Real estate investment in Istanbul

Real estate investment in Istanbul

Istanbul is one of the largest urban centers in Europe. Real estate investment in Istanbul is the centerpiece of the real estate market in Turkey. Its population is approximately 16 million. According to a survey report carried out by the statistics company (Euro monitor International). Istanbul is the third most visited city in Europe. While it ranked twelfth in the world. The total number of tourists who visited Turkey was about 48 million in 2020. As for Turkish cities, Istanbul naturally ranks first in this field. Many investors in several investments in Istanbul have achieved high profits. And the size of their business in Turkey doubled many times. This led to the emergence of investment records from Turkey and launched to the international arenas.  

Factors making Istanbul at the forefront of cities in real estate investment

• Diversity of investment forms in the city:

There are many different real estate projects in Istanbul, according to the housing style. There are residential projects of traditional homes, luxury projects with villas system, in addition to the smart home projects, the diversity of project areas among the different districts of Istanbul affects their prices, of course, housing in the city center is different from other farther districts, but the most important thing that distinguishes the various projects in Istanbul is the concentration of construction companies to meet all needs and various demands, in terms of prices and quality of housing in addition to the luxury and diversity of services to ensure the comfort of residents, municipalities are constantly working to secure the latest and best services, especially the Great Istanbul Municipality.

• Employment of Turkey in Istanbul:

Istanbul covers about 35.1% of the employment in Turkey, the average monthly income in Istanbul is about 640 USD, which is the highest in Turkey. Istanbul is also an important center for international maritime trade with its commercial ports and location as an intersection of international lands.

• Investing in the infrastructure pioneering projects:

Global Data expects the Turkish real estate market to grow by 12.19%, and the forecast was based on the Turkish government’s focus on investing in the development of the transportation sector within the vision of 2023. Among the most important infrastructure projects (the three Bosphorus bridges, Istanbul International Airport, advanced public transportation, shopping malls and luxury Istanbul malls, 18 new metro lines, the Eurasia Tunnel linking the two sides of the city across the bottom of the Bosphorus Strait, in addition to the upcoming Istanbul Water Canal project).

• The continuation of the urban transformation projects in the city well under way.

 What are the guidelines of real estate investment in Istanbul?

For a successful investment, remember to abide by the most important investment guidelines that guarantee you profit and long-term financial strength:

• Achieving a fortune in real estate is a long-term decision.
• Real estate profits are achieved from purchases and sales (trading).
• The lowest interest rates, the longest repayment period and the lowest down payment are obtained when requesting a bank loan, since the bankers know that real estate is less risk or loss for the bank.
• Insurance programs must be available for real estate loans.
• There are permit periods before the start of paying the mortgage installments.
• There are tax exemptions on the installments paid on the mortgage loan.
• Real estate revenues must be greater than the installments to be paid to avoid negative cash flows.
• The value of real estate increases with time, allowing the purchase of other properties.

Significant points must know before making a real estate investment

• Determine the budget accurately. Instead of writing a theoretical budget, rely on a friend who owns a similar project to show you the actual expenses in the establishing stage and the subsequent taxes and expenses in the operational stage.
• Do not rely on information from one source, take your time to search for information, but avoid missing out on good investment opportunities.
• Visit the project site and look at it closely, make sure that it is close to transportation, hospitals, schools, .. etc. and all the things that you think are necessary for you.
• Determine the most appropriate location to start. Each region in Istanbul has a specificity that distinguishes it from other regions.
• Determining the client that you target with your activity and the regions in which he wishes to live, and this depends mainly on your relations, as it determines your main clients, especially in the first period of the project’s life.
• Focusing on the people of the country as a basic segment, as they are the biggest and largest consumers of the real estate market, taking into account the regions in which they wish to live, and the quality of living they prefer.
• Before buying, search online for properties for sale in the region.
• Beware of fraud and seek the help of people with experience and knowledge, and deal with licensed parties only.
• Inquire about the company developing the project in which you wish to purchase, and beware of companies that do not have a previous history in the field.
• Ensure that you will be supported in obtaining water, electricity, gas and telephone.
• Inquiries about all expenses and taxes that must be paid.