Table of Contents
Investing in Istanbul and Vision 2023
Investment is the percentage that attracts investors in any field and place, with the increase in investment return, more investors turn to the source of this attractive investment.
The field of investment and the place of investment in which the investment will take place are two issues of great importance, and of course we will not neglect the time frame for the investment process, whether in the real estate field or otherwise, because the time frame is one of the most important factors affecting the success of the investment.
We are talking now about a country like Turkey whose economy occupies 19 globally and has future plans in 2023 to become one of the ten strongest economies in the world. When the investor sees that the country in which he wants to invest in its economy is strong, he will see that the investment is safe and this is the first required indicator.
The real estate field in Turkey in general and in Istanbul in particular is one of the top 3 sectors in Turkey, because it is one of the most important sectors on which the Turkish economy depends to achieve its progressive growth, the Turkish real estate market is huge and there are various options.
The Turkish government has provided many facilities to obtain Turkish citizenship by purchasing a property or a group of real estate on the condition that it be kept for a period of 3 years. This is the most important amendment to the nationality law, which attracted thousands of investors from all countries of the world who wish to obtain Turkish citizenship and invest as well.
The first factor influencing the choice of property location and type is the time frame for the investment process, because investors wishing to obtain Turkish citizenship and invest the property and sell it after 3 years must choose a property location that is easy to sell after the specified period has passed and to obtain the required profits.
As for the investors who want to invest for a long-term period, here we must talk about a different investment, in both cases the location of the property is the most important for the beginning of the real estate ownership process in Turkey.
What is the best real estate investment area in Istanbul?
The city of Istanbul is distinguished by its central strategic location, as it connects the Asian section and the European section with three bridges that pass over the Bosphorus, in addition to it is bordered on the north by the Black Sea and on the south by the Sea of Marmara.
Istanbul has 3 airports, one of which is the largest in the world, with a runway capable of accommodating 120 flights every hour, and it has plans to expand it to accommodate about 200 million passengers annually when it is fully completed.
We can summarize Turkey’s vision for 2023 as follows:
+ That the unemployment rate does not exceed 5%
+ To become the Turkish economy among the 10 best in the world
+ The total salary should reach 25,000 USD annually
+ US $ 500 billion worth of exports annually
+ $ 1 trillion in foreign trade
+ $ 2 trillion US dollars in total domestic production
All that was mentioned in the past is important to clarify the eligibility of Turkey in general, and Istanbul in particular, to be a promising investment environment.
Now we will explain the regions of Istanbul through the following paragraphs:
The first sector includes Maslak, Sisli, Beyoglu, Zeytinburnu and Bakirkoy.
+ Maslak area:
+ A lively, upscale and modern area
+ Real estate prices in it are constantly increasing
+ Most of its views are over Belgrade forests and the Bosphorus
+ Suitable for budgets starting at $ 190,000
+ Sisli region:
+ A fully developed and elegant area
+ There is a very limited number of new projects
+ It is centrally located and suitable for large companies
+ Suitable for budgets above $ 110,000 for buildings and over $ 220,000 for new high-rise towers.
+ Beyoglu District
+ Its central location and antique area
+ Dozens of high-end hotels
+ It includes the famous Taksim Square
+ Suitable for a budget of $ 250k
+ Zeytinburnu and Bakrikoy coastal areas:
+ Upscale and modern buildings
+ Charming views of the sea, the Marmara Sea
+ The house is 0 meters away from the sea
+ Suitable for budgets starting at $ 270,000
The second sector: Basaksehir district, Basin Express and Kucukcekmece district
+ Basaksehir area
+ A modern area, next to the city center, and close to Istanbul Airport
+ Conservative in nature
+ Predominantly family housing
+ Suitable for budgets starting at $ 100,000
+ Basin Express Street
It is the street that connects the two highways, the E5 and the TEM, which is the road that has become famous in the recent period, and there are many hotels and residential projects in this street:
+ Close to the highway
+ It has ready projects and under construction projects
+ Known as a meeting place for businessmen and international luxury hotels
+ Suitable for budgets starting at $ 75,000
The third sector: We will talk in this sector about the suburbs of Istanbul, which are Avcilar, Bahcesehir, Beylikduzu, Buyukcekmece and Esenyurt
1- Avcilar area
+ A coastal area located between Lake Kucukcekmece and the Sea of Marmara
+ Divides it into two sides by the E5, which includes the most important means of transportation in Istanbul, the Metrobus
+ Suitable for budgets starting at $ 70,000
2- Bahcesehir area
+ This region is famous for its tranquility and green spaces, which makes it one of the most important summer areas
+ Modern urban design
+ Close to Basaksehir and the new Istanbul airport
+ Suitable for budgets starting at $ 70,000
3- Beylikduzu area
+ Quiet area, close to the E5 highway, and important transportation links
+ It is bounded on the south by the Sea of Marmara
+ Suitable for budgets starting at $ 75,000
4- Esenyurt area
+ A lively area with many markets, shops and squares
+ It includes large residential complexes with a huge number of housing units, up to 5000 housing units in one complex in some complexes
+ It is characterized by its low prices compared to the high prices in Istanbul
+ Suitable for budgets starting at $ 30,000
5- Buyukcekmece district
+ It is characterized by its calm, fresh and clean air because it is the farthest area from the center of Istanbul
+ Projects include direct sea views at reasonable prices
+ Suitable for summer
+ Suitable for budgets starting at $ 80k
Where can you invest in Istanbul?
