With the boom and expansion of the real estate market in Turkey in general and in Istanbul in particular, especially for the purpose of pure investment or residential investment, the number of new properties being sold increases from year to year, whether in the local market or to foreign investors, according to the Turkish Statistical Institute.
The number of properties sold in Turkey has reached one million and 491 thousand properties, more than a third of which are new properties being sold for the first time:
As usual, Istanbul’s share of new properties sold is the largest and approaches 200 thousand properties each year. This means to balance the theory of supply and demand, at least 200 thousand new properties must be created in Istanbul alone every year to cover this continuous and increasing demand, and this is really a very large number for every year .
In fact, due to the Corona pandemic, which led to raising shipping costs all over the world on the one hand and the temporary economic freeze on the other hand, the idea of creating new projects has become more risky than before, for the following reasons:
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Costs of imported basic construction materials increased by more than 300%
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The increase in shipping costs for importing these materials by no less than 600%
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Investors’ anxiety during the pandemic period and their preference for maintaining liquidity is one of the simple and obvious things that construction companies have been able to anticipate, and therefore a greater risk that will be incurred if they establish new projects.
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Global inflation, which reached 9.1% in America during the month of June on an annual basis, and exceeded 60% in Turkey.
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All this led to an accelerating rise in real estate prices in Turkey.
The period required for establishing new projects is no less than two years, and no one expected the vaccine to appear so quickly, and the complete ban in a country like Turkey would not exceed several months.
All of the above mentioned so far in this article leads to the following points:
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A large consumption of the new ready section of the real estate for sale in Istanbul, and consequently a severe shortage of supply in the market.
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The presence of cautious investors who preferred to buy real estate near the center of Istanbul as much as possible, which led to a new increase in demand in light of the lack of supply for new properties in the center of Istanbul.
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The rise in inflation rates with the decline of the epidemic led the investors who retained liquidity during the epidemic period to transfer this liquidity to safe assets, and are there more safe assets than real estate?!.
The important question now is: Has the opportunity for real estate investment in Istanbul ended, given the points we discussed?
Of course not, the increase in demand is based on constant and increasing reasons and is in line with the increasing importance of Turkey in general and Istanbul in particular in all economic, political and regional aspects.
But today, to buy a really profitable investment property in the center of Istanbul, we need nearly half a million dollars to create this investment, which is expected to reap 35% on a dollar basis over the next three years.
And now we come to the topic of our article, which is should I have half a million dollars to invest in Istanbul?
In fact, there are very promising new areas in the field of real estate investment far from the center of Istanbul, but at the same time you have the basics of growth necessary to achieve a distinguished investment profit and with prices starting from 130 thousand dollars. You can start a successful real estate investment in Istanbul.
What are these areas? What guarantees the success of real estate investment?
Istanbul is a city that was formed transversely and expanded rapidly in the east and west. The map above shows the percentage of population density in each of its regions, and we can distinguish the following sectors:
The central sector of Istanbul includes areas close to the Bosphorus, such as Sisli, Maslak and Beyoglu in the European section, and includes Uskudar, Kadikoy and Beykoz in the Asian section.
According to what we mentioned above, the investment in these areas to be feasible requires about half a million dollars. Or the areas close to the center such as Kate Hana, Ayoub and Zeytinburnu, a successful investment can be found with a slightly smaller budget.
The central sector of European Istanbul, such as the Basin Express, Basaksehir, Kucukcekmece,
And in Istanbul, the Asian urban areas, Atasehir and Çekmeköy.
In these areas, there are a large number of new projects, and therefore reselling them is not easy. At the same time, the infrastructure is almost complete, and this reduces the feasibility of investment. Finally, the budget required for a successful investment is still above 200 thousand dollars.
The sector of the European suburbs of Istanbul, such as Beylikduzu, Esenyurt and Bahcesehir, and the extension of these areas to Buyukcekmece.
And in the Asian Istanbul, Maltepe, Kartal and Pendak.
And because today we are looking for new areas for real estate investment, they must be characterized by the following:
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There are no infrastructures such as metro lines in order to take advantage of the opportunity to build them later and get a better return on investment.
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Few surrounding services, thus benefiting from the doubling of prices when these surrounding services are completed, such as schools, universities, health and recreational centers.
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Surrounded by old neighborhoods, there are plans to renovate them, or factories there are plans to move them, thus benefiting from the improvement of the area in the future.
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The lack of competition in the new projects surrounding it as much as possible to keep the opportunity for resale at a later date present and possible.
Can you imagine that you will get a property with this view above, with a down payment that does not exceed $130,000.
In a quiet area suitable for investment and summer without nearby infrastructure and with the opportunity to increase growth in the coming years.
In a distinctive view that cannot be obscured in the future when you find that the distance between the project and the sea has only building permits for villas, and the view from the ground floor even in this project will be like the picture above.
Learn about this project and more advantages of this area by contacting us.
If we take an example from Asian Istanbul:
When you realize that the property near the sea has a price of not less than 400 thousand dollars and the property from which the picture is taken, the prices start from 130 thousand dollars, you can immediately conclude that investing here will bring you a return of up to 100% over the next few years when the services and infrastructure of your property a little further away about the sea.
More details can be obtained by contacting us and identifying the best new investment projects in promising areas with budgets that suit everyone.
