment rate rose to 11.1%.
*These data were taken from the Turkish Statistical Institute
Perhaps these previous results were not caused by weakness in the Turkish economy per se, but the external pressures and relations that fell between Unites States and Turkey were the main reason for the decline in the exchange rate of the Turkish Lira against the remaining currencies, and the evidence is as follows:
- The trade balance in 2018 in October was profitable, with imports worth $15.6 billion and exports worth $16.4 billion. This means that the trade balance was a profit of $800 million. This difference is rarely achieved within one month.
- As for the balance of services, it achieved a profit of $3.8 billion and thus the deficit in 2018 until October amounted to $27.1 billion and this is a good figure compared to the previous year of 2017, where the value of the deficit in that year was $47 billion.
- The Turkish lira exchange rate improved against the dollar at the beginning of 2019 to reach 5.2 against the dollar.
Other external incentives that help the Turkish economy recover again include:
- The price of a barrel of oil globally dropped from $80 to $63 by the end of 2018. This will come with a great benefit to a country like Turkey that relies on energy imports by 100% because of the Lausanne Treaty, which prevents Turkey from exploring for underground wealth until 2023.
- Lower fuel prices in the market, this helps the markets to highlight their best, especially in the sectors of industry and foreign export, which in turn led to the decline of inflation from 25% in October 2018 to 21% by the end of 2018.
- The large facilities provided by the Turkish government to foreigners to invest in the real estate sector and obtain Turkish citizenship contributed significantly to the increasing demand for investment in the real estate sector and thus the introduction of more external sector into the state treasury and support the local currency.
So can we conclude that the Turkish economy will not suffer any problems in 2019?
Of course, all of the above is not a sufficient indicator of the safety of the Turkish economy from muddling in 2019 and beyond, and we must not forget that the interest rate on loans has reached 24%, which is a high value that will strain the ability of the state to pay debts and can not reduce the interest rate also in this time, because this will increase the fears of foreign investors and thus we return to the circle of lira falling against the dollar due to a shortage in the foreign investmnts in the country.
But what is important and firm is that the Turkish economy is a strong economy ranked 17th in the world and therefore it is solid, and if you are interested in buying a property in Turkey there is no need to worry, that the Turkish economy is an emerging economy and therefore its growth fast and wide.
Finally, before we turn to the prices of apartments in Istanbul to mention that the Treaty of Lausanne will expire in 2023 and then Turkey will be able to extract and benefit from its underground wealth in addition to benefit from the wages of transit ships over the Bosphorus, so who thinks of Turkey in the long-term, the investments will be safe, anyone who thinks in a short-term investment in Turkey must study his project well before it starts.
Prices of apartments in Istanbul
As we mentioned in the beginning of the article, the prices of apartments in Istanbul vary according to several factors and now we will explain in details detail these factors to provide anyone wants to buy a property in Istanbul with the information and adequate answers that help you in choosing the suitable property.
Property prices in Istanbul vary rapidly and let's take examples of the prices of two-bedroom houses with a small area:
You can start with as much as $20.000 in unsafe neighborhoods, up to $35.000 in a residential compound far from transportation or with poor recreational services.
But if we want to talk about a property that is really suitable for stability in Istanbul, we are talking about a property that starts from $60.000 and the price continues to rise according to its location and whether it is ready or under construction, and also according to its proximity to transportation and whether it is with sea view or without, and so the price of the property in the same area can be five times more according to the variables above.
The location of the property: Istanbul has 39 municipalities divided on two continents, Asia and Europ. Here we will mention the most important sectors where real estate prices change with practical examples of each:
It is located on the European side of Istanbul as the picture shown below
It is characterized by its high and luxurious buildings, which are reflected in the architectural designs and luxury complexes and it is characterized as being originally on the high plateau of Istanbul and thus it has a charming views of both the Bosphorus and Belgrade forests. As for real estate investment, real estate prices have increased during the last month by 1.46%. During the past five years, the total real estate prices have increased by 19.6%. The price of the property for 100 square meters is about one million TL and can be rented monthly for more than 7000 TL so the property needs a 12-year investment cycle to return it price.
