Real Estate market is the fastest growing sector in Turkish economy. According to KPMG report, growth rate of the construction sector is higher than the overall economic growth rate in Turkey for 2017,2018 and 2019. TUIK(Turkish Statistics Institute) reported that between June 2018 and June 2019 1.077.000 properties were sold in Turkey and the proportion of Istanbul is 17,5% itself.
Popularity of the property market in Istanbul led to increasing price appreciation every year for the last 5 years. In 2019, real estate prices increased 20% in Istanbul averagely. Moreover, according to Zingat (market research company) in some areas, price appreciation reached to 143% in last 5 years. Most popular areas in central Istanbul terms price increase,
1-) Kucukcekmece – %143
2-) Kagithane – 95%
3-) Zeytinburnu – 91%
4-) Basaksehir – Bahcesehir – %86
5-) Şişli – %76
6-) Beylikduzu – %76
When also the rental income considered (average 6% annually), Return of Investment (ROI) became 106% – 173% for central Istanbul. It is not surprising that Turkish Real Estate Market attracts many investors from all over the world since it has the highest return of investment in comparison with the other economic instruments.
Amongst the countless answers to this question, first 3 reasons could be listed as location, tourism potential and construction quality.
Istanbul has a unique location. It is the central point for Europe, Asia and Africa. There isn’t any other city in the world that you can reach to 3 continents and up to 60 countries by 4 hours or less flight. Location advantage makes Istanbul a city that will never lose its popularity, also makes investors sure that their investments will not lose value in a long term.
Istanbul is the 8th most visited city in the world in 2019. (According to Mastercard report). Istanbul’s 1000 years of history, natural beauties, active urban life and city investments attract many more tourists every year. That’s why Istanbul is expected to be in the most visited 5 cities in the world by 2025 (Mastercard report).
Number of the construction firms in Turkey is 10 times more than the number of construction firms in all Europe (TUİK report). That makes a huge competition in the market which is reflected on the quality of production. Also, the overseas experience of Turkish Construction Firms gives them an ability to catch world standards in their construction quality.
There are more than 500 real estate projects in Istanbul in different areas. The rule is right location, right price and right apartment at the same time. Choosing the promising locations or popular projects also not enough to invest in Istanbul successfully. You need to know which type of property is popular in which area and what is the right price for that area.
For instance, small apartments (1 bedroom and 2 bedrooms) are very profitable in terms of price appreciation and rental income in the city center. But if you buy a small apartment in outer Istanbul, your investment may not be profitable as much as you desire. Or if you buy a flat with 3 bedrooms in a project mostly consists of small apartments again your investment will not bring you the return that you are wishing to.
Choosing the right property needs an expertise. We as Century21 Sinerji follows up the trends in every location in Istanbul and we have experience with all the successful construction firms. Our 10 years of experience in Istanbul Property Market gives us an ability to determine the projects with the highest return of investments . Before you make your investment, we evaluate numerous factors in order to make sure that you buy flat in Istanbul from a right place and right price.