We often hear that real estate investment in Istanbul is closely related to the investment location and that investing to be ideal should be at the center of Istanbul and this is true, but do you wonder that in order to be able to invest in Istanbul you need a budget that suits the center of Istanbul (more than 200 thousand dollars)? To try answering this question, we will analyze the elements of successful investment and study the possibility of dropping it to other areas outside the center of Istanbul.
What are the elements of a successful real estate investment in Istanbul?
- the price of the property is less than the prices of the neighboring properties in the same area.
- the possibility of selling it after the end of the investment period is easy and possible.
- it has desirable specifications by the local market, which also constitutes more than 96% of the real estate sales and purchases in Istanbul.
- the operating plan in it be feasible if it is ready or the expected amount of capital increase is high if it is under construction.
- To be in a strategic location that contributes to increasing the feasibility of the investment and facilitating the process of ending the investment in a timely manner.
Before we go into detailing the previous elements, we must first define Istanbul investment sectors.
The first sector: shown in the drawing below, and includes the center of Istanbul, which mainly includes the areas of Beyoglu, Sisli, and Maslak, in addition to the coastline at Zeytinburnu, Bakirkoy, and Florya.
What are the advantages of real estate investment in the center of Istanbul?
- Investing depends on a specific time and the closer we get to the Istanbul center, the easier it will be to finish the investment and sell the property again with additional profits.
- New projects in the center of Istanbul are limited, and therefore the demand for them is great now and in the future, so when sold again, the profit rate will be high.
- The rental income for real estate in the center of Istanbul is higher than the rental income for real estate away from the center.
- If the project is under construction, this is also more profitable for short-term investment.
- Istanbul’s central areas never lose their value, the more urban expansion spreads across Istanbul east and west, the greater the importance of the central areas, and the higher their investment value.
And many other detailed reasons for the preference of the Istanbul center for investors. You can learn about it completely by contact with our consulting team.
The second sector: shown in the drawing below, and mainly includes all areas after the first sector, all the way to Kucukcekmece lake.
In this sector, the prices are average and it is a residential sector with a concession that includes fully serviced family areas. The central location gives it additional housing advantages, it is close to the center of Istanbul and close to the suburbs, as well as the old and new Istanbul airport, and also has infrastructure about to completion, which makes it a distinguished place for housing more than investment.
The third sector: shown in the drawing below and mainly includes the outskirts of Istanbul after the Kucukcekmece lake
this sector is characterized by that the more we head west, the more new and promising areas for growth, especially since the infrastructure in it is often still under construction, prices are the more we head west, more appropriate. Generally, areas in this sector are cheaper than the areas of the second sector, the main problem in the second sector and this sector is the large supply in the market and the multiplicity of options available and this weakens the investment significantly and this is what we will talk about in detail when offering the appropriate opportunity for small investors in Istanbul.
Before we return to the elements of successful investment in Istanbul, we must answer two important questions quickly:
- What is the benefit of investing in other Turkish cities outside Istanbul?
To answer the question, it is necessary to identify other cities, and accordingly, we reach the answer, but in general, Istanbul is distinguished from the rest of the cities of Turkey by the following:
- The population of Istanbul exceeds 20 million and reaches 25 million with foreign residents and tourists, and therefore it is a city the size of a whole country, and the presence of foreigners in it is familiar to its population.
- The vast majority of those who want to buy real estate in Turkey go to Istanbul, and therefore we find in Istanbul the diversity that suits all these nationalities and cultures, from educational and medical centres, restaurants, and fashion houses.
- Istanbul includes the Bosphorus Strait, it is bordered on the south by the Sea of Marmara, on the north by the Black Sea, and it connects Asia and Europe with no other city in Turkey similar to Istanbul.
- The weather in Istanbul is moderate, compared to the rest of the Turkish cities. In the north and east are very cold cities, and in the south are cities with hot weather.
- Istanbul is the commercial capital of Turkey and a meeting place for businessmen and international brands.
The only advantage that a foreigner may be looking to buy a property outside Istanbul in Turkey is the price difference, and this is true, but we should not forget the following points:
- In the southern coastal cities, the weather is good during the summer period, which is only 4 months, and the remaining of the year is a harsh winter.
- Istanbul services and infrastructure, such as transportation, government, and educational center, cannot be compared with any other city with cheaper real estate prices.
- Growth, development, and possibility of selling the property easily not available in the remaining cities at the same rate as in Istanbul.
- How about the Asian side of Istanbul?
There is no doubt that the Asian side of Istanbul is a dynamic and modern, that is growing rapidly and has solid and well-connected infrastructures, but it is an environment that is incubated for foreigners as in the European side in terms of educational and medical services, restaurants, fashion and the Turkish language in it is a key factor that cannot be overcome as in the European side.
