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It is known that real estate investment in the center of any city in the world is the most effective and beneficial, especially if we speak for the foreign investor who has experience, no matter how deep, will not be equal to the experience of the local investor.
Istanbul is a diverse city, large and growing very rapidly, so that a large number of its indigenous citizens did not visit all its areas and did not have the opportunity to get to know its 39 municipalities, of which the European side of Istanbul includes 25 of them, and the remaining 14 municipalities are located in the Asian side of Istanbul.
So, what is the Istanbul center that is really suitable for investment?
And how can a foreign investor choose his investment property in the center correctly?
At the time of writing this article, the prices of new investment properties in Sisli towers, for example, start from about $260.000. Should a foreign investor have this amount to make a successful investment in Istanbul?
What is the suitable center of Istanbul for investment, according to popular opinion?
Let’s start immediately by talking about the appropriate center for investment in Istanbul:
If we asked any foreign investor with a good background about Istanbul, what is the center of Istanbul, he would directly answer the areas of Beyoglu, which includes Taksim Square and Besiktas, where Dolmabahce Palace, Levent and Sisli located, which includes Nisantasi, high towers, and Maslak where Vadi Istanbul area and Maslak projects overlooking the Bosphorus and Belgrade forests.
If we ask about the Asian side, the answer will be in Kadikoy, Uskudar and Beykoz with views of the Bosphorus.
And this answer is correct, and we can call it the main center of Istanbul, but today with the rise in real estate prices and construction costs, the minimum required to invest in these areas above is approximately $260.0000 for one-room property, and if we want to talk about a slightly higher level of real estate in the same areas, we can say that we need $450.000 to acquire a one-room property in a central strategic location in a modern full-service complex.
But if we want to talk about a high-quality real estate, we are talking about around $650.000, and finally, if we talk about Besiktas and a direct view of the Bosphorus for a relatively new property, we are talking about about a million dollars (according to the available offers).
These prices are not offers that we offer to be judged as appropriate or high, rather, it is the real market prices.
So, the prices in the traditional center of Istanbul today do not suit a large class of medium investors. Here we ask, is investing in the center of Istanbul today suitable only for large investors with high budgets?
In fact, looking at the transportation map in Istanbul below, we can say that the traditional center of Istanbul is suitable for really high budgets, but there are many areas near the center suitable for medium budgets, and we can technically call them the extension of the center of Istanbul, so what are these areas and what are their specifications?
In the same way, new and fast metro and tramway lines have made access to the central areas easy, and this is exactly what a renter who works in a central area where he cannot afford the rent, such as Nisantasi or Levent, but can afford the rent in the extension areas of the center such as Kagithane, Topkapi and Eyup, as long as there are fast means of transportation, no matter how crowded there is, they can take you to the heart of Istanbul within minutes.
At the outset, we can say that the traditional areas of the center were classified as central because they have the following characteristics:
- Close to the tourist areas and the Bosphorus, and therefore the demand is high for tourist rental and resale later.
- Integrated services of educational, medical, service and entertainment centers that are easily accessible
- A high level of social life, whether in terms of residential complexes, their services, and advantages, or through the surrounding markets.
All these reasons make the traditional Istanbul real estate a successful investment, as it does not lose its value and its returns are constantly growing.
But today, with the expansion of the transportation map, its diversity, and its high efficiency, at any hour of peak hours, day or night, can we find successful central investment properties with advantages a little less than the traditional central areas, but with more appropriate budgets starting from $130.000 for one-room apartment?
15 years ago, it took more than two hours to reach from the central Sisli district to western Istanbul, Buyukcekmece district, which is about 40 km away due to the lack of transportation and the roads being unpaved in the present way. Today, this same distance can be covered within 55 minutes by metrobus.
Also, for example, a project in Topkapi area cannot be considered as not the center of Istanbul as long as it is located:
Near the tramway through which you can reach Sultanahmet in less than 15 minutes.
Near the metro that takes you to Taksim Square in 20 minutes.
Near the metrobus that connects you to Asian Istanbul within 30 minutes.
Also, some projects in Kagithane and Eyup have great advantages near transportation, which facilitates access to the heart of Istanbul within a few minutes and can be considered an extension of the center of Istanbul at prices lower than the prices of the center.
How can a foreign investor choose his investment property in the center correctly?
As we explained earlier, the traditional center of Istanbul is the basis for real estate investment, but the development of transportation infrastructure in Istanbul has brought the areas adjacent to the center significantly closer, so we have the following:
If the investor has a sufficient budget to obtain an investment property in the center of Istanbul, we can guide him to the best suitable projects for his request.
If he has a budget of less than $260.000, we can guide him to the areas that represent the extension of the center and are investment at the same time for some projects in them.
We always emphasize the idea that the best property is not necessarily the cheapest property, and this is a mistake many foreign investors make when choosing cheap properties in the center of Istanbul, as they do not achieve a high rental return on the one hand, and most importantly, reselling them is difficult and often causes a loss of capital. basic.
You can avoid this risk by relying on an experienced real estate consultant in the real estate market who can provide free consultations based on long experience in the real estate field.