Is Real Estate Investment in Istanbul Profitable?

Is Real Estate Investment in Istanbul Profitable?

Real estate is regarded as one of the safest and most profitable investment options out there wherever you go. One solid and maybe the most obvious reason is while the population keeps growing, the land supply is not increasing correspondingly, resulting in demand for housing to grow more and more with each passing day. People will always need a solid roof over their heads anywhere in the world, and Turkey is no exception. Especially Istanbul, the country’s most populous and developed city, stands as a profitable investment area for discerning buyers.

However, one might wonder, why has housing prices in Istanbul been decreasing in the last couple of years, and why should I invest in such times of uncertainty? There are two answers to the first question: one of them is the fluctuations in the exchange rates, particularly in the dollar currency as many developers quote their estate in dollar terms. This fact explains the second question: the lower lira/dollar ratio creates great opportunities particularly for those who possess adequate finances in dollar terms. Given the fact that the construction industry in Turkey is highly developed, you will find the most luxurious properties with quality craftsmanship for reasonable prices. The second answer to the first question is the excess supply in Istanbul real estate market. Yet, as the housing stocks dwindle, the housing and renting prices are expected to go up dramatically. This explanation too, again, forms a good ground for people who are questioning whether to buy a house in Istanbul or not. We’ve come to a simple outcome: buy today, when it is low in price, and benefit tomorrow, when circumstances change.

It is a well-known fact that the return of investment time in Turkey (20-24 years) is much shorter than many European countries such as Austria (51 years), Italy (42 years), England (38 years), France (36 years), and Norway (32 years). The government heavily relies on the construction and real estate industries, thus investing in urban renewal projects and infrastructure development, all resulting in real estate gaining value. One solid example is the Istanbul Canal project which dramatically increased the housing prices in areas that would have been inexpensive, such as Arnavutköy, Silivri, or Çatalca. Transportation is another field that the government has been steadily promoting: the Metrobus was introduced to Beylikdüzü in 2012, and now the said district is one of the fastest to increase in value along with a neighboring region, Esenyurt, which benefited from the convenient transportation. These resulted in a shift in the investment areas and paved the way for new districts to become the hotspots in terms of real estate. Istanbul is an ever-growing city that welcomes millions of newcomers, be it national or international, but always introducing new demand for housing in almost every district, whether it is a luxurious zone hosting foreign billionaires or business centers with convenient designs for the working people.

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