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2 July 2024 / Properties

Buying Property in Istanbul

When considering real estate investments in Turkey, many clients ask, "Is buying property in Istanbul a good investment? " The Istanbul property market is undoubtedly Turkey's star performer when attracting foreign investors from all corners of the globe. Historically, the central city has also been the country's number one destination for domestic property sales, even overtaking the Mediterranean region of Antalya as Turkey's most popular destination for foreign property buyers.

While real estate prices are the highest in the country, foreign buyers flock to invest in the prime locations and, in some cases, apply for the Turkish citizenship real estate scheme. Residential properties overtake commercial properties as the main attraction, and aside from property ownership, potential buyers also tap into numerous other lifestyle benefits simultaneously. But what are the exact reasons why Turkey's most significant city commands such fame and admiration? Why do international investors flock from Europe, the USA, Asia, and the Middle East? Let's find out.

Why Buying Property in Istanbul is a Good Investment

Istanbul Property Investment

1: Potential for Capital Appreciation on the Purchase Price

Istanbul's reputation is solid. Hence, buyers enjoy the potential for capital appreciation if they consider this a mid-to-long-term investment. Remember, Istanbul is the beating heart of Turkey, not just for investment property but for every aspect of life, such as education, tourism, business, finance, health, art, and culture. Many foreign nationals flock to the city to work and retire, and out of all the Turkish cities, Istanbul has another advantage in that it sits on the cusp between Europe and Asia.

The strategic location is also next to the strategic Bosphorus straits, which have seen many empires rise and fall for power of the waterway. While property is one option for investors, many international and Turkish banks and companies base their headquarters in Istanbul. One look at buildings in business districts like Levent, and house buyers will see how much power and direct investment money is pumped into this city. Buying into the real estate sector easily builds generational wealth on property values.

2: Liquidity Potential Thanks to Constant Demand

Like other real estate markets, the Turkish property market relies on liquidity potential, which is sky-high in Istanbul. Regardless of property prices, any suitable property investment will feature high liquidity. The market attracts international buyers all year round and is also the top-performing domestic market, according to Turkstat, the country's statistical data company. For investors, good liquidity is not a choice but an essential part of foreign investment. Thanks to the year-round market and international and domestic buyers, Istanbul delivers good liquidity wrapped with a pretty bow.

3: Branded Construction Projects on the Property Market

While Istanbul has elite property markets, much of the property in demand by real estate investors sits in outskirt districts, where mass development, public transport, and infrastructure investments have changed the landscape. Bring up any property search to see villas and apartments for sale in areas like Buyukcekmece and Beylikduzu. These are just two areas where construction projects appeal to buyers because, in many cases, they offer discounts for cash purchases and long-term interest-free payment plans.

These developments also differ in that construction companies have steered away from the concrete block look to build attractive lifestyle residences with gardens and onsite amenities. These investment opportunities have attracted Turkish and foreign buyers simply because the location allows the best urban and rural living. Whether overseas buyers seek permanent residence or just somewhere to build their portfolio, the lifestyle residences of Istanbul are an attractive option.

4: Citizenship by Investment Program for Foreign Investors

The Turkish citizenship program says that anyone with a clean criminal record who purchases a minimum investment of $400,000 in property and pledges to keep it for at least three years can apply for the same rights to live, work, and study as a Turkish citizen. In other words, they get a permanent residence permit.

Also known as a golden visa, the Turkish citizenship program through an investment program is one of the world's cheapest and quickest processes. Many Middle Eastern investors have applied to this program since it allows applicants to maintain dual nationality and includes their immediate family members. The affordable prices of properties for sale make this a double golden egg for investors, often put off by the six-figure digits of other countries. (Find out more here.)

5: Luxury Apartments and Villas That Define Style

Although Istanbul has a market of average house prices, it also excels in luxury homes that can easily outrank the likes seen in America and France. The rich Bosphorus history showcases Istanbul's yali mansions, dating from the Ottoman Empire. Their cultural heritage is so important, hence the official protected status, and when they do go on sale, the price per square meter is often POD; therefore, if you must ask, you can't afford it.

Head to the business districts, where tall skyscrapers dominate the landscapes, to find many penthouse luxury residences. Like the equivalent in Manhattan, these residences offer concierge, chef, and reception services, along with amazing views. So, if you have cash to splash, forget average prices because luxury real estate in Istanbul highlights the ultimate in easy lifestyles. (Luxury homes in Istanbul)

6: Wide Choice of Locations for Property Purchases

From famous districts like Sultanahmet with the Hagia Sophia and Topkapi Palace to lesser-known enclaves that remain a well-kept secret, Istanbul has 39 official districts from which to choose. Rental properties are popular in the heart of the city, but head to Asian Istanbul to find old types of properties in nostalgic Ottoman quarters.

While we occasionally get enquiries for commercial spaces, many are for homes in European neighbourhoods; although 14 districts do sit on the Asian side, which is seeing more interest lately. So, whether you want to be near historic sites, enjoy city views, or be in the heart of Istanbul's city centre, you will find what you want.

Istanbul Euro[pean Property

7: Bridges, Airports, Tunnels and Highways - The Excellent Transport Network

Istanbul's city center’s advantageous location makes it a bustling city, so it needs an impressive transport network. As home to one of the world's busiest airports, real estate buyers love the air travel sector, which connects them globally and domestically with hundreds of destinations.

