Foreign buyers wanting to know reasons to buy property in Istanbul are assured plenty. Istanbul, where Europe meets Asia, offers a rich history, stunning architecture, and rapidly growing real estate markets. For foreign buyers considering investing in international property, Istanbul has attractive propositions and plenty of properties for sale. Indeed, Istanbul ticks all the boxes by easily matching European countries and major cities of the world for every aspect of investing and daily life. So, what can potential buyers expect?
Why Buy Property in Istanbul - Turkey
1: Strategic Location and Popular Destination
Istanbul's strategic location at the crossroads of Europe and Asia makes it a significant global hub. Out of all the Turkish cities, Istanbul's city centre is king. As Turkey's largest city, its influence and power are undeniable. Istanbul's geographic position connects East and West and provides access to major markets in the Middle East and North Africa. This proximity to emerging markets has spurred foreign investment, economic growth, and urban development, making it a prime destination for property investment. One crucial aspect is the Bosphorus Strait. For centuries, empires have fought to gain power over the Bosphorus Strait. Once you controlled that, you controlled shipping routes from the Black Sea to the Marmara. Life is much more peaceful now, but the Bosphorus Strait still maintains global importance.
2: Economic Growth Reasons
Turkey's economy has steadily grown in recent years. As the country's economic and financial centre, Istanbul plays a crucial role in this development. Istanbul city centre offers numerous opportunities for residential and commercial real estate investment due to burgeoning industries, thriving startup scenes, and increased foreign direct investment. Many international companies have set up offices here. In times of global crisis, Istanbul has also always weathered the storm. (More about the economy.)
3: Booming Tourism Industries
Istanbul, a top tourist destination, attracts millions yearly and features hundreds of historical sites, cultural diversity, and vibrant atmospheres. Investing in property here means you can tap into robust short-term rental markets as tourists seek accommodations ranging from luxury apartments to charming historic homes. While Istanbul city centre has no beaches, beautiful beaches are found on shores near the black sea and in places like the Princes Islands. Istanbul also boasts iconic landmarks like the Hagia Sophia, Topkapi Palace, and Blue Mosque. Owning property in this historic city allows you to immerse yourself in cultural experiences and live amidst centuries of history. (About tourist attractions in Istanbul.)
4: Diverse Real Estate Options
In Istanbul, real estate agents and construction companies feature diverse real estate options to suit various budgets and preferences. Whether you're interested in a modern apartment in a bustling neighbourhood, a charming detached villa in the Old City, or affordable luxury real estate, you'll find something to meet your criteria. The real estate market caters to various segments, from luxury penthouses to more affordable entry-level properties, and home buyers don't have to pay capital gains tax if they keep the property for five years. Istanbul is Turkey's most vibrant real estate market and a constantly revolving circle of buyers and sellers. In addition, the Bosphorus Yali mansions are Turkey's most expensive real estate market, and some are even the most costly houses in the world. (Browse property for sale in Istanbul.)
5: Why Real Estate Prices Match European Countries
Istanbul's real estate market offers competitive prices compared to other major European cities. While Istanbul continues to grow and modernise, property prices remain relatively affordable. The affordable prices and the potential for capital appreciation make Istanbul a lucrative option for investors. Currently, foreign investors head to outskirt districts, with residential complexes eligible for the Turkish citizenship program. In addition, some developers also offer 0% interest on purchase prices of payment plans between 1 to 5 years. With average prices per square metre easily beating European countries, investors see much potential for a return on investment. In addition, the cost of living and running a property with yearly bills and maintenance is much cheaper.
6: Rental Investment and Commercial Opportunities
Istanbul's rental market is thriving thanks to its status as a global city and tourist destination, and the city's attractive rental yield potential provides steady income streams for property investors. With proper management, your property can yield impressive returns, making Istanbul a lucrative location for buy-to-let investments. Buy-to-let for tourism interests always proves to be in high demand if you buy in the central areas near the tourist attractions. Thanks to Istanbul's growing population, long-term permanent rentals are also in demand, while commercial properties attract many small businesses.
7: Public Transport and infrastructure
Massive projects like the Marmaray tunnel have improved transportation and increased property values in surrounding areas. Investment in roads and affordable travel costs are top priorities. Since Istanbul council wants to make travel in and around the city as quick and smooth as possible. To see the innovation in public transport, we need only look at the Bosphorus bridges that connect Asian Istanbul with the European side. The metro system is constantly being upgraded and expanded, and transport links and new roads into outskirt districts ensure getting to the centre is quick.
