Introduction: 

Turkey's real estate market is experiencing rapid evolution, drawing interest from global investors. At the frontline of this transformation is Istanbul, the beating centre of Turkey's economic and cultural life. As the city expands and introduces new age developments, the market for affordable properties experiences continuous change, presenting both challenges and opportunities for investors and homebuyers also.

The prices of properties in Turkey go up and down in response to a variety of economic factors and market conditions. 

This lively environment is healthy, in a way it allows smart buyers to recognize opportunities emerging from these shifts. Whether it's through strategic investments or finding value in growing neighbourhoods. Whether you're looking at houses that could increase in value or new businesses in growing areas, the market invites bold investors to take advantage of its flexibility and potential for long-term growth.

 

1. The Real Estate Market in Turkey

 

The residential real estate market in Turkey is currently experiencing healthy growth, driven by increased demand from foreign investors, urban trends, and favourable macroeconomic conditions. What really attracts buyers to this market are the modern and luxurious properties that combine eco-friendly and steady living options. 

There is a notable shift towards urban properties and mixed-use developments, merging residential and commercial spaces to meet the current needs of residents and investors alike. 

Further, Turkey's real estate market stands out due to distinctive features like the Citizenship by Investment program, which consistently entices foreign investors, while coastal properties remain popular for their view of beauty.

Besides, The market's expansion is supported by continuous economic growth, low interest rates, and government incentives aimed at stimulating real estate development across different property types and key districts. 

Housing units and new malls, in particular, are witnessing important growth amid ongoing construction activities and infrastructure improvements.

 

2. Istanbul Real Estate Market

 

Istanbul, strategically located at the intersection of Europe and Asia, is a focus in Turkey's developing real estate sector. The city offers high-value investment opportunities among a backdrop of strong transportation networks, lively tourism, and cultural amenities. 

Furthermore, recent developments, such as Emlak Konut's announcement of a major project in February 2022 involving the construction of 900 residential units in the Sariyer district, highlight Istanbul's active growth and potential. Valued at TRY 3.1 billion (USD 211 million) and scheduled for completion by this year, this initiative marks Istanbul's as a shining star for real estate modernization and investment. 

It's true to say that despite economic challenges like high interest rates and currency flux impacting market flows, Istanbul's real estate market continues to attract attention with significant year-over-year price increases, particularly evident with more than 10% rise in April 2023 alone. This growth was faster than inflation rates and returns on bank deposits, confirming that Istanbul is a strong and promising place to invest in real estate.

 

3. Best Areas to Buy Property in Istanbul

 

When thinking about buying property in Istanbul, one of the first questions people ask is where are the best areas to invest. It's important to decide if you're buying for living or investment purposes. 

Istanbul, as Turkey's economic and cultural capital, attracts a lot of interest for real estate investment. Some buy property to get Turkish citizenship, while others aim for profitable investments.

For living, popular districts on the European side include Beyoğlu, Şişli, Bakırköy, Beylikdüzü, Sarıyer, and Fatih. 

On the Asian side, areas like Üsküdar, Suadiye, Maltepe, and Ataşehir are preferred. 

While for investment, best areas on the European side are Taksim, Beşiktaş, Başakşehir, Beylikdüzü, Basınekspress, and Maslak. 

On the Asian side, Kartal, Pendik, Çekmeköy, Ataşehir, and Üsküdar offer promising investment opportunities.

 

Each area has its strengths and profit potential. Here are some of the most popular areas in Istanbul:

**Başakşehir – Bahçeşehir:

Known for modern buildings with high comfort standards and excellent social, cultural, health, and educational facilities. It's also close to Istanbul Airport, making it highly convenient.

**Basınexpress:

Situated between E-5 and TEM Highway, it's ideal for buy-to-rent investments with projects like hotel-style apartments. Its proximity to major shopping malls, hospitals, and universities adds to its value.

**Beylikdüzü:

A green district on the outskirts of Istanbul with wide streets and affordable projects. It's gaining popularity and is expected to see price increases with the upcoming metro lines project.

**Zeytinburnu – Coastal Line:

Offers luxurious projects with sea views, suitable for a high-end lifestyle rather than pure investment due to its elite status and advantageous location.

**Şişli – Mecidiyeköy:

Known for its expensive projects, including hotel-themed luxury residences. It's centrally located and highly accessible from all parts of Istanbul.

**Maslak – Levent – Kağıthane: 

commercial areas with ultra-luxury residences and skyscrapers. Maslak, in particular, is famous for its residential complexes and shopping centres plus its huge forest.

4. Istanbul Housing trends

The real estate market in Istanbul has seen remarkable development, elevating standards of living for its residents. 

Recent global events, including the pandemic, have profoundly influenced people's perceptions of their homes. There has been a significant increase in demand for detached houses and residences with gardens, reflecting a shift towards prioritising space and outdoor living. 

There's also a growing focus on health and safety within homes. Smart and healthy homes have become crucial in meeting these changing preferences and needs.

 

**Smart Home Tech

Smart home technologies are transforming how we interact with our living spaces, refining comfort, safety, and energy efficiency. 

Home automation systems allow remote control of lighting, heating, and cooling systems. Smart security systems, cameras, and locks further bolster home security, offering peace of mind.

 

**Healthy Design

 

The design of our homes can significantly impact our health. Features like large windows for natural light, furniture made from natural materials, and indoor plants that improve air quality create a healthier living environment. Additionally, technologies such as smart air purification and water filtration systems further enhance indoor air and water quality.

**Green Gardens

 

The pandemic has drawn attention to the importance of outdoor living spaces. There's been a surge in demand for detached houses with gardens, which offer opportunities for organic gardening, flower cultivation, and connection with nature. Green spaces not only improve physical health but also contribute to mental well-being.

 

As the preference for garden homes grows post-pandemic, the integration of smart and healthy home features becomes increasingly important. These elements collectively enhance comfort, safety, and overall well-being. 

In summary, homes in Istanbul are improving significantly by combining more space with smart and healthy inventions. It's important for prospective buyers to consider these options to ensure their homes are set up for a better quality of life in the future.

 

5. Buying a House in Turkey as a Foreigner

 

Foreigners frequently select Turkey for travel and permanent residence due to its favourable climate and high living standards. In recent years, there has been a surge in foreigners arriving from around the globe to purchase property, whether for citizenship programs, residency, or purely as an investment opportunity.

Therefore the purchase of real estate by foreigners in Turkey is governed by specific legal regulations, defined in Article 35 of Land Registry Law No. 2644. This legal framework allows foreign nationals to invest in Turkish real estate. 

( you may check the detailed blog in regards: Obtain Turkish Citizenship by Buying a Property In 2023

 

Why buy property in Turkey?

There are several advantages, the country's strategic location, stable economic environment, and diverse property options catering to various needs attract numerous international investors. Compared to many European and American countries, real estate prices in Turkey are relatively affordable.

In addition, acquiring property in Turkey is straightforward for foreign investors, unlike in many other countries where restrictions may apply. 

For foreigners, owning a home in Turkey not only offers savings on living and vacation expenses but also serves as a profitable investment opportunity. The high rental yields and potential for property appreciation make Turkish real estate particularly attractive to foreign buyers.

 

Conclusion: 

Investing in Turkey's thriving real estate market, especially in Istanbul, the city of opportunity, is a smart move that can significantly upgrade your life and living standards. Whether you're purchasing for investment or residence, Turkey offers all-time potential. To go through the market successfully, partnering with an expert real estate agency is crucial for making the right decisions and finding your right home.