Istanbul Real Estate Trends: What Buyers and Investors Need to Know

Istanbul’s location on two continents reflects its rich cultures, trade, and investment opportunities. Its prime location and rich history have attracted both domestic and foreign investors looking for opportunities in the real estate market. In this essay, we’ll explore trends of the Istanbul real estate market.

Istanbul’s Increasing Residential Costs

Istanbul’s real estate prices are becoming an issue, especially for young people and first-time homebuyers. Real estate costs have increased as a result of the housing supply not keeping up with the rising demand in a number of ways.

The cost of residential real estate in Istanbul is expected to rise by an average of 11% between 2010 and 2020. This is according to the Central Bank of the Republic of Turkey. As a result, it is sensible to consider real estate investments early given the rising cost of real estate.

The Link Between Continents and Commercial Real Estate Investment Opportunities

Istanbul’s business real estate sector has expanded significantly along with its residential real estate market. International organizations and corporations are drawn to the city. Due to its prime location as a point of intersection between Europe and Asia. As a result, businesses are anxious to expand their presence there. Businesses are looking for commercial real estate in Istanbul as a result. Demand for office space and commercial retail is anticipated to increase as Istanbul develops into a center of trade and commerce.

According to data from the Central Bank of the Republic of Turkey, foreign direct investment (FDI) has been steadily increasing in Turkey. By 2020, Turkey had received nearly $22.1 billion more in foreign direct investment (FDI) than it had in 2010, which was roughly $9.1 billion.

Istanbul’s Tourism Potential: Investment Opportunities in Short-Term Rentals

Istanbul is a popular tourist destination due to its rich cultural past, historical sites, and vibrant atmosphere, in addition to real estate developments. The growing number of visitors and rentals of apartments by tourists has had a considerable impact on the city’s short-term rental market. Tourists looking for unique and local housing options are increasingly embracing housing marketplaces like Airbnb. Istanbul was one of the top 10 most often booked cities globally in 2020. This is according to Airbnb data, with more than 3 million visitors. As a result, it is important to consider Istanbul’s short-term rental real estate. The growing trend in short-term rentals offers a terrific investment opportunity to benefit from the tourism industry and offer alluring rental returns.

The Real Estate Landscape Was Transformed by Turkey’s Mortgage Program

The Turkish government has been actively encouraging the sale of real estate through various incentives and alluring lending arrangements. In order to increase access to mortgage funding for real estate property owners, the government introduced the “Mortgage for Everyone” program in 2012. By offering lower property interest rates and longer payback terms, the initiative made it easier for people and families to invest in Istanbul and buy real estate.

According to data from the Turkish Statistical Institute (TurkStat), the number of housing loans in Turkey increased. Ranging from around 935,000 in 2010 to nearly 2.6 million in 2020, proving the success of these programs in boosting the real estate market.

Istanbul’s Airport Development Improves Property Prospects: Route to Growth

Istanbul’s transportation system is one of the major elements affecting real estate values. The city’s public transportation system has received significant government funding improvements. This includes the building of additional metro lines, bridges, and tunnels. As a result, this significantly increased the value of Istanbul’s real estate market.

One undertaking is Istanbul’s newest airport, which debuted in 2018. The operator of Istanbul Airport estimates that if it achieves capacity, the airport will contribute roughly 4.9% of Turkey’s GDP. Increasing the value of real estate properties as a result.

Currency fluctuations

The future of real estate in Istanbul could be impacted by a number of issues, notwithstanding the optimistic view. Both domestic and international economic inflations can have an impact on housing demand and pricing. Foreign investment flows may be impacted by geopolitical unrest and tensions. Furthermore, the purchasing power of foreign investments may be impacted by the Turkish lira’s volatility against important currencies.

Conclusion

As a result of its advantageous position and booming tourism industry, Istanbul’s real estate market presents potential investment options. However, issues like escalating housing costs and geopolitical fluctuations need to be carefully handled. Making well-informed decisions will be essential in determining how Istanbul’s real estate market develops in the future.