Due to travel ban, Book an appointment to buy a property online

Right Home

Blog
The 9 best investment projects in Istanbul for 2020-2023

The 9 best investment projects in Istanbul for 2020-2023

Font Size :

Considering the spread of the COVID-19 epidemic, the Turkish real estate market has proven its durability and entitlement to withstand at a time when many other commercial markets froze, and several giant companies declared bankruptcy. What is unique in the COVID-19 crisis is that investors all over the world entered into a stalemate and bewilderment, which led them to keep their money in the form of gold or foreign currencies such as the dollar, and thus the Turkish real estate market is supposed to shrink like the rest of the other sectors to till the end of the crisis. However, according to the official statistics from the Turkish Survey and Tapu Institute, the percentage of real estate sales within May 2020 was only 44% less compared to May 2019 (the height of the Turkish real estate market movement).

This indicates that the Turkish real estate market succeeded in providing an attractive opportunity for those wishing to purchase real estate in Turkey in general and in Istanbul in particular, even during the most difficult conditions in the world.

Now, let us move from the general statistics on the Turkish real estate market to the subject of our article today and talk about the conditions of the real estate investment and then we take a look on the best investment projects for this year.

 

 What are the conditions of the investment property? 

1- It should be easy to sell when the investment plan ends

There is no point in an open investment that its owner is unable to terminate at the time he wants, as it is an indefinite restriction of assets, and even if he made profits during a certain period of time as long as the owner was unable to end it the profits are likely to decline and even turn into losses during the next period. In the currency market, selling shares at a time when demand decreases, causes acceptable losses, but in the real estate market worldwide, selling the property at the place and the time when demand decreases means large losses to the point that the first profits are canceled and can make the ROI negative.

 

2- Positive and high ROI

The return on investment in the real estate market consists of two important factors, namely rental return, and capital inflation when selling

Profit= rental return+ capital influx upon sale

Investment return= profit divided by principal capital X100

 

* Calculating the return on investment in Istanbul

Many customers make the mistake of calculating the correct return on investment by calculating the annual income of the property and neglecting price inflation or retreating it when selling. To illustrate this, we will know the return on real estate investment in Istanbul and then give an example:

Return on investment= annual rental return+ capital influx upon sale

The mistake made by many customers who want to invest in non-investment areas such as Esenyurt, for example, is that they focus on the annual rental return from the above equation without paying attention to capital inflation or its decline when selling.

Many promotional offers in the market promise customers with a rental guarantee that sometimes reaches 10% annually for a period of two years, or 8% annually for a period of three years, and so the investor thinks that after 3 years he will collect 24% of his capital and this is true, but when reselling the property he may not be able to sell it at a higher price than what he bought, on the contrary, the value of his real estate is less than what he bought and this makes real estate investment a loss, we will give an example in numbers:

If one of the clients bought a real estate with a value of 100 thousand dollars with an 8% rental return for a period of 3 years, and after this time the investor wanted to finish his investment and sell his real estate after obtaining the Turkish citizenship, he finds that the value of his real estate in the market is equivalent to 70 thousand dollars, thus:

Profit amount= 8%x 3 years- the property's capital decline rate

Profit= (3X $8,000- $30,000) = (-6000$)

ROI = ((94,000$- 100,000$)/ 100,000$) X 100 =-6%

Through this example, it becomes clear to us that although there is a high rental return, the investment was lost.

But when choosing a correct investment location, the formula is as follows:

If one of the clients bought a property worth 300 thousand dollars in the center of Istanbul, the return of the lease without a rental guarantee will not be less than 5% annually, and after three years if the investor wants to re-sell the property then the property will achieve profits on the capital not less than 15% due to the strategic location. Thus, the formula becomes:

Profit amount= 5%x 3 years+ real estate capital influx

Profit= (3X 15,000$+ 45,000$) = (+ $90,000)

ROI= ((390,000$- 300,000$)/ 300,000$) X 100= 30%

We have another exclusive formula with a return of more than 45% within three years for Right Home customers. If you would like to view it, write your information to contact you.

 

3- The investor realizes how to profit from this investment

In the second step, we clarified that the total investment return is the sum of the rental return with the inflation of the capital.

Some properties have high rental returns and simple capital inflation, such as hotel apartments of international brands, as well as regular apartments that are suitable to be rented as hotel apartments in upscale areas teeming with expensive hotels such as the Beyoglu, Nisantasi, and Besiktas.

Some real estate has the average rental return and average capital inflation, and they often represent real estate in the center of Istanbul, which is fully finished and ready to start renting, such as Maslak and Sisli, to name a few.

The last section of investment property is where the rental return is almost non-existent and the capital inflation is large and it represents the properties under construction in the center of Istanbul such as Kagithane, Maslak, and Sisli.