This is a very important question because where you can invest is completely different from where you can buy a property in Istanbul, it is only clear to us through customer inquiries about buying an investment property or buying a residential property that the difference is not clear to them, so let’s assume that the customer asked where I can Buying a property in Istanbul for the purpose of housing here, the answer will be that any of the areas we mentioned above are suitable for purchase and each has its own advantages in terms of geographical location, proximity to transportation, proximity to the coast, universities, etc.
As for supposing that another client asked where I can invest in Istanbul, our answer here will be that the closer we are to the Istanbul center, which we have talked about in the first sector, the more the investment will be feasible, and these are for certain reasons:
+ The investment is subject to a specific time, as I mentioned before that the closer to the Istanbul center, the easier it will be to sell it and with additional profits.
+ New projects in the center of Istanbul are limited and the demand for them will increase, either now or in the future, and thus the profit rate will be high
+ The project under construction is highly profitable for long-term investment
+ The rental return for projects that are in the center of Istanbul is higher for those that are further from its center
And there are many detailed reasons that explain why the investor should acquire real estate in the center of Istanbul, to know all the details, you can contact us
Why should we invest in Istanbul?
To realize the benefits of investing in Istanbul, it must be compared to other cities in terms of return on investment and taxes.
Calculate ROI in Istanbul:
Many customers make the mistake of calculating the correct return on investment by calculating the annual income of the property and neglecting the price inflation or its decline when selling, to clarify this, we will know the return on real estate investment in Istanbul, and then we give an example:
ROI = Annual rental return + capital inflation on sale
The mistake that many clients make who want to invest in non-investment areas such as Esenyurt for example is that they focus on the annual rental return from the above equation without paying attention to the capital inflation or its decline when selling,
Many promotional offers in the market promise customers a rental guarantee that sometimes reaches 10% annually for two years or 8% annually for three years. Thus the investor thinks that after 3 years he will collect 24% of his capital and this is true, but when reselling the property, he may not be able If he sells it at a price higher than what he bought, on the contrary, the value of his property is less than what he bought, and this makes the real estate investment a loser, we will give an example with the numbers:
If a customer buys a property worth $ 100 thousand with a rental return of 8% for a period of 3 years and after this time the investor wants to terminate his investment and sell his property after obtaining Turkish citizenship, then he finds that the value of his property in the market is equivalent to $ 70 thousand, and thus be:
The amount of profit = 8% 3X years – the rate of capital decline of the property
Profit = (3 x $ 8,000 – $ 30,000) = (-6,000 $)
ROI = (($ 94,000-$ 100,000) / $ 100,000) X100 = -6%
Through this example, we can see that despite the high rental return, the investment was a loser
But when choosing a correct location for investment, the equation is as follows:
If a customer purchases a property worth $ 300,000 in the center of Istanbul, and thus the natural rental yield without a rental guarantee will not be less than 5% annually, and after three years, if the investor wants to resell the property, the property will achieve, due to its location, a capital gain of no less than 15 % During this period and thus the equation becomes:
The amount of profit = 5% X 3 years + capital inflation for the property
Profit = (3 X $ 15,000 + $ 45,000) = (+ $ 90,000)
ROI = (($ 390,000-$ 300,000) / $ 300,000) X 100 = 30%
We have another exclusive formula with a return of more than 55% within three years for our company’s clients. If you want to see it, write your information to contact you.
As for real estate taxes in Istanbul, they are without a competitor, the lowest compared to competing European countries such as France, Italy, Germany and Britain, in Istanbul there is no tax on capital gain when selling after five years and there is no tax on the net value of the property, as in Spain, Italy and France, also the value tax The added value is less than the rest of Europe, and it is sometimes non-existent in Turkey.
When is the ideal time to invest in Istanbul?
The best time to invest in Istanbul is now, because the real estate market in Istanbul is a dynamic market and not seasonal, meaning that you can invest in it throughout the whole year.
The real estate market in the period of the Corona Covid-19 pandemic has developed itself, so the customer can buy online, that is, via the Internet.
Today, we see that there are more discounts that the customer can receive in the Covid-19 period, as soon as the Corona pandemic ends, the value ratio of the property can rise, but as I mentioned at the beginning that the Turkish real estate market is permanent and not seasonal.
What can we invest in Istanbul?
One of the most successful types of investment in Istanbul is real estate investment because it achieves high profits in a specific and short-term period.
The Turkish government has facilitated obtaining its citizenship by purchasing a property or group totaling $ 250,000 only, and it has subsequently emerged that the real estate market is one of the most important investments in Turkey.
The real estate market is a huge market in which there are many options such as apartments, residential complexes, villas, shops, and lands, meaning the investor can choose what he wants and at the right price for him and of course the right place for investment.