Investing in Istanbul

safe real estate investment in Istanbul

Last edited:Feb 12, 2024
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safe real estate investment in Istanbul
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We can define safe real estate investment as an investment based on sound and stable foundations that enable the real estate investor to create a comprehensive entry and exit plan and execute it fully without any changes in the established laws.

 

From reading the above definition, regardless of whether you previously owned properties in Istanbul, this definition applies in all cases. Whether you belong to the group that received proper investment advice and achieved a successful real estate investment and are now reaping your profits, or you belong to the second group that received real estate advice from unreliable sources, leading to an unsuccessful real estate investment that can only be exited by enduring further losses.

 

Achieving a successful real estate investment is highly transparent and consists of clear steps that can be measured, despite the noise created by inexperienced real estate companies in this field, misleading investors and directing them towards unprofitable investments.

 

For example, investing in agricultural lands near the new Istanbul Canal is considered the best type of investment in Istanbul. We have seen this sponsored and unsponsored advertisement numerous times from several real estate companies, whose sole objective is to convince clients to buy land now before the opportunity is missed.

 

Now, if we were to receive advice from a real estate expert on this matter, they would simply tell us that investing in lands is a long-term investment from which profits cannot be realized in the coming years. Do not be deceived by the increase in price per square meter from year to year; try selling instead of buying, and you will immediately realize the reality of this increase. Additionally, when they present agricultural lands that will soon be converted into residential areas, they neglect to clarify that only a fraction of these lands will be included in the first phase of development, exceeding 400,000 lands. Therefore, there is scarcity in this investment that you are betting on for success in the coming years. Furthermore, if the Istanbul Canal project were to begin today in actuality, it would require at least 10 years to be completed, not to mention that the exact route of the canal is not yet defined.

 

Now, after reading this response, it becomes clear that the matter was extremely transparent. However, perhaps the marketing approach and the beautiful girl who persuaded you to invest in land 60 km away from the center of Istanbul seemed like a better option than buying a property in the center of Istanbul itself at the same price.

 

There are many other examples that we encounter daily of clients who have been deceived, whether intentionally or unintentionally, and have purchased unsuitable properties for investment, finding themselves currently stuck in these investments. They consider investing in Turkey to be a completely wrong idea and advise those around them to stay away from real estate investment in all its forms in Turkey.

 

Now, before we discuss the foundations of safe real estate investment in Istanbul, let's talk about an example of a successful real estate investment that has actually been achieved.

 

Dozens of investors in our company were advised to own a property in a unique project in the Şişli area four years ago when the project was under construction. Due to multiple advantages of the project, including a highly competitive price and a distinctive concept that appealed to both tenants and future buyers, the project was quickly and remarkably sold out. Today, the price of a one-bedroom apartment in this project is 620,000 dollars. However, how much capital was required to purchase this property when we first advised it?

 

The old investors who received the initial real estate consultation were able to purchase this one-bedroom apartment for only 180,000 dollars. Investors in the following year were informed that prices had increased to 260,000 dollars, but there was still room for growth. Even this second group made profits of over 100% within just three years, in addition to obtaining Turkish citizenship for free.

 

Real estate investment in Istanbul is profitable if you understand how it can be profitable, and it must be safe at the same time.

 

What are the foundations of safe real estate investment in Istanbul?

  • To be legally sound is the most crucial foundation in real estate investment to ensure its safety, as investments not based on legal principles approved by the state can be at risk at any time with the issuance of new laws, as was the case with the new Tourism Rental Law in Turkey. The issuance of this law led to the failure of all promises of achieving fantastic returns through the purchase of unlicensed apartments for tourist rentals, followed by furnishing them and renting them out on a daily basis to tourists.

 

  • It should be based on general logical foundations anywhere in the world. While each country has its own investment strategies, there are common principles. For example, obtaining a property in the city center is better than obtaining a property far from the center, even if it is larger in size. Additionally, obtaining a property in a strategic location near the city center is better than obtaining a property in the city center itself but in popular neighborhoods, even if it is larger in size or has other advantages. Furthermore, no real estate advisor can guarantee that a distant area from the center of Istanbul will become the most important in the coming years because there are numerous options far from the center, and it cannot be asserted that any one of them will definitely be the best in the future years. Distant properties are only suitable in case there is not enough budget to obtain an excellent property in the center, in which case choosing a property far from the center with multiple investment advantages may lead to profit rather than loss.

 

  • Some investors fear off-plan properties due to concerns about delayed delivery. We understand these concerns, which is why we only select properties constructed by reputable developers known for their successful previous projects. It is not reliable to trust a local contractor who constructs only one building or a small project, not only in terms of delivery time but also in terms of construction quality. We have witnessed enough failures from unknown local contractors during the unfortunate earthquake in southern Turkey, while the buildings of the government-owned TOKI company remained standing (which is natural given the intensity of such an earthquake), so we deal with real estate developers at the level of TOKI or often even better.
    This type of investment risk not only jeopardizes your investment but also the lives of the people who will later inhabit the property.

 

  • It is essential to create a suitable timeline for this investment, allowing flexibility in case of any changes in the surrounding conditions. For example, one cannot purchase a property far from Istanbul's center and when it becomes clear that reselling will be difficult, opt for an open-ended plan for this investment, without defining a specific timeframe. In reality, this is not the best possible option. Additionally, if an investor wants to sell their property in unfavorable market conditions, such as inflation or recession, and insists on selling the property in such conditions, despite the significant losses it may incur, it might even cover all the profits gained at the beginning of the investment. Therefore, having a clear plan is the best choice, and if the desire is to terminate the investment, it can be done as long as the surrounding conditions are suitable.

 

  • Obtaining professional real estate consultations from the beginning to clarify all the positive and negative aspects of any type of property that may appeal to the investor will make the establishment of a timeline possible and easy. For example, a clear timeline cannot be defined for investing in lands because this type of investment is long-term and can become profitable after 10 or even 30 years. However, a very clear plan can be established for owning an off-plan property from a reputable developer in the city center, where a suitable time can be chosen to offer this apartment for sale after it has been purchased at the lowest possible price, and this is what we will assist you with in our company. You can contact us and obtain a free real estate consultation at any time.

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