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).
Today, in March 2021, when updating the original article that was written 10 months ago, we will notice from the statistics below confirmation of what we referred to earlier, which is the vitality of the Turkish real estate market even despite the Covid-19 pandemic.
At a time when various markets around the world have declined, the Turkish real estate market has witnessed clear progress and broke records in real estate sales, as more than 230,000 properties were sold in the month of July 2020 all over the country, and this clearly indicates that real estate opportunities in Turkey in general and in Istanbul in particular, it is present at all times and the best is always to search for the best property through the use of a reliable consulting company and start this investment today before tomorrow.
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.
This indicates that the Turkish real estate market has succeeded in providing an attractive opportunity for those wishing to acquire real estate in Turkey in general and in Istanbul in particular, even during the most difficult conditions in the world.
Even after the middle of 2022, the number of sold apartments continues to increase
Now, let's move from general statistics on the Turkish real estate market to the topic of our article today, and let's talk about the conditions of investment real estate, and then we will take 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 long history in this sector and whose 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 payment method on the other.
Top 10 investment projects in Istanbul 2022
We will talk about 4 projects with high rental returns and simple capital inflation
And 3 projects with good rental returns and good capital inflation
And 3 projects with low rental returns and high capital inflation
Then we will talk about the top 10 investment projects in Istanbul 2021
We will talk about 4 projects with high rental returns and simple capital inflation
And 3 projects with good rental returns and good capital inflation
And 3 projects with low rental returns and high capital inflation
The best 10 investment projects in the center of Istanbul in 2022
Projects with a high rental return
1- RH 201 luxury homes project near Taksim Square
The very strategic location near Taksim Square gave this project a lot of advantages and it is able to achieve a high rental return for the following reasons:
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200 meters separates the project from Taksim Square, which is well known and has a very high demand for tourist rental in all months of the year.
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The project's distinctive finishing and services make it a significant competitor when compared to Taksim hotels, which are in high demand most months of the year.
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Being a reconstruction project in the region, this means that there is no competitor close to it at all.
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Many tourists prefer to live in an apartment within a residential complex more than a hotel, and this also gives the project more preference to achieve a high rental return.
2- Project RH 363 hotel apartments in Mall of Istanbul
The distinguished location is always responsible for attracting a high rental return for the project. The location of this project is characterized by the following:
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Many tenants want the Basaksehir area, which is located at the first point in it, and this means a medium strategic location with easy access to the center of Istanbul.
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The presence of services near the property offered for rent is important, let alone the presence of the largest mall in Turkey that includes more than 300 shops, cafes and restaurants completely different under this project and can be easily visited, in addition to the presence of a closed children's city, which is the largest in Istanbul.
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Easy access is not only limited to highways, but there must be transportation means nearby, such as buses and metro lines, and this is available at a very close distance in this project.
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These apartments will be highly finished, qualifying them to attract a high rental income and will be managed by the well-known Hilton Group.
3- Project RH 345 in Maslak
The Maslak area, which includes this project, belongs to the municipality of Sariyer, as well as the Serantepe district, which includes the famous Istanbul Valley Mall. It is worth noting that the Maslak area is the finest and farthest from the noise of the international highway and surrounded by more green spaces, especially in this project and also features the following:
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The presence of a full-service mall on the first floors of the project, separate from the entrance to the project.
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Very high finishing is better than the neighboring Maslak projects.
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Views of the Bosphorus.
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Close to the metro, transportation stations and the luxurious Istinye Park Mall.
4- Project RH 193 in Kait Hane, opposite Istanbul Valley Mall.
It is known about the Kaithane area that it is an area close to the center of Istanbul, Sisli and Maslak, but it is dominated by old properties that can attract rental returns, but not high. As for this project, it is located on the second side of the international highway opposite the famous Istanbul Valley Mall, and this qualifies it to attract rental returns high:
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The strategic location in front of Istanbul Valley Mall at more suitable prices and the same level of luxury.
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Easy access to the international highway and from there to the center of Istanbul or the center of Istanbul easily.
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Excellent finishing, which will give the project an advantage over the neighboring projects in Kait Hana.
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There are several stages in the project suitable for investment.
Projects with good rental return and good capital inflation
1- Project RH 477 in Serantepe
All the apartments of the famous Istanbul Valley project have been sold, and today investors are still looking for a similar project in terms of location, finishing and view. This project will secure a high price upon delivery and also a prestigious rental return for the following reasons:
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The same Istanbul Valley construction company and the same high-end finishes
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The location that is very close to the Istanbul Valley project leads to benefiting from the Istanbul Valley Mall on the one hand and staying away from the congestion in it on the other hand.
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Great views of the Belgrade forests.
2- Project RH 459 in Topkapi
The project is under construction and consists of 3 phases. The first phase will be delivered at the end of 2023, the second at the end of 2024, and the third at the end of 2025. Therefore, it is a huge project and an excellent service, until it is delivered. There is a distinctive head rise and then an excellent rental return for the following reasons:
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The well-known construction company, owner of the land at the same time, and a guarantee from a Turkish government bank.
