There is no straightforward answer for What is good investment in Istanbul; however, this real estate guide can help you find hidden gems and avoid pitfalls in the Istanbul Real Estate Market.
Turkish real estate market offers many advantages for international investors and attracts people from all around. But, on the other hand, there are various pitfalls and red flags that you should avoid before buying an apartment in Turkey. This article provides general information about the Turkish real estate market, how to find your way in this maze, and mistakes you should avoid.
Before we start, it is better to step back and figure out why you should invest in Istanbul and Turkey overall. You can check out these two articles that explain “Why you should invest in Turkey” and “Why you should invest in Istanbul” in details. Knowing the advantages of Istanbul will help you understand What is Good Investment in Istanbul” much better.
Let us list the advantages of the Turkish Real Estate Market, especially in Istanbul:
- Strategic location – Between Europe and Asia transit highway.
- Strong Local demand – Young population, high demography,
- Substantial construction firms – Worldwide well know developer firms.
- Wide range of properties – Mid, average and high segment property options.
- Incentives for foreigners – Tax exemptions and Turkish Citizenship Investment.
- Safe & Secure investment system – Secure fund and real estate infrastructure system
Besides its advantages, Istanbul is a Unique real estate market compared to other cities with its demography and geography, differentiating it from other metropoles.
Key Facts that will help you find What is Good Investment in Istanbul
Fact1: Istanbul Real Estate Market is Dominated by Locals.
Locals dominate Istanbul Real Estate Market: Istanbul is a popular location for international real estate buyers and foreigners. That is a fact. However, the total share of foreigners in the market is no more than 5%.
You will probably end up dealing with a local when you are selling your property or renting. So to find your way in this property maze, you should need to understand local demand and where the market is going.
Fact2: Even in times the Turkish currency Lira is not performing well, the Turkish property market is strong and profitable.
Property in Istanbul is usually preferred as an investment against inflation hedge in Turkey. When you compare the property price index in Turkey, you can see a steady increase in property prices in USD. Moreover, this steady growth is driven by local demand. You can check out monthly house sales statistics from blog posts. (https://listingturkey.com/category/real-estate-market/)
Fact3: Istanbul is much bigger and more complex than it looks.
Istanbul may not seem significant or extended on the map; however, it hosts more than 16 million people today, making it a very dense urban city. So every district in Asia and Europe sides of Istanbul have different characteristics and specifications. Because of the facts above and the uniqueness of Istanbul, working with local experts and advisory services is crucial. So before starting your property search in Istanbul, determining these three steps can be helpful.
- Purpose of your investment
- Location of your investment
- The budget you want to allocate
Our local experts can provide detailed information about these constraints. But, of course, it is not fair to simplify a 360-advisory service with these three questions, as your real estate search gets more deep experience and expertise of your advisory service gets more critical. You can check out our services in detail from our services page.
We have listed all the good points and advantages of the Turkish real estate market. Now is the time to mention things you should avoid if you plan to buy an apartment in Istanbul. The quality of advisory services you receive the experience of the agent you deal with is crucial to reaching your goals in Istanbul Real Estate Market.
Since Istanbul is a characteristic city with unique features, it is crucial to deal with an agent following qualification.
- Deal with area or category-specific agents: Istanbul covers vast urban regions with various options. If your agent claims he can find “anything” in “any district of Istanbul.” It is a red flag. It is always better to find the right expertise according to your needs. That is why here in Listing Turkey, residential compound projects in Istanbul provide commercial properties through our business partners.
- Deal with local agents: It may not sound right at first sight; however, it will make sense; let me elaborate. First of all Turkish real estate market is dominated by locals. 95% of buyers are locals; there are 1 million houses needed in Istanbul every year. This local generated property demand is the key to understanding the local trends and mentality of local buyers. Once you know the movement, it will help you learn the accurate market value of the properties.
- Don’t make buying decisions based on irrational factors: It may sound obvious, but our job is to state facts so you can avoid these mistakes. These may sound like a good starting point; however, you should always fact-check these with local certificated experts before making any buying decisions. Try to avoid such mistakes; there are many; however, I have listed 3 of the most popular ones below.
- Your relative or a friend bought a specific apartment in a compound and recommended you to do the same.
- Your realtor or a tourism agency promotes Istanbul properties, and they claim that they can help you with your investment.
- A particular project is viral among investors in your country, and your local agent claims they can arrange a meeting with the project owner.
Whatever your motivation to invest is, you should investigate the location alternatives and get an advisory from local agents before making your investment. Turkish real estate market changing fast make sure that you make your decision based on updated and accurate information. The projects advised to you may not serve your investment purposes.
The Turkish real estate market developers do not involve the direct sales activities of their project. Instead, sales activities are managed by certificated and authorized real estate agents. Therefore, make sure that you are dealing with a certificated real estate agent before making a buying decision. That is why we list developers with all details and projects they have completed successfully. In addition, we have a youtube channel for further information for the developers and the investment options in Istanbul.
Knowledge is power, and we aim to provide transparently and help complete advisory services. For the full scope of our “Consulting & Advisory Services” and “Portfolio Management Advisory,” checks out our page.