Whether you are a seasoned property investor, or a first-time property investor, you might have heard about the outstanding profit potential in the Real Estate market in Istanbul. Being a busy city, Istanbul commands exceptional rental returns averaging 6%. Also, the value of properties has seen a 12.5% to 25% increase per annum.
The property market in Istanbul is boundless. There is a wide range of great real estate projects to choose from. As a foreigner, Istanbul offers you the opportunity of owning property at a low cost. Whether you are looking for houses, apartments, holiday homes, or luxury villas, you are in luck because you are sure to find a property that matches your taste and your budget!
These optimal conditions encourage any smart investor to make a move on the market, but Istanbul is a big city, and property advertisements are many, so this article will help you understand the property zones, and to pinpoint the best locations to make this move in 2021.
First off you must know the most active zones in the Real Estate market for foreigners. There are five zones, four of which cover the European side of Istanbul. The first extends from the Bosphorus to EyupSultan. The second comprises the areas of Kadıköy, Ataşehir, and Kartal in the Asian side of Istanbul. The third zone consists of Zeytinburnu. The fourth starts from Basin Express up to Avcilar. While the fifth and final zone extends from Esenyurt, through Beylikdüzü all the way up to Büyükçekmece.
When it comes to the best areas to invest in property in Istanbul, we generally recommend areas with urban regeneration projects where properties are decently priced and are located centrally. These locations in the city center are distinguished by high demand and limited supply. Due to limited development spots, you will see a good profit on your capital in only three years.
Furthermore, in a bid to encourage foreign investment in the local real estate market, the Turkish government exempts foreign buyers who choose to buy property in central areas, specifically in urban regeneration areas, from paying the 1% VAT (Value Added Tax) on their newly acquired property.
EyupSultan offers you the opportunity to own an affordable and brand new luxurious apartment with full modern facilities. The area is favorable as it is in the heart of Istanbul and is serviced by the new tram and metro lines. Also, the new university opening in EyupSultan adds value to your investment.
Katigane is also very centrally located. The limited supply in the area means your investment will only increase in value with time.
We also recommend investing in EyupSultan and Katigane because they are among the areas harboring most attention from the Turkish government in regards to infrastructure, developmental, and reconstruction projects, making these areas the rising stars in property investment.
The Maslak area is another fantastic option for you. The properties located in the Belgrad Forest promise you a life of tranquility and connection with nature while still being within close reach of the city center via the new Taksim metro line servicing the area.
Bomonti Sisli is also an area in the very heart of Istanbul with high demand and limited supply, constantly going up in profit.
Clients with a more limited budget falling between 100k$ and 150k$ will find their suitable home in projects located off the Basin Express Highway. The area is well connected to every area of Istanbul through its proximity to the TEM and E-5 Highways. The opening of the new metro line in this location also adds to the value of your investment.
When buying a property in Istanbul your main concern should be about where to buy, as prices vary immensely between regions. Properties on the European side tend to maintain their value. Get in touch with Turkey Advisors to secure your property in a prime location in Istanbul today.