The investor’s awareness of the way in which his investment will be profitable is considered as the main pillar of developing an investment plan that includes the location of the property, the timing of the purchase, the timing of the investment’s termination, and the collection of profits.

 

To achieve these steps, it is necessary to deal with a reputable real estate company with a proven history in this sector and its representatives have strong relationships with project sales offices. This in turn will help you as an investor to obtain the largest possible discount rate on the one hand, and flexibility in the way of payment on the other hand.

 

 The best 9 investment projects in the center of Istanbul in 2020 

We will talk about 3 projects with high rental return and simple capital inflation

And 3 projects with good rental return and good capital inflation

And 3 projects with low rental return and high capital inflation

 

 Projects with a high rental return 

1- RH-120 project in Piyalepaşa Street in Beyoglu district

This project is located on a plot of land in the eye of Istanbul Beyoglu, close to:

  • Taksim Square and Istiklal Street
  • Besiktas Corniche
  • Nisantasi Street
  • Galata Tower
  • Golden Horn Bay
  • Historical monuments such as Sultan Ahmed Mosque and Hagia Sofia and their surroundings
  • Istanbul First Bridge
  • Main road E5 and TEM
  • Tramway and other means of transportation

This unique location that brings together the central site on one hand and modern construction within the old and archaeological buildings, on the other hand, makes this project an unparalleled investment opportunity.

What distinguishes RH-120 from the rest of the Beyoglu projects?

  • The cheapest meter price among new projects in that area.
  • The project was recently delivered and thus ready for immediate investment and leasing.
  • The design of the project that makes it a simple small village in the heart of the huge city of Istanbul.

 

As for the project properties, spaces, photos, and videos, so that the explanation is not long, we leave this task to our consulting team to provide you with them.

 

2- RH-5 hotel apartments project in the Basin Express area

Although we always advise investors to go to the center of Istanbul and not to risk in developing areas with many projects such as Basin Express Street, some people have their own plans for long-term investment and aspire to reap positive results in Basin Express Street, for this section of insistent investors to invest in this area we recommend them RH-5 project, which is a hotel apartment of a famous Chinese brand, provides a 10% rental guarantee for two years, and after that a 20-year contract with the hotel’s profit-sharing system between investors after deducting operating and management fees.

What distinguishes RH-5 from other Basin Express projects?

  • Hotel apartments for a well-known Chinese brand.
  • 10% rental guarantee for a period of two years and the possibility of extending the contract through a system of participatory profits.
  • In the case that the Basin Express area is expected to grow in the long term, it is better to own a hotel apartment than a housing apartment.

 

As for the project properties, spaces, photos, and videos, so that the explanation is not long, we leave this task to our advisory team to provide you with it.

 

3- RH-36 hotel apartments project in Sheraton Tower, Bahcesehir

Although Bahcesehir is a residential area suitable for the summer vacation and for those who want a quiet life away from the crowding of Istanbul's center, the Sheraton project as an international brand is able to flip the scales and made these hotel apartments a source of very high rental return compared to the real estate of Bahcesehir

RH-36 project contract includes a 3-year rental guarantee of 7% net value without administration and operating fees. After this period has ended, the contract for profit sharing will be made. The Sheraton project is also distinguished by the availability of a down payment of 35%.

What sets RH-36 apart from other projects in Bahcesehir?

  • It is the most prominent international brand in the whole area.
  • 3-years net rental guarantee 7%.
  • There is an opportunity to obtain inflation in the capital since the competition of the same level is almost nonexistent.

 

As for the project properties, spaces, photos, and videos, so that the explanation is not long, we leave this task to our advisory team to provide you with it.

 

 Projects with good rental return and good capital inflation 

1- RH-163 Vadi Istanbul Mall project

The project is ready for housing and it is located in Maslak area with a charming and direct view of the Belgrade forests and no building permit will be given to any project after it in front of the Belgrade forests ,therefore this legendary view will remain preserved for life, also the project is located in a tourism area it is like a resort that includes everything you need, therefore it has a good rental return and also being the last project in the Belgrade forests area, it will ensure the capital inflation as well.

What distinguishes RH-163 from other projects in Maslak?

  • The only project that includes a large mall within it and a dedicated metro station.
  • The closest project to the Belgrade forest, with no chance to build anything after it.
  • The price per square meter is lower than the prices per square meter in neighboring projects that have the same specifications.

 

As for the project properties, spaces, photos, and videos, so that the explanation is not long, we leave this task to our advisory team to provide you with it.

