Investing in Istanbul

Everything you need to know about Istanbul real estate in 2024

Last edited:Feb 19, 2024
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Everything you need to know about Istanbul real estate in 2024
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Whether you are an experienced investor in Istanbul real estate or conducting your first research to understand the Istanbul real estate market, you will find valuable content in this article that summarizes many research processes for you and provides you with a summary that saves you from reading a lot of conflicting opinions, analyzing them, comparing them, and reaching a correct conclusion.

 

We will discuss several important points, not only for the new investor, but also because we have noticed from our daily experiences that investors who have previously owned several properties are not aware of some of these fundamentals. If they were aware of them, they would have chosen their properties better. We often hear from an investor who owns five properties in Istanbul that they praise a portion of them for providing them with significant profits, while considering the other portion as an unsuccessful experience. Based on our experience in the Istanbul real estate market since 2012, we will summarize the most important points that ensure the success of real estate investment.

 

Important points before buying property in Istanbul:

1-Define your goal of owning the property.

Whether the goal is investment, residence, or a vacation home, each of these objectives has more suitable properties than others, and there are even details within each of them. We will mention some simple comparisons and provide links to other articles as a comprehensive reference.

 

  • If the goal is investment, there are different investment approaches. One approach focuses on capital appreciation, such as buying a property under construction with specific specifications and selling it later upon project delivery. Another approach is based on rental income, where the time frame is relatively longer compared to the first type of investment. Here, we are talking about completely different properties than the first type. There is also dual investment, which relies on capital appreciation in addition to high rental yield. It requires specialized analysis based on each person's situation, budget, and suitable payment plan. You can contact us for a free consultation on this matter.

 

Here are some articles we have discussed on investing in Istanbul real estate:

 

Common mistakes made by real estate investors in Istanbul

What are the best real estate investment strategies in Istanbul in 2024?

Best investment projects in Istanbul 2024

safe real estate investment in Istanbul

 

Also we have tons of useful content you can reach it from the link below : real estate istanbul by Mehmet Hekimoğlu

  • If your goal is residential and owning a property in Istanbul, you should know that Istanbul is a very large and diverse city. You can rent a property for $100,000 in one neighborhood, while in a neighboring neighborhood, you can rent a property for several times that price for the same area. This is because the diversity in Istanbul depends not only on the regions but also on the specific neighborhood. This is something we observe daily through our communication with clients interested in owning properties in Istanbul.

 

For example, a client may request a two-bedroom apartment in the Şişli area, in the center of European Istanbul. Here, we have several possibilities:

  • An older property in an old building in a non-seismic-resistant neighborhood, starting at $90,000.

  • A modern property in an ordinary building without amenities, which is seismic-resistant, starting at $250,000.

  • A property in a fully serviced complex with beautiful views from high floors, starting at $450,000.

Here, we can see that when a client contacts any real estate advisor and requests a property in Şişli, the advisor will present one of the above options. If the client contacts another advisor, they may receive different options with significantly higher or lower prices than the first advisor. In reality, both advisors may have reasonable offers, but a client who does not realize this point may think that one of them is exaggerating the prices!

 

Choosing a residential property involves many details that cannot be mentioned here, but we will provide links to previous articles:

What is the average property prices in Istanbul?

Why Are Prices of New Properties in Central Istanbul High

Buying Property in Turkey with Installments

  • If your goal is also a vacation home, there are different options to consider. If you're not concerned about being close to the center of Istanbul, you can purchase a property in the villages surrounding Istanbul. For less than $200,000, you can buy an independent villa with a splendid view and shared recreational facilities in a fully serviced villa complex. However, if you prefer to spend your vacation in a location within Istanbul but away from the city center, you can find a two-bedroom apartment with a similar price to the villa outside Istanbul.

 

On the other hand, if you wish to be in the heart of Istanbul in one of its upscale areas such as Maslak, Şişli, or Zeytinburnu near the sea, it is possible that a two-bedroom apartment and a living room could cost three times the budget we discussed earlier.

 

Remember that to find the best property for you, it's important to focus on what you want and not make premature judgments about the high prices of certain properties without having a deep understanding of them.

 

2-The properties in Istanbul are highly diverse

, as we mentioned before. Therefore, each neighborhood or district has its own advantages and disadvantages that you should be aware of before choosing the right location and property for you. At Right Home, we first study the client's requirements and the suitable areas for them before discussing the available projects and offers. We will provide some examples to illustrate the importance of this stage:

 

  • If the client requests, for example, two bedrooms and a living room for the purpose of housing, the following two different options can be simply compared:

An upscale residential complex with full services in an open area. It was created by a reputable real estate developer who used very good construction materials. This residential complex is located in the Ispartakule area, which is an area after Basaksehir and about 40 km away from Sisli, the center of Istanbul.

The new complex among old buildings is located in the Kaytana area and has modest entertainment services and good construction materials. It is less than 4 km away from the center of Istanbul Sisli.

 

Both of the options mentioned above are almost priced the same for the same number of rooms, and there is no doubt that the first option appears much better in all aspects compared to the second option, except for one crucial point, which is the distance from the city center. In Istanbul, it is highly valued by residents to stay close to the city center, even if it means having a smaller and less luxurious apartment. Being close to the city center ensures reasonable commuting time to their workplaces, even during peak hours, compared to a larger and more beautiful home that would cost the owner at least an hour and a half of daily commuting time to reach the city center in the morning, and a similar duration in the evening.

