Four up-and-coming investment areas in Istanbul
Istanbul’s better known investment areas are also the most expensive in the city. Areas like Besiktas at the top of the ladder with property priced at an eye-watering average of $2,183 per square metre. However, although demand for housing in the city is at a peak unseen in history, there are still a few areas that are currently being regenerated, ready for a new wave of buyers.
We give you a rundown on some of the most promising up-and-coming areas in the city. At the current rate of growth prices won’t stay low for long, but while they are investors’ attention is turning to these little-known districts.
Istanbul’s “garden city” is a suburb for those looking for an alternative to the eye-watering prices found closer to the city centre. It’s a modern suburb which is also pleasing to the eye, thanks to careful town planning.
Located on the European side of the city, Bahcesehir is 35 kilometres from Tasksim Square and 18km from Ataturk Airport, while Buyukcekmece and Kucukcekmece lakes are around ten minutes away. The suburb is connected by motorways, buses and in the not-too-distant future, a metro line will no doubt serve the area.
Bahcesehir is popular with young families and city professionals who prefer to live in a quieter area and commute to their jobs in the city. The suburb is populated with cinemas, shopping centres, walking paths, bars and restaurants. Bahcesehir Lake Park is the “Central Park” equivalent in the area, and is filled with people exercising and children playing.
What makes Bahcesehir a good investment?
Although Bahcesehir property prices have doubled in the last decade, the suburb is still considered up-and-coming. Here’s why it’s a great investment:
- Its urban design. The developments here were designed with people in mind. Roads are wide, there are lots of green spaces and awareness of environmental issues, and infrastructure has been carefully developed.
- Luxury lifestyle at a reasonable price. While Bahcesehir is regarded as a high-end district, thanks to its design, it’s still affordable, with properties costing around a third of the square metre value as a comparable Sisli property.
- Strong rental market. There is a high demand for quality rental properties in Bahcesehir. Young professionals are at the front of the queue, creating opportunities for investors who are seeking steady, long-term tenants.
- Off-plan incentives. From off-plan stage to completion there is a jump of around 15% on property value, an amazing opportunity for buyers who enter at the early stages. High demand for property means a safe exit strategy.
The story of Bomonti is a true rags-to-riches tale. Until a few years ago, the old quarter of Sisli was rundown and neglected. With beautiful mosques, churches and synagogues at every turn, the area was explored only by intrepid tourists and the working class families who ran small businesses here.
However, a few years ago Bomonti began to smarten up, which was inevitable, given its central location and excellent travel links to the rest of the city, including access to nearby motorways and public transport that can convey passengers to Taksim Square in half an hour.
When the Hilton Hotel moved in, Bomonti’s fate was sealed. The hotel giant built the city’s largest hotel in the suburb, causing a surge of interest in the historic area. Still on the cards for Bomonti is a number of branded residences, which are still under construction, a clutch of shops and a cultural centre. Soon, Bomonti will likely catch up to the rest of expensive Sisli.
Why makes Bomonti a good investment?
- Prices are still low in Bomonti. Walk ten minutes towards Nisantasi and you’ll find properties costing around $2000 per square metre. However, prices in Bomonti are around $800/sqm. This will not last. As the area becomes more and more desirable and more residences are built. It’s an age-old story, one that we’ve seen in every city from London to Sydney. Bomonti will soon be out of range to most investors.
- Proximity to the central city. Location is everything. Whether you’re a working professio.nal, a tourist or an international company, proximity to the heart of Istanbul is absolutely key.
- Opportunities for a range of investors. A new project being built in the area will provide an “in” for new investors in Istanbul.
Gaziosmanpasa is a fascinating, colourful part of the city with people from many different cultures practicing many different religions. In terms of its development timeline, working class Gaziosmanpasa is two or three years behind Bomonti. Although the well-established district, near Eyup and Fatih, is a low income area, it’s leading the way in urban regeneration.
The centre of the district is populated by descendants of the Balkan immigrants who moved here in the 1950s and 1960s and built ramshackle, illegal homes.
Now, these homes are being pulled down, replaced by much smarter developments. The municipality is busy building sports facilities, theatres, shopping centres and improving transport links to the rest of the city.
- Get in at the ground floor. With the improvements to infrastructure that are on the horizon, Gaziosmanpasa will quickly become the next Bomonti - and even the next Karakoy. These kinds of opportunities are rarely seen in Turkey’s largest city.
- Excellent travel links to the centre mean Gaziosmanpasa will likely become a hot favourite with young professionals seeking rental properties in commutable areas.
Atasehir is about to burst onto the world scene, with the development of a $2.6 billion finance centre (the IIFC) that will turn Istanbul into a global finance centre.
Located on the Asian side of the city, is a well developed, elite neighbourhood with superb housing developments. Prices are still low enough to attract young professionals, although high earners are moving in which is pushing prices up.
Atasehir’s proximity to the first Bosporus bridge as well as two major motorways means residents have easy access to the rest of the city.
The IIFC development will house the country’s head financial offices, banks and related businesses, and will occupy 4.1 million square metres of space.
What makes Atasehir a good investment?
- Although the Asian side of the city has traditionally been seen as less desirable than the European side, this has changed, and investors are now moving to the Asian side without a backward glance. As demand outstrips supply all over the city, modern areas with good travel links like Atasehir are in high demand.
- The IIFC development will transform the district’s fortunes. Property prices and rents will increase, as will demand from buyers working at and associated with the development.
- As urban regeneration rolls out across the city, opening up more and more opportunities for investors, it’s clear that there is still a great deal of room for prices to move in this ever-growing metropolis. If you have any questions about properties in these areas please get in touch with us.