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Should I buy my Turkish Home in Istanbul or Mediterranean Coast

By: Cameron Deggin

When it comes to buying property in Turkey, one of the most common dilemmas buyers face is whether to invest in vibrant Istanbul or the tranquil, sun-soaked coastal regions of Bodrum, Antalya, or Fethiye. While both options have their own appeal, the right choice depends on your goals: whether you're prioritising investment (ROI) and Turkish citizenship or seeking a relaxing holiday home for an extended stay of months at a time.

Turkish property

 

Why Istanbul is the Ideal Destination for Investors

If your primary goal is maximising ROI, Istanbul continues to stand out as the top choice. Istanbul combines economic dynamism with cultural importance and a privileged geographic location, making it an exceptional opportunity for investors, particularly those seeking to meet Turkish citizenship requirements.

Properties in Istanbul's affordable city centre provide exceptional long-term growth potential. Unlike coastal regions, where the real estate market is driven by tourism and seasonal demand, Istanbul is a thriving metropolis with consistent rental demand throughout the year. The robust rental market, especially for short-term lettings via Airbnb, ensures investors can capitalise on both short and long-term rental opportunities.

This strategic location as an economic and cultural hub of Turkey further strengthens the property market in Istanbul. Its high population density, young workforce, and continuous infrastructure development in all aspects make Istanbul a prime location for investment for both domestic and overseas investors.

According to data, Airbnb’s in Istanbul had an occupancy rate of around 65% in 2023, which is above many coastal and other tourist cities. Data also showed that in 2023, Istanbul hosted over 17.4 million tourists. As the main entry point to Turkey, Istanbul's tourism appeal provides a stable demand for rental investments, further increasing ROI.

Property in Istanbul

 

Property Valuation and Turkish Citizenship

For buyers looking to obtain Turkish citizenship through real estate investment, Istanbul offers an added advantage. Property valuations tend to be closer to their actual purchase prices, meaning that you’re more likely to meet the $400,000 valuation threshold for citizenship without overspending.

In contrast, properties in the south coast regions of Turkey often have lower official valuations compared to their actual purchase prices. This means that buyers may need to spend more money other than the $400,000 minimum required for citizenship conditions to be met.  

By choosing Istanbul to buy a property, you not only maximise potential ROI but also ease the process of securing Turkish citizenship.

Istanbul real estate

 

South coast Maintenance and Property Management challenges

Owning a holiday home in Bodrum, Fethiye, or Antalya involves ongoing maintenance that can become expensive if you don’t intend to spend several months every year in Turkey. As the owner, you will have to ensure that your property is regularly maintained, professionally cleaned, and kept secure while you are out of the country.

In 2023, Antalya's average rental yield was around 3-4%, with fluctuations because of the seasonal nature of the region. For those planning to visit Turkey sparingly, investing in Istanbul provides much more reliability. This will not only bring in higher rental yields of 5-8%, but each time you want to visit the Turkish coast, you can rent a villa or stay in a luxury hotel, enjoying all the benefits without the headaches of owning and maintaining a property.

Turkish villa

 

Turkish REIF’s for Maximum Investment

For those whose goal is maximising ROI above everything else, another option worth considering is investing in a Turkish Real Estate Investment Fund (REIF).

A Turkish REIF enables investment in pooled funds to accomplish investment goals through diversified and professionally managed real estate portfolios. The funds are invested across a wide range of property types, including residential, commercial, industrial, and even tourism properties.

One of the advantages of a Turkish REIF is that it allows you to invest in Turkey at a much lower entry price – you can invest from as little as $100,000. A REIF offers professional management, risk diversification, and access to extensive developments that might be out of reach as an individual investor.

Turkish REIFs

 

The appeal of the south coast for Lifestyle Buyers

Not all buyers are focused on ROI or citizenship; some prioritise lifestyle over investment returns. For these, Turkey's south coast, particularly areas such as Bodrum, Fethiye, and Antalya, offer an ideal setting for a second home or retirement.

