Real estate sales statistics to foreigners in Turkey show that there is an increasing demand for buying new real estate compared to previous years, and the number of properties that foreigners have owned in Turkey in general and the vast majority in Istanbul is 6630 properties, whether for housing or investment.
While the share of Turkish citizens from the same month was 147,143 real estate, which is equivalent to approximately 22 times the percentage of foreign ownership, and from here we clearly find that successful real estate investment in Turkey in general and in Istanbul in particular exists due to the demand of local citizens for it.
Thus, obtaining Turkish citizenship is not the main reason for buying a property in Turkey, as some start-up companies are promoting, but there is a profitable and successful real estate investment, but it has precise and specific specifications. We will address some important points today and we talked about a large part of them in our previous articles:
Real estate investment guide in Istanbul and 2023 vision
Real estate prices in Istanbul
What type of property should I buy in Istanbul?
The lowest amount to invest in Turkey
bomonti residence by Rotana in Istanbul
Some may think that we are dealing with the issue of real estate investment in great detail and this is actually true. If you read the vast majority of our blogs, they deal, even in a simple way, to talk about real estate investment according to the topic of each blog, because our main specialty is real estate investment consultancy, even if the customer wants to buy a residential property Why should he be an investment for the future when he wants to sell it later, and if his request is a purely investment, then this is what we are the best at.
Today, we will discuss the future of real estate investment in Istanbul because it is the future that makes successful real estate investment if the investment in the present is properly studied based on experience extending from the past.
Today and every day we discuss real estate investment in Turkey. We are talking about real estate investment in Istanbul exactly because it is the best city for real estate investment without competition. It includes more than a quarter of Turkey’s population and includes the Bosphorus Strait and extends over two continents Asia and Europe. A specific season for demand in summer or winter for rent, purchase and sale, and therefore it is unrivaled as the best for real estate investment.
What are the points that guarantee real estate investment to be successful in the future?
1- Choose the right location
European Istanbul includes 25 regions, while Asian Istanbul includes 14 regions, and therefore we are talking about 39 regions. Which of them will you choose? And within each region there are dozens of main and sub-neighborhoods, which one would you choose? There are parts overlooking the sea or the Bosphorus, some overlooking the forests, and some without a view, which of them would you choose?
2- Comparing the purchase price with the expected selling price later
A quick judgment on the price of a property at first sight is definitely wrong. The cheaper price in the same area does not mean that the property is better, and also in some new projects the price per square meter is much higher than the average in the area, and therefore the investment opportunity in it is small.
The selling price later depends on a lot of other things, not just the purchase price:
3- What is the extent of the development of the region during the investment period?
Are there new metro lines that will be completed within the period of your investment? (Sometimes there are plans for new metro lines, but they need to be implemented for more than 8 years, and therefore the investor with the short plan will not benefit from these lines because he must sell before these lines are completed).
Are there new universities, schools or health centers?, How many shops are in the area and how much will it be when your investment period ends?
4- Timeline of the investment process
Buying a property under construction means that the investment often must be short-term in order to take full advantage of it, for example, the price of the project under construction increases every year 20% of the capital basis. If the project is delivered after two years, it means an increase of 40% and assuming the rental return is 4 % on the same property after handing it over. This means if the investment is terminated after two years, the investor will get 40% within two years and then he can exit to a new opportunity, but if he continues investing for 5 years, it means that the return will be 40% in the first two years and 12% during the remaining three years, and thus the total In five years it will be only 52%.
5- The mechanism of profit through investment
If you want an investment property, you must buy the cheapest property in the project with the highest return, regardless of the apartment area or the price per square meter in the project.
If you want to create a long-term investment plan, the rental return must be high so that you can benefit greatly.
If you want to make a short investment plan, the best is the projects under construction in strategic areas.
If you want to make a flexible investment plan without specifying a timetable, the property you bought must be in high demand and therefore easy to sell later when you want to finish your plan.
6- Choosing a property that has demand from the local market
As we noted at the beginning of the article that most of the real estate sold in Turkey is bought by local citizens and therefore it is better that your investment property is required by the local market and therefore the chance of resale will be at least 22 times higher when you want to end your investment.
7- Determining the proportion of risk in the investment
For those who wish to obtain a real estate investment that is as safe as possible, the center of Istanbul must be the best place in terms of safety, because no matter what changes occur in the future, the center will remain the center, and no matter how much urbanization extends in the east and west, the importance of the center will increase and the price per square meter in it and the demand will always remain high.
Some like to take risks, or even do not realize it, so they choose to buy a property very far from the center of Istanbul at a price that is not cheap, but in the hope that in the future this property will have a view of the new Istanbul Canal and thus looks like a view of the new Bosphorus in the city. In principle, the idea seems good, but there is Big risks in delaying the construction of the canal or not getting a real estate close to it, and we talked about this in detail previously: Investment projects near the new Istanbul Canal
Others still believe that Basin Express Street will be the first destination for businessmen in the near future (although this saying has been circulating for more than five years and so far there is no concrete evidence of the increasing importance of real estate in this place)
And he buys real estate at twice the price per square meter than its counterparts in terms of real value in the market, knowing that Ataturk Airport, which is located in the south of Basin Express Street, was closed with the opening of the new Istanbul Airport and will be transformed into a large park after many properties in Basin Express were sold on the basis of It is close to the airport.
8- Studying the future demand
It is considered one of the most important points that will achieve high investment returns, and it depends on collecting all the previous points together in the real estate that will be presented to the investor. The matter is not easy because the development of the Turkish real estate market is linked to the economic, social and even political conditions in Turkey. Therefore, those who want to provide real investment advice must: He is in-depth with the Turkish issue from all sides and has long experience in the Turkish real estate market, and this is what we offer today in our company through very valuable free consultations for our clients.
All you have to do is contact us and we will guide you to the best possible investment within your budget.
