Istanbul's furnished apartment rentals have been experiencing an unprecedented rise. Many global businesses, expats, and tourists are coming to the city for convenient stays. Move-in-ready accommodations in Istanbul have become a growing market priority. These properties command higher rents than their unfurnished counterparts.
How do furnished rentals in Istanbul perform as investments? Here's everything you need to know about yields, market dynamics, and income streams.
Is Renting Furnished Flats in Istanbul Profitable?
Furnished rentals in Istanbul are seeing strong interest from various tenants. Tourists, business travelers, expats and students all seek these properties. While each group has its own reasoning, they are all willing to pay a premium.
Furnished apartments rent for much more than unfurnished ones. This is especially true in popular areas. Furnished properties may need a higher initial investment. However, average furnished rental returns in Istanbul are usually better.
Furnished properties maintain high occupancy rates, thanks to the tenant diversity. With Istanbul's rising global presence in business and tourism, they seldom stay empty.
These properties also benefit from strong capital appreciation. The city is drawing more international businesses and residents. So, the demand for fully furnished apartments for rent in Istanbul is rising.
Furnished apartments in Istanbul’s rental market offer more monthly income and better long-term appreciation than traditional rentals.
Short-term vs Long-term Furnished Rentals in Istanbul
Furnished short-term rentals in Istanbul dominate the market. But long-term furnished rentals have their perks too. Let's explore both options. This will help you choose between short-term Airbnb and long-term rentals for your investment goals.
Short-Term Furnished Rentals
Short-term rentals typically range from a few days to several months. It is generally considered anything under 100 days in Turkey.
They command much higher daily rates. Short-term furnished apartments typically see an average of 55% occupancy rates. This rate may be higher in some neighborhoods.
These properties mainly serve tourists. The peak season usually lasts from April to October. Platforms like Airbnb and Booking.com lead the market. However, direct rentals are also available. Airbnb furnished apartments in Istanbul are particularly popular with international visitors.
Additionally, short-term rentals often need more attentive management.
Long-Term Furnished Rentals
Long-term leases usually run over 6 months. Tenants typically seek stability rather than flexibility.
While daily rates are lower, they offer consistent occupancy. Furnished long-term rentals in Istanbul maintain occupancy rates above 90% in prime districts.
They cater to a wide range of tenants. Expats, professionals, families moving for work, and students seeking long stays in Istanbul all favor these options.
Long-term properties earn 10-30% more monthly rental income in Istanbul than unfurnished ones.
They also need less frequent management compared to short-term rentals. And they provide more predictable cash flow.
How do short-term and long-term furnished rentals yield in Istanbul compare?
Short-term furnished properties provide a rental yield of 7% to 11.7%. However, they require more management effort. Long-term furnished rentals in Istanbul yield about 4% to 6%. In emerging districts, yields can reach up to 8%. They also require minimal day-to-day involvement.
Understanding seasonal rental demand in Istanbul apartments presents strategic opportunities for smart investors. Istanbul furnished rentals' low season income (December-February) actually strengthens from corporate relocations seeking stable, long-term arrangements.
Peak season (April-October) drives maximum short-term rates as tourist activity surges. This seasonal pattern allows investors to optimize their strategy year-round for consistent returns.
Best Areas in Istanbul for Furnished Rentals
Where to Invest: Short-Term Rentals
Fatih: 
A touristic area with historical attractions and UNESCO World Heritage sites. Particularly, Sultanahmet draws millions of visitors annually.
Beyoğlu: The cultural heart of Istanbul, Beyoğlu has a vibrant arts and entertainment scene. Transport links, cultural attractions, and nightlife are easily accessible. Additionally, the walkability and authentic atmosphere make it highly appealing. Galata, Karaköy, and Cihangir are particularly sought-after neighborhoods.
Where to Invest: Long-Term Rentals
Şişli: It is a central district with excellent transportation and amenities. Bomonti is especially popular with foreign businesses. Creatives, professionals, and corporate relocations favor this area.
Kadıköy: A vibrant cultural hub with ferry and metro access. Kadıköy Moda is very popular among young people, professionals, and expats.
Beşiktaş: This prestigious district is home to major universities and business centers. It serves a variety of tenants. These include university students and corporate professionals looking for central spots.
Emerging Opportunities
Kağıthane: This district is centrally located near Şişli, Maslak, and Levent. It has great potential for both long-term and short-term furnished properties. It also provides great chances to invest in serviced apartments because of ongoing urban growth.
Ataşehir: This is Istanbul's financial hub. It draws many companies to relocate here. It is rapidly gaining recognition as a long-term rental hotspot. Families also prefer this area for its new residential developments and modern amenities.
Legal and Tax Rules for Furnished Rentals in Istanbul
Furnished property taxation in Istanbul, Turkey, differs based on the activity type. These properties can be seen as commercial activities. This is especially true for short-term rentals or those offering extra services.
Short-term rentals are treated as tourism businesses. Investors need to get a license per legal regulations for the short-term furnished rentals in Istanbul.
Additionally, furniture and equipment can qualify for tax depreciation deductions. This can be a significant advantage for reducing your taxable rental income. Investors can deduct furniture costs from rental profits. This can boost returns over several years.
How to Choose the Right Property for Furnished Rentals
Success in furnished rentals starts with selecting the right property for your target market.
Location is crucial. Having transportation nearby is essential for all tenant types. Additionally, choosing the right neighborhood according to your strategy maximizes occupancy.
Short-term furnished apartments should be near walkable attractions and cultural sites. Tourists often look for these places. Meanwhile, long-term properties perform better in business districts with corporate appeal.
Furnishing is also key to your success. It is best to choose durable pieces that withstand frequent use. If you want to attract different tenants, use neutral colors and classic designs. They appeal to many people.
Technological integration is increasingly important. A reliable and fast internet connection is non-negotiable in today's market. Functional furniture can also enhance appeal for students and digital nomads. Luxury furnished apartments for rent in Istanbul command high prices. They appeal to business professionals and tourists.
Smart systems and energy-efficient appliances are becoming standard expectations. They reduce operating costs while attracting tech-savvy tenants.
Your Path to Furnished Rental Success in Istanbul
Renting furnished properties in Istanbul can be highly profitable with the right strategy. Whether you choose short-term properties in tourist hotspots or long-term rentals in business districts, success comes down to matching your property to the right tenant market.
High yields, high demand from international tenants, and strong capital appreciation make Istanbul furnished property investment an attractive opportunity in one of Europe's growing rental markets.
The key is choosing wisely. Understanding your target market will determine your success.
Istanbul Homes® is here to guide you through your investment journey, from finding the perfect property for your goals to maximizing your returns.
