Property Guide Turkey

What is The Best City For Property Investment in Turkey?

Although the housing demand of the Turkish people has shown a decreasing trend due to rising prices and loan rates in recent years, it continues to be a good investment for many foreign investors with citizenship opportunity. In addition to this, progressively increase in foreign property investments in Turkey. Also, due to the increase in housing construction costs in recent years, it is estimated that housing prices will increase by up to 50% in the coming years. This situation represents a great gain for property investors. You can find the details that stand out in five major cities such as Istanbul, Izmir, Ankara, Bursa, and Antalya, which are preferred by foreign investors for property investments.

Top 5 Cities for Property Investment in Turkey

According to the data of January 2020, m2 prices in Istanbul have decreased by 6% in recent years and increased by 27% in other cities. In the coming period, Turkey has expected an 8 percent rise in housing prices in general, the highest increase is expected in Antalya. Housing square meter prices have increased by 27% in Antalya, 26% in Izmir, 23% in Bursa and 9% in Ankara. Three main factors stand out for the price drop in Istanbul:

  • Square meter unit prices exceeded the purchasing power of the consumer,
  • Having a product stock in the same segment,
  • Decreased appetite for property investment of consumers.

The increase observed in other cities such as Antalya, İzmir, Bursa, and Ankara is estimated to be due to the limited supply of housing and the increase in consumer demand for new and modern houses in these cities.

According to the data of 2020, when the amortization periods of the houses are examined, Eyüpsultan is the district with the lowest amortization period in Istanbul with 17 years, while Tarabya stands out as the district where the investment returns in the longest time with its 55-year amortization period. With 17 years of amortization period in Ankara, Gölbaşı is ranked as the districts with the lowest amortization periods with 16 years of amortization in Antalya, Muratpaşa with 16 years of amortization in Bursa, and 19 years of amortization in Bursa, and Foça with 22 years of amortization in İzmir.

Property Investment Environment in Istanbul            

Housing prices have increased in many districts of Istanbul, which has always been the focus of interest in property investment. It decreased in Ataşehir, Beşiktaş, Beykoz, Beyoğlu, Eyüpsultan, and Sultanbeyli. In the next six months, housing prices are expected to increase by 4 percent in Istanbul.

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

The fact that the amortization periods are so high indicates that the rental prices are low despite the high real estate sales prices in these regions. Therefore, investing in property in these regions is not recommended. Property investment in districts such as Ataşehir, Beşiktaş, Beykoz, Beyoğlu, Eyüpsultan, and Sultanbeyli will provide an advantage in the future. Especially the interest of foreign investors in property investment in Istanbul continues to increase.

Property Investment Environment in Ankara, Izmir, and Bursa

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

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. A 4 percent increase in housing prices is expected in İzmir in the next six months.

Housing prices in Bursa 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 Property Investment in Turkey: Istanbul

With no doubt, Istanbul has the biggest potential for property investment when compared to other regions of country. There are a lot of ongoing residence projects and ready for sale projects in Istanbul. Please click here to explore them.

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