*Introduction

Istanbul, a city known for its rich history and vibrant culture, is also a rising capital for real estate investment. In recent years, the country has experienced challenging times, earthquakes, presidential elections, and issuing primary tourists residence permits.. All of this background has affected the international market of all domains around the country, not only real estate. 

Therefore, Zooming on the obvious facts, In April 2024, Turkey's housing market showed a mix of declining sales. Accordingly, during this month, a total of 75,569 houses were sold nationwide, marking an 11.8% decrease compared to April 2023.

Further, recent economic fluctuations have created a unique market condition that presents an attractive opportunity for buyers. 

Despite the current economic uncertainty, Istanbul remains a dominant force in Turkey's housing market, with 12,406 units sold in April 2024. Thus, several factors suggest that now is the opportune moment to invest in Istanbul's real estate. This article explores the key reasons why buying property in Istanbul right now could yield significant long-term benefits.

*1. Strong Seller Demand Among Economic Uncertainty

Experienced investors understand that a downturn is not a reason to panic but an opportunity to enter the market.

Besides, the current real estate terrain in Istanbul is marked by an unprecedented level of seller activity. The economic downturn in Turkey has led many property owners to seek quick sales to stabilise their financial situations. This high seller demand creates a buyer’s market where competition among sellers can lead to advantageous purchasing conditions. 

Moreover economic crises are basically temporary; history shows that economic downturns eventually give way to recovery. As the Turkish economy begins to stabilise, property values are expected to rise. This presents a valid argument for purchasing property now, while sellers are more motivated and willing to negotiate. The opportunity to acquire property at a reduced price before the economic situation improves and values increase can result in substantial savings and potential future gains.

*2. High Competition Creates A-list Opportunities

A buyer’s market happens when the supply of homes surpasses the demand. 

In other words, there are more properties available than there are buyers interested in purchasing them. This imbalance gives buyers an advantage over sellers, as the overflow of homes coupled with fewer buyers compels the market to favour those looking to buy.

And that is exactly what is happening now in IStanbul, the influx of properties available for sale has elevated competition among sellers. 

Reflecting on a market with numerous listings, as an outcome buyers have the leverage to negotiate better terms and prices. Considering sellers facing financial pressure are often more flexible, offering reduced prices or favourable conditions to close deals quickly.

Hence, for investors this competitive environment means greater potential for securing properties below market value. This situation is ideal for those looking to capitalise on the current market conditions. By leveraging the high competition among sellers, buyers can find excellent investment opportunities that may not be available once the market stabilises and fewer properties are on offer. 

*3. Current Prices are Relatively Low

Property prices in Istanbul are currently lower than historical averages and are expected to rise with future developments. The real estate projects available today are priced competitively, especially when compared to upcoming projects that are set to feature advanced construction techniques and higher quality standards. As new developments incorporate more expensive materials and technologies, their prices will reflect these enhancements.

Consequently, investors who purchase now can benefit from the lower prices before they inevitably rise with future projects. Properties purchased at current rates are likely to appreciate in value as the market evolves and new, more expensive projects enter the scene. This presents a strategic investment opportunity to acquire assets at today’s prices and realise gains as the market improves.

For more detailed information regards the types of real estate whose prices have decreased and explain the reasons behind this with some live examples, you can check this previous blog:

Real estate prices are going down in Istanbul

*4. Strategic Investment for Future Gains

Investing in Istanbul’s property market now positions buyers to take advantage of future growth. As the economy recovers and the real estate market stabilizes, property values are anticipated to increase. By purchasing property in the current market, investors can benefit from the eventual appreciation of their investments.

This forward-looking strategy is based on the expectation of economic recovery and market expansion.

For good measures, Turkey's economic outlook for 2024 and beyond has become more positive, according to the World Bank and the Organization for Economic Cooperation and Development (OECD). Despite ongoing challenges, such as inflation and the need for extensive reconstruction following the severe earthquakes, there is cautious optimism about Turkey’s future economic performance. Also, the optimism is driven by strong domestic demand, which has helped support the economy even in the face of these difficulties.

 Looking forward, the World Bank predicts that Turkey’s economy will continue to grow, with an expected growth rate of 4.3% in 2024. The positive outlook extends into 2025, with a projected growth rate of 4.1%. This anticipated growth reflects confidence in Turkey’s economic resilience and potential for recovery.

To affirm that buying property now means securing assets at a lower cost and reaping the rewards of future market growth. Investors who act now will be well-positioned to capitalize on the forthcoming upswing in Istanbul’s real estate market.

Tips for Buying in a Buyer’s Market:

A buyer’s market presents a prime opportunity for purchasing a new home. To make the most of this advantageous situation and negotiate the best deal, consider the following strategies:

1. Take Your Time:

In a buyer’s market, there are typically fewer buyers, which means you can afford to be more selective and patient. Use this to your advantage by taking your time to thoroughly explore various properties. This approach helps you find the home that best suits your needs without feeling pressured to make a quick decision.

2. Explore options with the right broker:

To ensure you make an informed choice, address a trustworthy and expert agency in order to provide you as many properties as possible before submitting an offer. Having a comprehensive understanding of what’s available on the market will help you identify the best value and strengthen your negotiating position.

3. Compare with Similar Properties:

Researching comparable properties, known as “comps,” is essential for effective negotiation. Comps are recently sold or currently listed homes with similar features in the same area. Analyzing these can provide valuable insights into fair pricing. 

4. Pay Attention to Days on Market:

Observe how long a property has been listed. Homes that have been on the market for an extended period may be more negotiable, giving you an edge in negotiating a lower price. Sellers may be more willing to entertain offers and reduce the price to expedite a sale.

5. Consider Future Resale Value:

Think about the potential for future resale value when choosing a property. Even in a buyer’s market, selecting a home in a desirable location or one with features that are likely to be appreciated can be a wise investment.

By implementing these strategies, you can effectively navigate a buyer’s market and secure a favorable deal on your next home.