Which is the best place to invest in real estate in Turkey?

October 10, 2023
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“Top 5 Cities for Real Estate Investment in Turkey”

According to January 2020 data, while m2 prices in Istanbul have decreased by 6 percent in recent years, they have increased by 27 percent in other cities. While an 8 percent increase is expected in housing prices across Turkey in the upcoming period, the highest increase is expected to occur in Antalya. Housing square meter prices increased by 27 percent in Antalya, 26 percent in Izmir, 23 percent in Bursa and 9 percent in Ankara. Three main factors stand out for the price decrease in Istanbul:

The square meter unit prices are far above the purchasing power of the consumer,
Availability of product stock in the same segment,
Decreased consumer appetite for real estate investment.
It is estimated that the increase seen in other cities such as Antalya, İzmir, Bursa and Ankara is due to the limited housing supply and the increase in consumer demand for new and modern housing in these cities.

When the depreciation periods of the houses are examined according to the data of 2020, Eyüpsultan is the district with the lowest depreciation period with 17 years in Istanbul, while Tarabya stands out as the district where the investment returns in the longest time with a 55-year depreciation period. Gölbaşı, Antalya with a 17-year depreciation period in Ankara. Muratpaşa with a 16-year depreciation period in Turkey, Nilüfer and Osmangazi with a 19-year depreciation period in Bursa and Foça with a 22-year depreciation period in İzmir are listed as the districts with the lowest depreciation periods.

“Real Estate Investment Environment in Istanbul”

While housing prices have increased in many districts of Istanbul, which has always been the center of attention in real estate investment, they decreased in Ataşehir, Beşiktaş, Beykoz, Beyoğlu, Eyüpsultan and Sultanbeyli. Housing prices are expected to increase by 4 percent in Istanbul in the next six months.

While the average residential square meter sales price in Istanbul is 3 thousand 579 TL, the average return period of the real estate investment has been determined as 22 years. However, in some parts of Istanbul, it is seen that the return period of housing investment is up to 55 years.

The fact that the amortization periods are at such high levels indicates that the rental prices are low despite the high real estate sales prices in these regions. Therefore, it is not recommended to invest in real estate in these regions. Investing in real estate in districts such as Ataşehir, Beşiktaş, Beykoz, Beyoğlu, Eyüpsultan and Sultanbeyli will provide advantages in the future. In particular, the interest of foreign investors to invest in real estate in Istanbul continues to increase.

Real Estate Investment Environment in Ankara, Izmir and Bursa

Housing prices in Ankara have increased by 9 percent in the last three years. The average residential square meter sales price in Ankara is calculated as 1,787 TL, and the return period of the housing investment is 17 years. A 2 percent increase is expected in housing prices in the next six months in Ankara.

Housing prices in İzmir have increased by 26 percent in the last three years. While the average residential square meter sales price in İzmir is 2 thousand 914 TL, the return period of the housing investment is calculated as 20 years. Housing prices are expected to increase by 4 percent in the next six months in İzmir.

In Bursa, on the other hand, housing prices have increased by 23 percent in the last three years. While the average residential square meter sales price in Bursa was 2 thousand 77 TL, the return period of the housing investment was calculated as 19 years. It is estimated that there will be a 3 percent increase in housing prices in the next six months in Bursa.

Best City for Real Estate Investment in Turkey: Istanbul
Istanbul, the largest city in Turkey and Europe, has become one of the most popular investment centers in Turkey, both by hosting mega projects such as Kanal Istanbul, and recently with the advantage of citizenship by investment. Especially developing districts and regions on the transportation route to mega projects stand out with relatively short amortization periods and high return on investment.

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