As Turkey’s largest and most populated city, it is no surprise the Istanbul real estate investment market is full of activity. Every day, hundreds of deals take place, and title deeds swap hands, both in the domestic housing industry and for sales to foreigners. In fact, it is the most popular market for both foreigners and Turks as seen in high stats over the years.
Domestic and Foreign Sales Stats
Official government statistics by Turk Stat, the country’s National Institute of Statistics, said in 2013, Istanbul was the second most popular place for foreigners to buy property in Turkey with 2,447 sales.
However, the city picked up popularity in 2015, and so far, this year, foreigners have bought 7895 houses making it the most popular destination. In September 2018, sales jumped by over 151% as foreigners flocked to take advantage of the lucrative exchange rate and new rules for citizenship investment. For domestic sales, in 2017, just over 238.000 Turks bought the property in Istanbul.
So, with the housing market continually turning over, what do investors need to know if they want to buy real estate with much potential for capital appreciation?
Istanbul Real Estate Investment Advice
1: Go Local
Istanbul has 39 districts covering just over 1500 square kilometers. Within each area, a variety of neighborhoods each with different characteristics and unique selling points, provide buyers with even more choice.
Some are known for apartment living while others boast of luxury villa lifestyles. Buy-to-let investors should also look at tourism hubs or properties with excellent transport links for business commuters. Whether they are family-friendly, tourism and nightlife hubs, populated or off the beaten track, buyers should look closely. Know your reasons for buying and then find the community that suits you most. (Read about popular neighborhoods.)
2: Future Projects and Emerging Neighbourhoods
Part of the popularity of the Istanbul property market is that the city is in the middle of reinventing itself. New transport links, shopping facilities, tourism attractions, green parks, and mega-projects like the new airport and planned canal route are just a fraction of the massive changes taking place in Turkey’s largest city.
These factors all have a knock-on effect on long-term appreciation and liquidity. At Istanbul Homes, sales staff live locally and have in-depth knowledge of all neighborhoods. They stay abreast of news and developments affecting the housing market, so can answer questions and give first-hand advice. We also recommend using our viewing trip services for a personalized buying experience.
3: Exchange Rates and Extra Costs
A new Turkish law says all property transactions must be done in Turkish lira. So, when you change your currency, you want the best exchange rate possible. Banks offer this, but specialized money transfer services have a better exchange rate. Depending on the price of the property you buy, there is potential to save hundreds of dollars. Another factor determining how much you spend is the extra costs such as tax, translators, and lawyers.
4: Funding Your Purchase
Most people looking for funds go to the bank for a mortgage. However, interest rates often drive up the cost of your purchase. We sell a large choice of properties with long-term, interest-free payment plans. Ranging from 1 to 5 years, it is another way to save money and cut down the costs.
5: After You’ve Signed for the Deeds
Buying property in Turkey for the first time is a daunting experience. However, the good news is the system is a lot less complicated than in other countries.
We also offer all services from showing your properties to helping with other tasks such as home management, utility change of names or registration and connection, residency and citizenship applications, and much more.
The purpose of offering these services is to make sure your Istanbul real estate investment goes smoothly and brings you much joy for the future.
You may also like to read…
Buying off-plan property in Turkey: Our guide, tips, and advice for buying an off-plan home.
Alternatively, contact us today to discuss an investment in the Turkish real estate market and how we can help you do that.