8: Buy Property for the Quality of Life
Despite being a bustling city, Istanbul's exceptional quality of life and friendly people sit alongside the diverse culinary scene, recreational facilities, vibrant arts, and entertainment options, so residents have a high standard of living alongside the city vibes. Istanbul's beautiful Bosphorus views and proximity to historical sites and natural wonders, like the Princes' Islands, provide an enviable lifestyle. In Istanbul, the benefits of city life for any foreign person, regardless of background, stand tall and proud. City living isn't for everyone, but Istanbul is an alpha city that ranks alongside Rome, Milan and Paris.
9: Istanbul Airport
Istanbul is now home to the world's most ambitious international airport. Officially opened in 2018, this colossal airport has already made waves in the aviation industry and is a critical global travel hub. The European Istanbul airport near the Black Sea coast is approximately 35 kilometres from the city centre, ensuring that it's well-connected to Istanbul centre. Several highways, including the Third Bosphorus Bridge, offer convenient airport access. The terminal is designed to handle over 200 million passengers annually when fully operational, making it one of the world's busiest airports. Equipped with cutting-edge facilities and services, the airport is a hub for several prominent airlines, including Turkish Airlines, the country's national carrier. Furthermore, it testifies to Turkey's desire to become a global transportation hub, boosting its reputation and attractiveness for business and tourism.
10: Turkish Citizenship through Real Estate Investment
The Turkish Citizenship by Investment Program, initiated in September 2018, aims to attract foreign investors by offering Turkish citizenship and permanent residence in exchange for specific real estate investments in the country. This program has gained immense popularity among international investors due to favourable terms and numerous benefits of citizenship by property investment. To qualify for Turkish citizenship through real estate investment, foreign nationals must make a minimum investment of USD 400,000 or its equivalent in Turkish Lira. This investment can be one property or multiple Turkish properties as long as the combined value meets or exceeds the set threshold.
After gaining a residence permit, applicants make the application and submit legal documents, which take roughly 6 months to approve. The most apparent benefit for foreign nationals is gaining Turkish citizenship for yourself and your immediate family members, including your spouse and children under 18. This citizenship opens doors to several opportunities in Turkey, including a growing economy, cultural heritage, and strategic location between Europe and Asia, and especially appeals to Middle Eastern buyers. (More about citizenship by investment in Turkey.)
11: Many Popular Neighbourhoods to Buy Residential Properties in Istanbul
Central Beyoğlu: Beyoğlu, a central neighbourhood known for iconic landmarks like Taksim Square and İstiklal Avenue, represents modern Istanbul with thriving art scenes, numerous restaurants, and bustling nightlife. Beyoğlu offers several real estate options, including historic buildings, modern apartments, and cosy neighbourhoods. Property prices in Beyoğlu have consistently grown, making this district popular with investors.
Stylish Beşiktaş: In European Istanbul, Beşiktaş stands supreme for business, culture, and entertainment. This district has many financial institutions, upscale restaurants, and lively bars. Beşiktaş, a sought-after area for commercial and residential luxury homes, offers beautiful sea views, excellent public transportation, and proximity to major landmarks like Dolmabahce Palace.
Kadikoy: For property in Asian Istanbul, property for sale in Kadikoy offers front-row seats to laid-back atmospheres, historic streets, and vibrant street markets. Kadikoy provides unique contrasts to European Istanbul. Property prices in Kadikoy have steadily risen because of increased demand from Turkish and international investors.
Nostalgic Uskudar: Uskudar, in Asian Istanbul, offers serene environments right on the Bosphorus shores. This district is renowned for historical landmarks, mosques, and charming waterfront neighbourhoods. Property in Uskudar often comes with stunning Bosphorus views. While property prices are relatively high, the investment potential and lifestyles make Uskudar attractive.
Bebek: Bebek, a more expensive neighbourhood on the Bosphorus in European Istanbul, is synonymous with luxury living, offering upscale restaurants, trendy boutiques, and stunning seafront properties. Property prices in Bebek are among the highest in Istanbul. Still, exclusive lifestyles and potential for capital appreciation make this area compelling for high-end investors.
Upscale Şişli: Sisli is one of Istanbul's major commercial and business centres. Home to vibrant neighbourhoods like Nisantasi and Bomonti, Sisli offers luxury residences, commercial properties, and cultural attractions. It's a prime location for business professionals and urban enthusiasts, and the area's central location and excellent infrastructure contribute to its popularity among investors.