The south coast of Turkey is a place of magnificent natural beauty, a Mediterranean climate, and relaxed lifestyle. If retirement is your next stage in life, or you wish to spend extended periods of time in Turkey, this may be the place for you. Bodrum was visited by more than 1.7 million visitors in 2023 alone and has become one of the most popular vacation destinations in Turkey, known for luxury resorts, marinas, and fine dining.

While ROI numbers may not match Istanbul, the lifestyle perks certainly make up for it.

For those planning to spend several months in Turkey each year, the south coast offers properties with stunning views and within close proximity to the sea and beaches. These homes often come with facilities that are harder to find, or are a lot more expensive in Istanbul, such as outdoor spaces, huge gardens, and private pools.

Bodrum property

 

Property Turkey Recommendations

 

Istanbul for Investors

For buyers prioritising ROI, citizenship, or high-growth investment, Istanbul is the clear choice. With a stronger rental market, higher property valuations, and status as Turkey’s cultural and economic hub, Istanbul offers the best opportunities to maximise your investment potential.

RECOMMENDED PROPERTY: SENSE SISLI

Located in the vibrant Bomonti neighbourhood, Sense Sisli apartments are just a short walking distance away from Nisantasi, Cevahir Shopping Mall, and Sisli Metro. Offering up to 10% per annum in rental returns via Airbnb, these properties qualify for Turkish Citizenship by Investment. Click here to view Sense Sisli properties.

 

The South Coast for Lifestyle Buyers

If lifestyle is your key focus and you want to retire or spend a lot of time in Turkey, the south coast regions have that perfect blend of natural beauty, tranquillity, Mediterranean and Aegean charm. However, a holiday home only makes sense if you spend considerable time in Turkey every year.

RECOMMENDED PROPERTY: U HOUSE GUMUSLUK

Created in partnership with world famous architect Saffet Kaya, the U House is a one-of-a-kind villa blending traditional and modern architecture in a unique U shape with private pool and landscaped garden. This villa is the perfect retreat for spending several months at a time in Turkey. Click here to view the U House Gumusluk.

U House Bodrum

 

Consider a Turkish REIF for Maximum ROI

If your goal is strictly ROI with absolute minimal involvement, a Turkish REIF offers a hands-off option that delivers professional management and diversified real estate exposure, giving you all the benefits without the hassle of owning and maintaining individual properties by yourself.

 

Three different Buyer Scenarios

1 - Buyer looking to spend 2-4 weeks in Bodrum every summer and apply for Citizenship. Although a villa in Bodrum might sound like the ideal choice, this buyer could be better off investing in affordable Istanbul properties for higher rental returns and using the increased ROI to pay for private villas or luxury hotels in Bodrum every summer. The buyer can apply for Citizenship and the Property Valuation in Istanbul is likely to be easier to reach the $400,000 threshold needed.

2 - Family wanting to spend 2-3 months in Fethiye every summer with a view of retiring in ten years. This family are lifestyle buyers and buying a property in Fethiye outright makes the most sense. Although the property might return less or have a lower growth ceiling than an investment in Istanbul, the buyers are most likely to be unconcerned about that as they are seeking a family home that they can call their own.

3 - Investor looking to maximise ROI and apply for Citizenship as part of a diverse real estate portfolio. This person would be best suited investing in a Turkish REIF that allows a hands-off investment strategy, better returns, and can be used to apply for Citizenship. The investor doesn’t need to worry about maintenance or management of their property as the fund will take care of everything from A-Z. Citizenship can also be obtained as part of this strategy by investing $500,000.

Property in Istanbul Sisli

 

Guiding Buyers to the Right Decision

We understand the importance of aligning property recommendations with the needs of our clients. At Property Turkey, whether you’re aiming for high returns and citizenship through investment in Istanbul, or searching for a coastal retreat to live in, our expert team is here to guide you every step of the way. Contact us today for more information.

Property Turkey

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