Consequently, the percentage of foreigners in it is small, and therefore less interest is given to investors and those wishing to purchase residential property.
And now we are back to talking in detail about the elements of a successful investment property and revealing the unique opportunity to invest for the owners of the small budget.
- That the price of the property be less than the prices of the neighboring properties in the same area
This condition is very important for achieving profits after the end of the investment period and challenging the increasing offer of real estate. Always, before making the purchase decision, the investor examines neighboring properties of the same level and considers that cheaper real estate has priority over the rest.
- The possibility of selling it after the end of the investment period is easy and possible
This is the biggest real challenge facing real estate in the second and third sectors, as there is a lot of supply and therefore demand is less than supply. This means that selling the property and achieving profits after the investment period expires is very difficult. But if the project itself guarantees resale after 3 years with a guaranteed profit rate of 35%, here we can say that this element is included in the project.
- It must be of desirable specifications by the local market, which also constitutes more than 96% of real estate sales and purchases in Istanbul
The Turkish local market prefers real estate within residential or commercial complexes with a few units as few as possible because it is a community that loves social life and residents or business owners prefer to get to know the neighbours and therefore this must be taken into account when choosing an investment property. Also, the local market prefers real estate close to transportation and highways, especially if a property is to be commercially invested.
- That the operating plan be feasible if it is ready or the expected amount of capital increase is high if it is under construction
There is no value for a ready-made investment property if the return on investment is weak because you will not benefit from the investment period from the weak rental return, and you only have the capital increase profits when selling and it itself is a risk if the property is not chosen with the appropriate specifications for that. The rental return for ready-made properties must not be less than 8% if you are purely an investment purpose.
- Being in a strategic location that contributes to increasing the investment feasibility and facilitates the process of finishing the investment in a timely manner
The strategic location is the last essential step for achieving a successful investment, which will double your profits and may push you to extend the investment plan for several additional years, because the successful strategic location brings you a high rental return on the one hand and ensures a significant increase in capital from resale on the other hand.
Often these elements were all available in some real estate in the center of Istanbul, but again for the investor with a limited budget, does he have a successful investment opportunity?
Here we will define the Eresin Yaşam Center project in Beylikduzu from the third sector and we will study whether or not it is a successful investment project.
- The project is located in Beylikduzu, a distance of 50 meters from the E5 highway and this protects the residents from the noise and at the same time provides easy access to this road, which includes the Metrobus, which is the fastest means of transportation in Istanbul and connects Istanbul, Asian and European together.
- Less than 100 meters from Perlivesta Mall, and the distinctive shops and cafes in the area, in addition to that, the project itself includes a shopping center on the first four floors and also a number of external shops.
- It is 3 km from Marmara Park Mall, which is well known, it can be reached by the Metrobus, private car, or by walking, as the pedestrian road is wide and contains many trees, cafes, and attractive stores.
- Beykent University is on the roads immediately opposite to the project in addition to having several private and public schools nearby.
Through this, we note that the requirement of the strategic location is available, but what about the price per square meter in the project compared to similar projects nearby?
The price per square meter in Eresin Yaşam Center project is 20% cheaper than similar projects in the same area. For price details and comparison, we will leave that to our real estate consultants to provide accurate information, and thus the first element is investigated here.
Regarding resale with profits, which is a major challenge for real estate of the second and third sectors in this project, a 3-year resale guarantee offer was made and 35% profit was achieved, thus this condition is fulfilled in this project.
Do you think the local Turkish market desires this project?
Given the project’s proximity to transportation on the one hand, and that it has a small number of units, this fully guarantees the desire of the local market to purchase a property like this. The project offer is characterized by desirable qualities in the local market and it is easy to sell.
Finally, the operating plan and its usefulness in this project
Since the project has the concept of a home office, this means that investors can easily prepare their properties to be offices and therefore have a high rental return of more than 8%, and this means that the delay in selling the property means a high rental return, which is what drives many investors today by buying real estate in Eresin project without asking for a resale guarantee.
Hence, we note that the investment conditions are achieved in this project, and therefore the small investor can pick ripe fruits from this investment, and also the project offers the following advantages:
- The project allows the buyer to choose the appropriate furniture for the purpose of purchasing it if he wishes to be residential or office.
- The project includes two buildings, one of which will be a hotel, which in turn will give more importance to the other investment building that we are talking about.
- The project is suitable for Turkish citizenship and it is possible to buy 6 properties in it within the amount of citizenship, and this gives more flexibility in the division of investment.
- The last project has a studio license (one-room apartment only) and this means that no future competition is expected.
- Prices start from less than $ 50.000 for cash payment, with a resale guarantee.
Learn more about the Eresin Yaşam Center project by contacting us via WhatsApp or Chat.