Sarıyer: Sariyer, in European Istanbul, beautifully combines nature with urban life. The district offers beautiful Bosphorus views, lush greenery, and tranquil atmospheres, alongside peaceful, natural environments and quick access to Istanbul's city centre. The real estate market here has steadily grown, attracting local and international buyers.
12. Real Estate Projects: A Growing Trend
In recent years, local government-driven real estate projects have become an attractive option for investors in Istanbul. Municipalities in various districts have launched initiatives to redevelop and modernise neighbourhoods, offering new properties and opportunities for investment. These projects often include parks, recreational areas, and improved infrastructure, making them appealing for residential and commercial purposes. While more established districts hold great appeal, keep an eye on emerging neighbourhoods with growth potential. European Areas like Kucukcekmece, Esenyurt, Bahçeşehir and Kartal, and Ataşehir in Asian Istanbul experience significant development and are worth considering for investment.
Critical Considerations for Property Investment
Firstly, determine your budget and consider areas that align with your financial capacity. Do you want long-term capital appreciation or rental income? Your investment goals will influence the neighbourhood and property type. Consider your lifestyle preferences, such as urban or suburban living, proximity to amenities, and access to public transportation. Istanbul has many properties, including apartments, villas, historic homes, and commercial spaces, that will definitely match your investment strategy.
Also, assess the availability of transportation options and the quality of infrastructure. Lastly, stay informed about local regulations, property taxes, and potential changes that might affect your investment. Suppose you are looking for property for sale in Istanbul, and are unsure of local neighbourhoods. In that case, we give in-depth information on our viewing appointments. Our local agents have expert knowledge of residential and business districts. They can help you find the perfect neighbourhood to suit your budget and preferences. We also do virtual tours for viewing.
Summary of Reasons to Buy Istanbul Property
So, as you can see, Istanbul's diverse real estate market offers everything for property investors. Whether you're seeking a bustling urban lifestyle, a serene waterfront environment, or blended modernity and tradition, Istanbul has it all. The key to successful property investments in Istanbul lies in thorough research, a clear understanding of your goals, and staying informed about evolving real estate markets. By considering the factors in this comprehensive guide, real estate buyers can make an informed decision and find the perfect place to buy property in this fascinating city, where East and West meet and history blends seamlessly with the future.
Use Our Agent Services
As a prominent real estate agent in Istanbul, we have helped many foreign property buyers purchase investment properties in Istanbul. With many apartments for sale and villas, our real estate projects and portfolio offer you, the buyer, plenty of options. If you want to know more about property for sale or why real estate buyers should purchase property in Istanbul, contact us today. Our local buying agent can answer all your questions and email you a portfolio and essential guide.
Also About Istanbul – Turkey
The Golden Horn for Property Investment: This iconic inlet stretches for approximately 7.5 kilometres, curving gracefully between the city's European and Asian sides, making it a prime reason to buy real estate. With shimmering waters and historic neighbourhoods lining the shores, the Golden Horn has played a vital role in Istanbul's rich history. It has been a centre of maritime activity, trade, and culture for centuries, and its picturesque setting continues to captivate both locals and visitors.
Invest in European Istanbul: Home to some of Istanbul's most famous districts, landmarks, and modern developments, it's a bustling metropolis that seamlessly integrates the ancient and the contemporary. From the historic Sultanahmet with iconic monuments like the Hagia Sophia and Blue Mosque to the lively neighbourhoods of Beyoğlu Taksim Square and bustling waterfront districts like Beşiktaş, European Istanbul offers a mesmerising fusion of history, culture, and cosmopolitan living, and is one of many reasons to buy property in Istanbul – Turkey.
350 metres away from the world famous Istiklal Avenue, this boutique hotel is a must see for those looking to invest and run their own business in Turkey – enquire today as this one will not be available for long.
With fantastic views out towards the Golden Horn from Halic, these Big Life near Little Bosphorus by Rams apartments are available in various types and sizes for buyers to choose from and form part of an excellent project equipped with amenities.
These stunning U Houses in Istanbul have been designed to luxury standards throughout and are nestled within the peaceful area of Buyukcekmece – a few minutes away from schools, transport, and daily amenities.
With panoramic views of the sea, this luxury-designed villa is on the market today as completely furnished and decorated in Yalikavak area of Bodrum and is just ten minutes walking distance away from the Marina.