Table of Contents
Introduction:
“Investing in buy-to-let property is like planting a tree: the best returns come with time and proper care” -Franklin D. Roosevelt-
Istanbul, where the Bosphorus Strait gracefully separates two continents, holds the role of a large nexus of culture, commerce, and history. This city offers a wealth of opportunities for real estate investors. With its perfect fusion of ancient dose and modern energy, Istanbul till today provides a strong setting for buy-to-let chances.
In the face of global economic shifts and local challenges, Istanbul’s property market continues to adapt and make the grade. The city’s strategic location, expanding population, and growing global appeal compel progressive increases in property values and attractive rental yields. Ongoing infrastructure upgrades, such as the new metro lines and some urban renewal projects, are further boosting property values and creating fresh investment opportunities.
In this blog, we’ll explore how Istanbul remains a preferred choice for buy-to-let investors, even among global economic shifts. We’ll talk about the latest market overview, spotlight the most successful neighbourhoods for investment.
I- Real Estate Market in Turkey 2024:
Since 2015, the European property market has painted a fine picture of growth. Germany’s market has ticked up by a modest 10%, while France has seen a gentle 12% rise. Belgium’s property prices have edged up around 8%, Switzerland has grown typically by 6%, and Austria has seen a stable increase of about 11%. But Turkey is a different narrative entirely. Over the same period, property prices have climbed by an impressive 1,194%, with Istanbul’s prices soaring to levels comparable with New York and Tokyo. This 1.194% is no joke.
Recently, however, the scene has shifted fiercely. The global economic flip-flops, marked by high inflation, market instability, and even the stock market have seen a historic dip in, has turned the real estate industry into an unexpected buyer's market. We can say since June 2023 many investors, overwhelmed by the overall situation and lacking the patience to weather the storm, are seeking to offload their properties. This exit has created a unique window of opportunity for insightful buyers.
In Turkish real estate investment, timing matters as much as location. Identifying when is the right moment, especially when property prices hit their lowest after a previous growth cycle, can present unique opportunities. Now is the moment, before a new wave of growth starts.
In times like these, when the market is flooded with sellers, the clever investor recognizes that it’s a perfect moment to seize. The current climate offers an exceptional chance to acquire properties at attractive prices, positioning oneself for future gains as the market recovers.
For those who understand the rhythm of real estate, today’s conditions in the Turkish market are not just a chance but a golden opportunity. Missing out on this moment would suggest a missed opportunity for any serious investor aim on capitalising on the next big wave of growth. But HOW? is the question.! and the answer is buy-to-let.
II- Today’s Opportunities in The Real Estate Market in Istanbul:
Having explored the city’s strong appeal to both foreign visitors and residents, in addition to the Turkish citizens arriving in Istanbul, it's clear that this high demand for rental properties is significant. Notably, rental rates have increased by 16% in the past month, reflecting this growing interest in the rental yields.
Returning to our initial point about the latest market trends, we see that the current conditions favour buyers. Prices for both second-hand and new investment properties are decreasing, presenting a valuable opportunity. This brings us to the key conclusion: Today, buy-to-Let properties are now shining brightly, waiting for investors to hunt the opportunity.
1- Why Buy-to-Let properties?
Given that we’re currently in a buyer’s market, investors have access to a range of significant development projects available at prices below their true value. Essentially, you can purchase a property now and hold it until the market recovers, which is expected to happen soon. In the meantime, you can secure a strong rental yield, ensuring both immediate returns and future appreciation, noting that Average gross rental yields stands at 7.13% -August 2024-
2- How to Choose the Best Buy-to-let property deal?
“In real estate, it’s not just about buying property; it’s about buying the right property." and when it comes to buy-to-let, choosing a property is like selecting a partner, you need to make sure it matches both your long-term goals and offers solid returns in the meanwhile.
To guarantee success, it’s essential to go through the market with the guidance of an expert and well-connected real estate agency. At Right Home, we are more than just a real estate agency that negotiates and sells properties; we possess the experience and market insight needed to analyse daily trends and shifts. We keep our investors informed about the best strategies for each phase of the market. This approach helps us build a broad network of loyal investors. Therefore, it’s crucial to partner with experts who are dedicated to achieving your success as much as their own.
At Right Home, we have proven our commitment by being honest with clients about market conditions. As a company that believes in investment, we not only guide clients but also invest in their plans ourselves. We support them with the best strategies and deals tailored to their goals.
Therefore, partnering with experts who are genuinely invested in your success is essential.
III- Why does Istanbul always come up when discussing real estate in Turkey?
1- Population:
Turkey is undeniably a country of diversity, harmony, and unique charm, but Istanbul often steals the spotlight in real estate conversations. Istanbul is more than just a city; it represents a way out mentality and a style of life. Istanbul is like a world unto itself, demonstrating ambitions, opportunities, and goals, in other words Istanbul is the new American dream. Even for many Turks, moving to Istanbul after graduation is a rite of passage, representing the following of professional success and personal dreams. Istanbul has a population of over 15 million residents, comprising 19% of the Turkish population, by the end of 2023, Istanbul had Turkey's biggest foreign migrant population, with 34.5% of foreign nationals in Turkey living there.
Not to mention, foreigners who flock to the city, seeking business opportunities across various sectors and industries. Coupled with its vibrant tourism scene, Istanbul captures the interest of diverse global audiences.
This unique aspiration and diversity makes Istanbul not just a city, but the heart of Turkey's real estate story as well.
2- Location:
Istanbul’s strategic position in the map, linking two continents gives it an important privilege. Much like its diverse population, the city’s market and trade are equally varied and flexible. When global fluctuations hit, Istanbul adjusts by connecting with a wide range of industries and markets, maintaining balance even among tension. This constant adaptability and extensive commercial reach mean that Istanbul is always alive with activity, never missing a beat.
3- The country’s dedication to progressive development:
Firstly, according to the most accurate statistics between all ''developing issues'' is the HDI (Human Development Index) ranking, which states Turkey is one of the ''very high human development'' countries in the world. The CIA world factbook, again, states it as a ''developed country''
We go back to Istanbul which is home to the world’s second-largest airport, which has quickly become a major travel hub, operating 24/7 and connecting many international routes.
New Plans for the near future:
-Turkey and its neighbours are eagerly anticipating the Istanbul Water Canal project, a game-changer set to revolutionise trade and marine transport with high efficiency.
-In Istanbul’s Asian side, the Istanbul International Financial Center is rapidly taking shape, promising to establish the city as a key financial focus.
4- Touristic Flow:
According to the Culture and Tourism Ministry, the city welcomed 5,244,936 foreign visitors from January to April 2024, marking an approximately 10 percent increase from the same period last year. This surge is a clear indication of Istanbul's growing popularity as a global travel destination.
Travellers are flocking to experience the city's unique corners of ancient and modern, from the magnificent Hagia Sophia to the unique energy of Istiklal Avenue, are set to see record numbers of visitors.
Istanbul’s superpower is undeniable. All of these factors highlight the city’s key position in the real estate market, and the data we’ve discussed leads us to the conclusion that Istanbul is the checkmate move in the game of buy-to-let. This conclusion sets the stage for the next part of our article.
IV- Most Successful Neighbourhoods for Investment in Istanbul:
The best areas to buy a property in Istanbul in 2024.
Conclusion:
Finally, Istanbul is opening more doors than ever for real estate investors to increase their wealth and for newcomers to access the market with profitable opportunities. This is your moment to seize.
