Discover TOP Real Estate Investment Opportunities in Istanbul 2024 & 2025
By: Cameron Deggin
At Property Turkey, we pride ourselves on providing unparalleled insights into the Turkish real estate market. This comprehensive guide will educate you on Istanbul’s real estate dynamics, helping you make informed investment decisions. Our goal is to highlight the segments of the market with the highest potential for return on investment (ROI), particularly for those interested in Istanbul real estate.
Istanbul's Property Market Overview
Economic Growth and Projections
Turkey is set for remarkable economic growth, projected to be the 5th largest economy globally by 2030. Despite challenges like post-COVID recovery and high inflation, robust reforms and strategic investments are driving this growth. Key sectors include industrial machinery, transportation equipment, and renewable energy.
Property Price Growth
From 2018 to 2024, Istanbul’s property prices increased by approximately 40% on average, paralleling Turkey’s GDP growth. In other words, average property price increase in Turkey from 2018 to 2023 has been perfectly in line with its nominal GDP growth for the same period.
Looking forward, property prices in Istanbul are expected to rise by 67% from 2024 to 2030, driven by the overall economic expansion in line with Turkey’s forecasted nominal GDP growth for the same period. The World Bank forecasts nominal GDP of Turkey to rise from $1.08 Trillion in 2024 to $1.8 Trillion in 2030, this is globally only second to Libya in terms of nominal GDP growth for the same period.
Demographics and Housing Demand
Turkey’s young and growing population is a significant driver of housing demand. With a larger proportion of first-time buyers and a preference for urban living, city centre properties are highly sought after. The country’s population of 85 million is distributed as follows:
• Low Income: Approximately 20% of the population
• Middle Income: Around 60% of the population
• High Income: The top 20% of the population
This demographic structure supports the demand for affordable housing, especially among young professionals and middle-income families.
Investment Segments: Which Properties Offer the Best ROI in Istanbul?
1. Small Apartments in City Centres that are Affordable
Key Areas: Beşiktaş, Beyoğlu, Şişli
• Demand Drivers: Young professionals and middle-income families
• Tourism Appeal: High occupancy rates for short-term rentals on platforms like Airbnb
• ROI Projection:
- Capital Growth: High, due to steady demand and limited supply
- Rental Yields: High, driven by tourism and short-term rentals
Why Invest? These properties offer the best combination of capital appreciation and rental income, making them ideal for investors looking to maximise ROI.
Supporting Data: Areas like Arnavutköy, Silivri, Çatalca, Beylikdüzü, and Başakşehir have abundant land for new developments, leading to more affordable housing. However, in established city centre districts like Beşiktaş, Beyoğlu, and Şişli, the availability of land for new developments is minimal, creating a high demand and limited supply scenario that drives up property prices and rental yields.
Suitable properties:
Sense Levent: Discover Istanbul's premier designer residences with Sense Levent apartments.
Sense Sisli: Explore prime investment opportunities with Sense Sisli apartments.
2. Istanbul Finance Centre (IFC) and Fikirtepe
Key Areas: Ataşehir (IFC), Kadıköy (Fikirtepe)
• Demand Drivers: Proximity to the soon-to-be fully operational Istanbul Finance Centre, which will attract Turkey’s top financial institutions and professionals
• Future Prospects: Significant development and regeneration efforts in Fikirtepe, increasing its appeal and property values
• ROI Projection:
- Capital Growth: Very high, due to ongoing and future developments
- Rental Yields: High, driven by demand from professionals working in the finance sector
Why Invest? The Istanbul Finance Centre will become the hub of Turkey’s financial world, driving demand for both residential and commercial properties. Fikirtepe’s regeneration will also boost its attractiveness and property values.
Supporting Data: The proximity to the Istanbul Finance Centre and the massive redevelopment in Fikirtepe make these areas prime targets for investment. The upcoming full operation of the IFC will attract professionals who need quality housing close to work, ensuring both capital appreciation and strong rental income.
Suitable properties:
Times Tower: Designed and built as a small city within a city, close to the International Finance Centre.
3. Small Apartments in City Centres that are High-End and Expensive
Key Areas: Beşiktaş, Şişli, Levent, Kadikoy
• Demand Drivers: Wealthy individuals, expatriates, and high-net-worth tourists
• Premium Rentals: High-end properties can command premium rates
• ROI Projection:
- Capital Growth: Moderate
- Rental Yields: High, due to premium rental rates
Why Invest? Suburban apartments offer balanced returns with good potential for capital growth and stable rental income.
Supporting Data: Areas like Beylikdüzü and Başakşehir continue to grow due to their affordable prices and robust infrastructure developments. However, their growth potential is tempered by the availability of land, which allows for more new developments and hence, more supply.
Suitable properties:
Properties in Beylikdüzü: Browse suburban apartments at affordable prices in Beylikdüzü Istanbul.
Properties in Buyukcekmece: Buyukcekmece enjoys proximity to the Sea of Marmara coast, popular with families.
5. Large Family Homes and Villas
Key Areas: Silivri, Çatalca, Sariyer, Beykoz
• Demand Drivers: High-income families and those seeking larger living spaces
• Long-Term Rentals: Less attractive for short-term rentals, but high demand for long-term leases
1. Expert Insights: Our in-depth market analysis helps you make informed investment decisions.
2. Exclusive Listings: Access to properties that are not available elsewhere, including our own developments and provisions from our Real Estate Investment Fund, which has access to below market value offers.
For maximum ROI, small affordable apartments in city centre locations like Beşiktaş, Beyoğlu, and Şişli are your best bet. These areas offer high capital growth and robust rental yields, especially for short-term rentals.
Additionally, Istanbul Finance Centre and Fikirtepe present exceptional opportunities due to their strategic importance and ongoing developments. As Turkey’s economy grows, so will the value of these prime properties.
Ready to invest? Contact Property Turkey today and let us help you find the perfect property to maximise your returns.
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