Why have Istanbul Property Prices risen so much?
Many of our clients have recently asked why Istanbul property prices have risen so much. This is an excellent question to ask. With prices rising as much as 50% in some districts compared to three years ago, pre-COVID, there is a drastic difference. Indeed, the Istanbul housing market has changed dramatically in terms of housing prices, capital appreciation and investment. We will answer with points specific to Istanbul's housing market; however, it is worth noting other places in Turkey also saw dramatic house price increases.
In addition, other countries reported rising house prices. By the end of 2021, newspaper reports said global house prices rose at the fastest rate for 17 years. Luxembourg, Turkey, New Zealand, Canada, Demark and Russia were countries with significant increases in house prices. So global events touched every housing market around the world. Add that to countrywide effects in Turkey, and it is easy to see why house prices in Istanbul rose. But let's look at aspects affecting Turkey's housing market and Istanbul specifically.
About Istanbul's Housing Prices
1: Significance of Istanbul
The first mistake most foreign buyers make is underestimating Istanbul's significance. This city, home to roughly 18 million people, is not Turkey's capital, yet it is the hub. Many experts say that if Istanbul were to fall, Turkey would collapse. Likewise, when there is an election in Turkey, most parties go after Istanbul because the city secures political weight. Istanbul is the hub of finance, business, economy, tourism, education, and health. Nothing happens in Turkey without some connection to Istanbul.
2: Istanbul is More Than Taksim
The other mistake people make is geography. The most popular areas in Istanbul are Taksim and Beyoglu, and Sultanahmet. Yet, there are 39 official districts covering two continents; the Asian parts and the European. The city is home to the Bosphorus, one of the world's most essential straits of water, in addition to the golden horn, and Marmara and Black Seas. Heading to the far northwest, the province borders Bulgaria. The geographical importance of Istanbul, not only to Turkey but to the world, is undeniable. This simple geography makes the city one of the world's most critical housing markets.
3: Investment Hub
When looking at real estate investment in Turkey, Istanbul is the hub of the industry and for good reasons. Firstly, the city has been reinventing its housing market, and significant lifestyle developments offer real estate investors opportunities to buy brand-new housing at off-plan prices. Additionally, many investors opt for long-term, interest-free payment plans to save even more money. Lastly, Turkey runs citizenship by investment schemes. This only applies to government-approved housing, most of which is in Istanbul. The solid attraction for investors drives demands up even more.
4: Turkish Lira and Construction Prices
For quite a few years, the Turkish lira devalued, but after the COVID pandemic, the lira took a massive nosedive. While you might assume this is good for foreign buyers, it was terrible news for anyone buying imported goods because they were priced in foreign currencies like the USD or the Euro. Unfortunately, most of Turkey's construction materials are sourced from abroad. So all of a sudden, house prices across Istanbul and Turkey shot up.
5: Global Events
So, as if that wasn't enough, global events also affected house prices across the globe as consumer prices went up. The most notable being the Russian-Ukraine war. This didn't just affect Istanbul or Turkey, people in many different countries have seen house, electricity, and daily food items shoot up in price.
6: Where to Find the Cheapest Houses in Istanbul
So, there are quite a few factors affecting the housing market. However, some areas of Istanbul still attract budget buyers. Don't think house buyers have to compromise with these areas because most are in the process of redevelopment and show much potential for capital appreciation.
BAHCESEHIR: As one of 11 official neighbourhoods in Istanbul's Basaksehir district, Bahcesehir receives much buyer interest because of its commitment to green living. The local council has prioritised green spaces like parks and gardens.
BEYLIKDUZU: As another district promoting green living, this area boasts delightful seaside towns like Gurpinar. Sitting between Buyukcekmece and Kucukcekmece, Beylikduzu is part of a massive regeneration program.
ESENYURT: Also sitting in European Istanbul, Esenyurt's excellent public transport network attracts families and young working professionals commuting into the main city centre. A bonus for foreign house buyers is Istanbul's new airport, which is 20 minutes away.
KARTAL: Heading to Asian Istanbul, house buyers love the seaside location and views of the nostalgic Princes Islands. Kartal is a thriving district in its own right, with everything on your doorstep.
PENDIK: Sitting close to the E-5 highway, TEM highway, and ferry terminals, Pendik is a short drive from Sabiha Gokcen airport. The bonus here is that the nearby Aydos Forest, and the homes surrounding it, are in high demand.
SANCAKTEPE: Also surrounded by green areas, this area is still developing but offers much future potential. House buyers have an excellent range of amenities and public transport links.
More About Property in Istanbul
Apartments and Villas for Sale: If you are interested in property for sale in Istanbul, see our portfolio of apartments and villas. Each listing contains everything to know, including price, location, home features and contact details to find out more. Alternatively, call our Istanbul office to arrange property viewings or speak to an agent about the rise in Istanbul property prices. Also, follow us on YouTube, where we regularly do Istanbul apartment tours from various districts.
How to Buy Property in Istanbul: If you are wondering how to buy property in Istanbul, the process is quick and easy. Since Istanbul is Turkey's most significant and busiest city, you may think the real estate market is mayhem. Indeed, the constant ever-revolving circles of buyers and sellers happen in all 39 official districts, but in this article, we break down the process into eight easy-to-understand steps.
Istanbul Property and Turkish Citizenship: If you are looking at the Istanbul property market to get Turkish citizenship, you are on the right track. Real estate investors flock worldwide to buy property, often choosing the off-plan and new developments to capitalise on appreciation potential. As a result, Istanbul's housing market is a global hotspot, and the eyes of the world are watching to see how the city performs over the next ten years.