 

Therefore, you would be missing out on a very important investment opportunity when a real estate advisor misleads you by claiming that Kağıthane is an old and random area that no one wants to live in.

 

On the other hand, another advisor might mislead you by claiming that Kağıthane is a better residential area than Şişli because it is closer to the city center, even if your preferences are space, amenities, and tranquility rather than proximity to the center.

 

So, which one is better?

Each case has its own specific answer, and as an investor or someone interested in buying property in Istanbul, your role is to gather accurate information about each area's positives and negatives, and then make a choice based on your requirements.

 

  • Let's give another example for investment

 

The well-known Mall of Istanbul is one of the largest malls in Europe and not just in Turkey. It includes a ready-made residential section with excellent entertainment services in a central area of Istanbul.

 

A project in the Maslak area, the modern center of Istanbul, is under construction in the early stages, surrounded by Belgrade forests on both ends, which are forests that are not allowed to be cut down, and there are no new building permits in the area.

 

At first glance, the investor must choose the first option (given that the prices are similar between the two projects) because the project is ready for immediate rental and offers integrated services. On the other hand, it is located about 20 km away from the center of Istanbul in the second project, and it takes less than an hour to commute during peak hours and only 15 minutes outside peak hours. Additionally, Mall of Istanbul is an important and well-known attraction area, which can generate higher rental returns than the average.

 

However, upon closer inspection, we can easily find that the second option is actually located in the center of Istanbul, making it a better and more desirable area. Furthermore, the forest views cannot be obstructed in the future, while in central Istanbul, new towers can be built.

 

Furthermore, the first property in central Istanbul has reached its peak price and it is unlikely that anything can increase its value. On the other hand, there is still a significant possibility for price appreciation in the second property, as the project is under construction and there will be infrastructure development that will increase its value.

 

In conclusion, the average price per square meter in the area is lower than the price per square meter in the first property, while it is higher than the price per square meter in the second property. This is a crucial point in achieving a successful real estate investment, which is buying below market value.


3-Learn about the characteristics of each property on the market.

And it is a simple yet crucial point, and let's talk about it briefly. We can say the following:

Specifications of the new property:

  • It is sold by the property developer or their authorized agent, giving it an official status and providing greater guarantees and stability in terms of offers and prices.

  • Multiple alternative options are available within the same project in case the offered property does not meet the buyer's preferences in terms of view, size, or floor.

  • Installment payment plans are available, which is of utmost importance when choosing a new property from a property developer.

  • It has an assessment that perfectly matches the property's price, making it suitable for obtaining Turkish citizenship more easily and quickly for those interested.

  • There is always an official entity representing the project in case any issues arise after the sale or during the handover process.

  • The property is brand new, and all social facilities in the project are also new.

  • There are no external commissions requested from the client.

 


Resale property specifications:

Contrary to all the mentioned specifications of new properties above, there is an important advantage to resale properties, which is that the price per square meter is generally cheaper than that of new properties.

Therefore, it is advisable to deal with a real estate consultant who is capable of securing any suitable offer for your needs, whether it is a new or resale property, and whether it is located in central Istanbul or in areas far from the center. Avoid consultants who insist on specific projects without providing logical reasoning.

If you have reached this point and understood all the aforementioned information, you undoubtedly have good knowledge about the Turkish real estate market and can evaluate the offers presented to you based on that.

To avoid further elaboration, we would like to mention important general notes, and don't forget that you can obtain free real estate consultation by contacting our specialized team.

 

General Notes about Istanbul Real Estate in 2024:

1- It is essential to establish a proper timeline for real estate investment in Istanbul, as it greatly impacts the type of property that will be suitable for you. If your timeline is within three years, it is advisable to choose a property under construction and sell it upon completion. If your timeline extends beyond five years, you can consider ready properties or properties under construction, taking into account the expected infrastructure development within your investment timeframe.

2- Clearly communicate your objectives to the real estate consultant from the beginning to receive better assistance. Provide any relevant information that can aid in the search, such as a preference for avoiding older neighborhoods or a priority for properties with a sea view. Importantly, ensure that your primary objective is clear from the start, whether it is for investment purposes, residential purposes, or a combination of both.

3- Properly compare different areas and the available options within each area. Without doing so, you may perceive centrally-located properties as overpriced and non-central properties as too far away. To avoid this, compare properties within the central areas to each other and compare non-central properties to their counterparts. This approach will provide you with a clearer perspective.

4-Evaluating real estate consultants without having a strong foundation of knowledge about Istanbul is challenging. Many investors make the mistake of visiting Istanbul with the intention of purchasing a property and meeting numerous consultants without a solid understanding of the city. It is crucial to have a solid groundwork to differentiate between marketing talk and realistic information.

5-Choosing a broker with a long-standing reputation in the market ensures that you can access their services for any post-sales needs and benefit from their free assistance. Even when you decide to sell your property after several years, they will assist you without charge. Beware of brokers who do not belong to a reputable company with a clear and established history in the market, even if they claim to offer lower fees. The truth is, if you require any post-sales services, you will not find any support from them.

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