As for the price per square meter of a property in Maslak, it is an average of 8700 TL for the old normal real estate, and new projects reach more. These are general statistics for tMaslak area, there are projects with a much faster return on investment and you can view our properties in this area here:
B. Basin Express:
It is also located in the European side of Istanbul and this road connects between the two main roads E5, the main road in Istanbul from which the metrobus passes, the most important mean of public transport in Istanbul, and the other road is TEM highway, which is also the main road that connects Istanbul with the rest of the states and through which access to Yavuz Sultan Selim Bridge.
It is worth mentioning that Basin Express road includes many hotels, large corporate centers, banks and a large business forum and it is the first destination for investors, as well as Basin Express road includes Mall of Istanbul, the largest mall in Europe, and it is a fast link to the former Ataturk Airport to be turned now to the largest park in Turkey.
Due to the great importance of this road, many hotel or residential investment projects have been established. Visit the following link: Basin Express Properties
Sisli is one of the prestigious neighborhoods in the European side of Istanbul near the city center, service centers and universities. It also has a fresh air and charming views and its location sown in the map below
As for real estate investment in Sisli, real estate prices have increased by 1.38% in one month while the increase in the value of real estate during the past five years amounted to 64%. As a result of the rise in real estate prices and again from the leasing tout, an apartment of 100 square meters can be rented at the price of 700.000 TL for approximately 3000 TL per month and therefore a house can pay for its monthly rent within about 20 years, and if the value of the profits from leasing is combined with the value of the profits from the rise in prices, this investment process will be profitable well.
You can check on our projects in Sisli from here: Sisli Properties
Welcome to the city of gardens or Bahcesehir in Turkish. Bahcesehir is a city dominated by greenery and beautiful landscapes, and it is characterized by clean air away from the congestion and pollution of the city, which is a luxury area that is characterized by its rapid urban development. Bahcesehir is 20 km away from Ataturk International Airport and 25 km away from the city center. As for the terrain of Bahcesehir, it is an area with many hills, small plateaus and valleys, which increases the beauty of the area and give you a sense of lifestyle in the heart of nature. It is worth mentioning that Bahcesehir area is full of natural green areas, this does not mean that the services are not good enough, it includes a lot of shopping centers and local and international brands in addition to popular markets, cafes and restaurants, and generally it has a calm atmosphere which will provide you and your family with a well-off luxury and healthy life.
As for real estate investment in Bahcesehir, the statistics showed that within one month, real estate prices increased by 2.66%, but over the past five years, they have increased by a total of 70%.
For an ordinary apartment in Bahcesehir area of 100 square meters, the price is about 450.000 TL, and monthly rent is about 1.500 TL per month, and therefore the house needs to compensate for the price of rent to a period of 25 years which is a great period, but this statistic was presented for the current situation. For the future as indicated by the statistics above, this area has a great future in the field of real estate investment as the price per square meter currently starts in Bahcesehir area from 3600 TL.
You can learn about our projects in this area from here: Bahcesehir projects
It is located on the European side of Istanbul, and it is a quiet modern area with a developed infrastructure. Basaksehir municipality was established after it broke away from Kucukcekmece in 2008.
Being close to Basaksehir Valley filled with pine and evergreen trees throughout the world, as well as its largest artificial lake and the largest health center, this has given the area an additional importance, as well as being relatively close to the city center.
Real estate prices in Basaksehir rose by 0.78% which is not high, but if we look at the rate of price increases during the past five years, it is 78%, which is already high, as a house in almost seven years can be sold twice the price at which it was purchased.
For a 100 square meter apartment, the minimum price is about 480.000 TL and its monthly lease is 1.700 TL and therefore the investment return from leasing will be after 24 years.
