Why Investors Are Buying into the Istanbul Real Estate Market

The Istanbul real estate market is undoubtedly Turkey’s star
performer when it comes to attracting investors from all
corners of the globe. Historically, it has always been the
number one destination in the country for domestic property
sales, and in 2015, it overtook the Mediterranean region of
Antalya as the most popular destination for foreign property
buyers in Turkey.

Last year, it hit a record high with 8,182 properties sold to
foreigners of various nationalities and 238,383 domestic sales.
But what exactly is luring domestic and foreign buyers to
invest in Istanbul real estate and more importantly, will this
trend last? We think so.

Why Investors Are Buying into the Istanbul Real Estate
Market

۱: Capital Growth Potential

Even though Istanbul has always been one of the major cities of
the world, both historically and in modern times, it is still
an infant of the globe’s real estate market. Neglected for many
years because of a dismal economy, lack of financing and
credit, as well as substandard urban infrastructure, it wasn’t
until the turn of the century that the government started to
modernise the real estate market of Turkey to bring it inline
with other destinations of the world.

The result is that buyers are cashing in while it is still
young and overall, property anywhere in Turkey has enormous
potential when it comes to capital growth. According to the
stat crunching portal Numbeo, prices per square meter in London
range from 677% to 862% higher than Istanbul.

Whereas London is already one of the world’s premier cities,
the Turkey 2023 vision plan aims to boost Istanbul to equal
status, and this gives real estate investors the edge. In 2016,
Barnes International also ranked Istanbul as the number one
city for potential.

۲: Liquidity Potential

Gone are the days, when we buy a house for life. Changing
lifestyle habits as well as work and career commitments means
selling a house is just as important as buying it. Studies say
current generations will own an average of three different
houses in the lifetime, hence buyers are also hedging their
bets when it comes to selling and that is where the Istanbul
real estate market steps up.

Turkey’s 2023 vision plan aims to increase the capita per
household to that of European countries. Combine this with
government incentives, as well as a growing population and the
buyers’ market is set to grow even more.

The process of buying a house in Turkey even for foreigners is
also quicker and easier than that of many other countries, with
cheap taxes and reduced costs. Keep the property for five
years, and you will be exempt from capital gains tax as well.

۳: Urban Renewal and Branded Lifestyle
Projects

One strong reason investing in Istanbul real estate is taking
off is the mass of new branded housing projects, particularly
occurring on the outskirts of the main city centre. Brand new
modern homes with modern architecture are being combined with a
range of social and community facilities to redefine the
concept of neighbourhoods in what is Turkey’s biggest and most
populated city.

Growing neighbourhoods like Kucukcekmece and Beylikduzu offer
all the benefits of city life with easy access to shopping,
nightlife and transport links. Yet they eliminate all the
hustle and bustle by sitting on the outskirts, therefore
providing more of a suburban feel than city dwelling.

While the shores of the Bosphorus and areas like Sisli still
remain the elite of Istanbul real estate markets,
neighbourhoods like Esenyurt and Buyukcekmece with these new
branded lifestyle projects are enabling the growing middle
class to become real estate investors for less than £100,000
for properties in Istanbul, especially now with the
current exchange rate between the Turkish lira and dollar that
edges everything to a buyers advantage.