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The high finishes that will be done in the project and various usual and unusual services such as the creation of 4 different types of gardens and green spaces.
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The strategic location at the transportation node of the metro, tramway, metrobus and a large number of buses heading to all parts of Istanbul.
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It is considered the largest and most luxurious new project in the region, and this will make it a center for attracting high-budget tenants.
3- The new Tema park project.
After the great success achieved by the first phase of this project in the popular Basaksehir area of foreign investors and even those wishing to live, the second phase of the Tema Park project was launched, and it is characterized by the following:
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It is located at the beginning of the popular Basaksehir area, and unfortunately today we notice a great confusion between the high-end Basaksehir area and the remote area. For more information, you can contact us to share maps and detailed information.
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The project is under construction and is being worked on by the most important construction companies in the country, thus ensuring timely delivery and quality finishing.
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The central location is near the new Istanbul Canal and the international highway, making it easy to reach anywhere in Istanbul.
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The high demand for the first phase of the project, whether for rental or resale, makes the profit in the second phase guaranteed.
Projects with low rental return and high capital inflation
By this type of projects, we mean the projects under construction, and therefore we considered that the rental return is low. For example, for an investment with the aim of 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 It never means 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 short-term investment suitable for Turkish citizenship (3 years)
1- Project RH 120 in Beyoglu
The launch of a new phase of this successful project is considered a guaranteed investment gain for the following reasons:
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The strategic location of the first phase of the project and the absence of competing projects nearby.
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Excellent finishing and attention to services in the first stage.
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The construction company that has proven its ability to successfully construct the first phase and within the specified plan.
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Competitive meter prices compared to other projects in Beyoglu municipality.
2- Project RH 507 in Istanbul Valley.
A high-end project with a few apartments and views of the Belgrade forests from each apartment in the project.
It also features the following:
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A construction company, the same as the well-known Istanbul Valley construction company.
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Fewer apartments than neighboring projects, and therefore faster and easier resale is higher.
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A higher style than the neighboring projects, and therefore it is intended to attract the tenant with a high budget or who wants housing, who will buy later.
3- Project RH 80 Phase II in Sisli
We note that the second phase of the same good investment project is often also good, and to make sure of that, you only have to communicate with our advisory team to provide the appropriate comparisons and studies for your request.
Why RH 80 project in Sisli?
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The second phase has just started and the prices are appropriate and will be delivered in the middle of 2024, which means enough time to achieve a high investment return
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The price of the apartments in it is appropriate, as it is possible to get a room and a hall at the date of amending this article, up to 420,000 dollars only, and this is not possible in similar neighboring projects.
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The project has options with views of the Bosphorus for those wishing to live, and options with low floors without a view for those wishing to fully invest.
The projects are many and varied. You can use this article to get an idea, but to suggest the most appropriate project for you, the best is to communicate with us and submit your requirements so that our team will choose the most suitable for you.
The best 10 investment projects in the center of Istanbul in 2021
We will talk about 4 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.
4- RH-191 Luxury project under construction in Beyoglu area near Taksim Square
The advantages of Beyoglu area are well known, as it combines history and heritage in addition to the mediation between the Golden Horn Bay and the Bosphorus, as well as Sisli business center and Nisantasi, the luxury shopping street.
The special thing about this project can be mentioned in 3 main points:
- Unique modern design in an area dominated by old buildings will help very much in the second point:
- The project offers a two-year rental guarantee at the present time with a return of up to 7%, and even after the end of the guarantee, the project has the advantages that help in obtaining a high return.
- Prices in this project are very competitive for properties that are completely located at the important historical landmarks in Beyoglu, such as Taksim Square, Istiklal Street and Galata Tower, and at the same time access to all of these landmarks can be reached in less than 10 minutes from the project site.
Projects with good rental return and good capital inflation
1- RH-318 Luxury Apartments in Nisantasi Ritz Carlton
Should we start with The Ritz-Carlton brand, which is well known, and the cost of one night's stay in the suite of the Ritz-Carlton Istanbul is $ 400 even during non-peak times, or should we start from Nisantasi Street, which is also need no definition, which is considered the most luxurious neighborhood at all and includes abdi ipekçi street that is famous for its higher apartment rents not only in Istanbul, but in all of Turkey.
- Location: No person has ever visited Turkey for the purpose of tourism and the acquisition of luxury gifts and did not pass through Nisantasi Street of the municipality of Sisli in the heart of European Istanbul near Taksim Square, Istiklal Street, Galata Tower, Ortakoy Mosque, Dolmabahce Palace, and a lot of five-star high-end hotel.
- Prices: Nisantasi is one of the oldest areas in Istanbul and therefore we will find almost all of its buildings are old and the old properties are evaluated in it by their owners, and as it is a high-end central area, we will find for properties close to the highway the price per square meter starts from $5400 down to $11,500 per square meter.
- Investment feasibility: to learn about the feasibility of investing in this project, you can review our previous article: Ritz Carlton apartments for sale in Nisantasi Istanbul
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 in the middle of 2021 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 10 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 and it was updated in the first quarter of 2021, 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.