 

2- RH-180 project with direct sea view in Zeytinburnu area

Marine projects in Zeytinburnu and Bakirkoy area, between old and modern, all are ready for housing, except for this project that will be delivered before the end of 2020, and this is one of the reasons that guarantees capital influx later. The architectural design that is characterized by engineering intelligence and modernity attracts attention and the idea of ​​no cement walls and instead of that a double glass offers several advantages:

Broader and more beautiful panoramic view.

  • Ensure that the walls are not eroded over time by humidity.
  • The most beautiful view from the outside gives the project a prestige.

 

What distinguishes RH-180 from other marine projects on the Sea of ​​Marmara?

  • The best engineering design that provides all apartments without exception a sea view.
  • The project is under construction, which means guaranteed profit on delivery and after.
  • Price per square meter compared to similar projects is the cheapest.

 

As for the project properties, spaces, photos, and videos, so that the explanation is not long, we leave this task to our advisory team to provide you with it.

 

3- RH-134 project of offices and corporate tower in Sisli

Sisli is an upscale, fully developed area that includes several luxurious towers that guarantee your business excellence in case that you have an office in it.

This project is located on the main street, strategically located on the E5 line, which provides easy access to the first Istanbul Bridge, which links Istanbul of the Asian and European side.

There is no need to mention the areas near Sisli because it is close to everything, as well as service centers and a lot of shopping centers and government departments.

What distinguishes RH-134 from other projects in Sisli?

  • Prices are always on the increase and the remaining options are very limited.
  • The central location near public transportation is also Metro and Metrobus.
  • The rental return is high, as it is suitable for offices and corporate centers.

 

As for the project properties, spaces, photos, and videos, so that the explanation is not long, we leave this task to our advisory team to provide you with it.

 

 Projects with low rental return and high capital inflation 

We mean by this type of projects the projects under construction, so we considered that the rental return in it is small, for example, for an investment with a goal to obtaining Turkish citizenship for a period of 3 years if the project is under construction in the first and second years, the investor will benefit from the rental return only in the last year, but this does not mean that this type of project is not profitable, on the contrary, and according to our experience in the real estate field, we have noticed that the capital inflation in the projects under construction is more feasible than the rental return in the projects ready for a short-term investment suitable for Turkish citizenship (3 years).

 

1 - RH-80 Bomonti apartments project under the supervision of Rotana

It is the preferred project among investors wishing to obtain Turkish citizenship and resale the property after 3 years because the first section of the project will be delivered at the end of 2020 and this date may be affected by the effects of the epidemic of COVID-19 and in any case, the delay in the delivery date means the greater the profits for the investors. The project location in Sisli Bomonti area is a sufficient advantage because this central area is full of services and infrastructure, and this project is the only one under construction.

RH-80 project is distinguished from the rest of Sisli projects:

  • The only project under construction in this central area.
  • Project management by Rotana for a very simple fee.
  • Wonderful views of the Bosphorus, the historical city, and the very distinct interior.

 

As for the project properties, spaces, photos, and videos, so that the explanation is not long, we leave this task to our advisory team to provide you with it.

 

2- RH-153 project under construction in Maslak

The only project in Maslak, with the guarantee of the Turkish government under construction, and therefore the delivery of the project in a timely manner and within the agreed specifications is an obvious matter. Also, the project buildings will be delivered in several stages, and this allows the investor to choose the appropriate time for him in case he wants to get only the capital inflation, he can choose the last stage, but if he intends to live or rent, the first stage can be chosen.

RH-153 project is distinguished from the rest of Maslak projects:

  • The largest project under construction in Maslak.
  • The only project with the guarantee of the Turkish government.
  • The project is located directly on the TEM international road.

 

As for the project properties, spaces, photos, and videos, so that the explanation is not long, we leave this task to our advisory team to provide you with it.

 

3- RH-136 under-construction flats in Beylikduzu on the marina

Although we moved away from the center of Istanbul, the main advantage of this project is that when purchasing the apartment a sale guarantee contract is signed after 3 years with a 40% profit guarantee and therefore it is very suitable for Turkish citizenship and enables the investor who wants to own a large apartment or two with to get an opportunity for him here.

The project has excellent finishing and it is close to the marina and the sea of ​​Marmara, in addition to the fact that the price per square meter in it in comparison with the neighboring ready projects is much cheaper.

RH-136 project is distinguished from Beylikduzu projects:

  • Resale guarantee with a 40% profit within 3 years.
  • A project under construction and a property bond in it ready and therefore suitable for Turkish citizenship.
  • Luxury finishes and competitive prices in the area.

 

In the end, this article cannot be considered as a reference for the best 9 investment projects in Istanbul because there are always distinct opportunities and competitive offers, so it can be considered as s summary of prominent investment projects in Istanbul in the year 2020, but when there is a decision to buy an investment property in Istanbul, you have to communicate with us so that our advisory team provides you with all the offers available at the moment you contact us.

 

Eresin Project