Most real estate investors are accustomed to using the average price per square meter in a specific area as a relevant measure when considering purchasing new property. However, this approach is not suitable for the Istanbul market.
Today, in our article, we will explore the average property prices in Istanbul and attempt to explain the challenges in calculating them if possible.
We chose this article's title in a manner that catches the attention of this type of investors and aims to clarify why calculating the average price per square meter in a specific area is not feasible. Let's ponder the image below:
This is the Levent area in European Istanbul, a central district with a modern section featuring skyscrapers, some with views of the Bosphorus. Another part of Levent still retains its old construction style, with low-rise buildings and poor-quality construction materials.
Before we try to calculate the average prices in Levent, we need to understand the significant contrast between the old buildings and the modern towers within the same neighborhood.
From the image above, we can observe several important points:
The central areas near the Bosphorus are the oldest in Istanbul, with subsequent urban expansion on both the Asian and European sides.
This rapid population expansion occurred in less than 60 years, reaching areas located about 50 km away from the center of Istanbul.
The population expansion happened in an unplanned manner, given the speed at which it occurred, resulting in a longitudinal city shape and significant distances between different areas.
The rapid and unplanned urban expansion was characterized by haphazard construction, leading to the creation of quickly built houses with poor-quality raw materials.
These older buildings are spread across most neighborhoods of Istanbul, particularly in the central areas.
Let's observe the image from different areas:
From Eyüp Sultan:
We notice that the older haphazard buildings are prevalent in all central areas of Istanbul. This poses a significant challenge for the Turkish government, which intends to replace 2 million old apartments in Istanbul with new earthquake-resistant ones.
Returning to our main topic and once again, with an image from the Levent area:
Approximate per-square-meter prices would be as follows:
In older buildings without a view, the price can start from $600.
In older buildings with a view, the price can start from $850.
In relatively tall, 15-year-old white buildings without a view, the price can start from $2,000.
In the same building with a view, the price can start from $2,500.
In the Ambassador Tower (the tallest building in European Istanbul), the price can start from $7,000 without a view.
In the Ambassador Tower with high floors and a Bosphorus view, the price can start from $10,000.
Based on this simplified statistical analysis, if you want to calculate the average price per square meter in the Levent area, which one should you choose?
Additionally, you can observe that the number of older buildings is many times greater than the number of new ones, making them less desirable for investment, which justifies their lower price, rather than being a golden real estate opportunity as sometimes marketed.
One might say, "Why complicate things? Let's just calculate the per-square-meter price for the new buildings, for example."
Although this might seem logical, it's not applicable, because new buildings also vary in several aspects:
The building's age affects the pricing of properties.
The type of materials used for both interior and exterior.
The direction the building faces and its view.
The floor of the apartment and its view.
Whether the building serves residential or commercial purposes.
Available facilities and their quality.
The precise location within the district.
The construction company responsible for the building, among many other factors.
Therefore, once again, we find ourselves unable to accurately summarize this point. This explains the significant variability observed when a client asks several real estate agents about prices in an area like Şişli or Levent. Some may present offers for old properties at a low price, while others provide an average offer, and yet others showcase the best tower in the entire area. Each perspective can be correct.
For this reason, we always advise clients to gather sufficient knowledge about the property they desire before randomly asking dozens of real estate companies about prices. This approach ensures a more accurate evaluation of the presented offers.
You can contact the Right Home team, specialists in real estate investment, to receive comprehensive and accurate information about the market.