To visit our real estate in this area from here: Real Estate at Basaksehir
New Istanbul center as many people call it, Beylikduzu district is characterized by the existence of the metrobus line which is the most important public transportation in Istanbul by which you can reach the center of Istanbul within one hour. Beylikduzu is characterized by its clean air and a lot of urban beauty, organization and tranquility. It is also close to Marmara Sea and the sea port where you can easily go to other Turkish cities. Beylikduzu is important because it is developing very quickly and its real estate prices are very appropriate compared to those in areas such as Sisli or Maslak.
As for real estate investment in Beylikduzu, real estate prices have increased in one month by 1.1%, while the increase over the past five years has reached 76%, and this percentage continues to increase. It is worth mentioning that for a 100 square meter apartment you can get it for 300.000 TL and rent it for 1.400 TL per month so that a house can make up for it in 18 years which is an excellent figure for residential properties. The price per meter in Beylikduzu area starts from 2400 TL, and many distinctive new projects are being constructed in Beylikduzu with a charming sea view.
To see our properties in this area: Beylikduzu Properties
Esenyurt area is located on the European side of Istanbul, it is one of the largest and most densely populated areas (2.770 sq. km) with a population density of 750.000 people. In general, it is a popular area where you can find a job and where mix of nationalities are living.
Esenyurt has two very different patterns of life:
- The first type is the overcrowded informal slums, characterized by a pattern of busy life and movement, where properties are cheap in terms of purchase or rent, and for transportation, facilities and services are well available near these neighborhoods.
- The second style is the residential complexes that are characterized by calming and provide a higher level of services. These residential complexes came at several levels on demand, including cheap acceptable services, and the average price of VIP services. Esenyurt is a relatively cheap area for the real estate market and it is characterized by its rapid growth, so, many foreign investors are keen to buy their homes or launch their businesses because it is a promising area for investments, and it will pass the metro line by next year, making the transportation and movement so easy.
If we want to talk about the appropriate part for housing and investment in Esenyurt, it is the southern part, near the E5 highway, that is characterized by a very rapid rise in prices, where prices rose in one month by 1.88%, but in the past five years it has risen by 92.1%, which is near the double.
Apartments in Esenyurt are affordable and for a 100 square meter apartment you can find options starting from 265.000 TL and you can rent them up to 1.400 TL, so the value of your house can be reimbursed in 16 years if you rent it.
There is a lot of talk about in Esenyurt because there are rumors about it. There are many companies offering cheap real estate in Esenyurt for misleading, but in fact Esenyurt has a really luxurious side, so it is better to visit the projects in this area before judging.
To see our projects in Esenyurt area here: Esenyurt Projects
If you are a beach sports enthusiast, then Avcilar is the perfect choice for you. Located on the European side of Istanbul, this area is characterized by a 12 km coastline, as well as several malls and universities, including the E5 motorway, which includes the Metrobus line, the fastest and the most important public transportation in Istanbul. Between the old and modern center of Istanbul, Avcılar has taken on added importance, especially after the establishment of a number of luxury projects in it, where everything you may need is available in one place.
As for the real estate investment in Avcilar, the prices of apartments during one month increased by 1.24%, while for the last five years the rate of increase was 61%, which is a good rate and promising to rise more. For an apartment of 100 square meters, the price starts from 335.000 TL and can be rented in the amount of 1.500 TL per month, and therefore the investment return for this apartment is completed after 18 years.
It is a very lively area if you like to see our projects in this area from here: Avcilar Properties
We chose 8 of the most active areas for real estate investment in Istanbul that we liked to talk about them in this article, and for the points mentioned at the beginning of the article you will find talk about each property separately (what Includes services, transportation, real estate status, etc.) on the website.
We must study the market well before choosing to get the best result, and if your time does not allow you to do so our real estate consultants are specialized in this area and have many years of experience, just contact us for free real estate consultation.