The new Istanbul airport replaced the outdated Ataturk airport and once dubbed the world's most excellent mega project, has excelled in air travel and become a global superstar. Add to this the famous Bosphorus bridges connecting Europe and Asia, and soon, you will see why commuters have more choices of locations. The Eurasia tunnel also crosses beneath the Bosphorus Strait, and the metro line developed in the outskirts districts ensures connectivity no matter where you go in Istanbul.

8: Scenic Landscapes

You might be surprised to learn Istanbul, an attractive destination, captures the essence of Türkiye, both past and present. While city living is supreme in districts like Beyoglu, small Bosphorus neighbourhoods, which eventually lead out to the Black Sea, exist without fast-paced city vibes. Even standing on the Bosphorus shores leads to a wide selection of beautiful sceneries that have graced international travel magazines. In the bustling metropolis, one can spot architecture of bygone eras that portray Ottoman vibes, while over on Prince's Island, panoramic views are everywhere you look.

9: Modern and Old Architecture Styles and Building Regulations

Putting aside investment opportunities, Istanbul collectively highlights stylish architecture, both past and present. Looking at the extensive list of famous Turkish architects based in Istanbul, you will realise that the city is a canvas for their work. Any good comprehensive guide will, of course, talk about landmarks like the Blue Mosque. Still, architects have poured their heart and soul into designing stylish but functional living spaces for modern apartments.

Housing prices are also in the middle range, ensuring that the average Istanbul family can invest in them. But another property type with exceptional architecture is the old Ottoman detached villas of the Princes Islands. Head to the central location of Istiklal Avenue to spot 18th and 19th-century art nouveau real estate properties that line both sides. Don't think Istanbul is all about apartment living, though, because there are villas for sale that command high rental demand.

The stylish shopping centres are another canvas masterpiece of Istanbul's architecture. Gone are the days of shabby building work because legal requirements regarding the construction and development of properties are strict. This highlighted destination for property investment insists on stage inspections and completion checks before any building receives the right to exist.

Understanding the Istanbul Property Market

Market Overview: Istanbul's property market has significantly grown in recent years, driven by urbanisation, population growth, and foreign investment. The city offers diverse properties, from historic homes in Sultanahmet to modern apartments in Beyoglu and luxury villas along the Bosphorus.

Legal Framework: Foreigners can freely buy property in Türkiye, including Istanbul, under certain conditions. The reciprocity principle allows citizens of most countries to buy property in Türkiye on a freehold basis of up to 30 hectares.

Property Types: Istanbul offers several types of properties, including apartments (daire), villas (villas), and commercial real estate (ticari gayrimenkul). Each type has advantages and considerations regarding investment potential and legal requirements.

Residency and Citizenship: Apartment owners can use their property for 90 days out of 180 days if they stay on a tourist visa. However, they can apply for longer residency or buy property to fulfil the criteria for citizenship by investment program.

How to Buy Property in Istanbul

Istanbul Marina Property

Research and Planning: Define your investment goals and the intended purpose of your investment, whether it be personal use, rental income, or simply capital appreciation. Decide your budget and factor in taxes, fees, and legal expenses.

Choose the Right Location: Istanbul is vast and diverse, so choose a neighbourhood that fits your lifestyle and investment goals. Popular areas include Besiktas, Kadikoy, and Maslak for urban living and Bebek and Sariyer for luxury properties. To know more about neighbourhoods, contact our Istanbul agents today, who can also highlight neighbourhoods and potential properties that stand out in them.

Legal Due Diligence: Hire a reputable local lawyer to handle legal aspects and check the title deeds. We have already done our due diligence, but a lawyer will also advocate for you during the process and stand as a POA if you cannot sign the deeds in person.

Financing Options: Some people consider financing the purchase through Turkish banks, but foreigners' interest rates can be hefty. Evaluate currency risks and consider financing options in your home country.

Property Inspection and Evaluation: Hire a qualified surveyor to inspect the property for structural issues and compliance with building regulations. Evaluate the property's market value and potential rental income. Also, local neighbourhoods should be assessed for transport links and daily amenities like shops.

Sales Contract and Title Deed (Tapu): Sign a sales contract (Satis Sozlesmesi) outlining all terms and conditions. Transfer ownership through the Tapu (title deed) process, usually facilitated by a notary public.

Ongoing Expenses: If you buy an apartment in a building with more than six units, you will need to pay for an apartment aidet. You should also arrange for other monthly and yearly fees like electricity, gas, and water.

Investment Potential: Istanbul offers competitive rental yields, especially in central areas and tourist hotspots. Rental income is subject to income tax, typically around 10%. Strategic investments in emerging regions can yield higher returns.

Use Our Property Buying Services in Istanbul

As established real estate agents in Istanbul city centre, we stand by to offer our services to property buyers. To know more about the citizenship by property investment program or your real estate options, we can answer those questions to prove that buying property in Istanbul is a good investment. Start your property purchase by browsing our portfolio of villas and apartments in European and Asian Istanbul.

Each listing contains everything to know, including the square meter, cost, location, and additional home features like city views. Just complete the contact form to find out more information via email or to arrange viewings. Alternatively, contact us today for more information about investing in Istanbul, or see the following article for more information about this beautiful city.

Where to Live in Istanbul: Beautiful Istanbul, a fantastic city with an intriguing cultural heritage, is the beating heart of Turkey. While Istanbul has a few popular areas with travellers, many spots also make it the perfect place to live. Rather than think of Istanbul as a single city, it is helpful to know it is separated into 39 districts, each offering something unique. Furthermore, these 39 districts are spread into the European and Asian continents, and deciding which side to live on will help narrow your choices.

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