Natalie Many first-time foreign investors ask if buying property in Istanbul is a good idea. Our answer is yes; however, your question should be how to make a good investment. With most foreign buyers heading to residential rather than commercial properties, the city is about much more than apartments and holiday homes by the sea.
The city leads the country in forward-thinking trends and is more prominent and colourful than the political capital of Ankara. Given its diversity and complexity, foreign buyers must research before signing the dotted line. Investment property requires skill and knowledge to ensure a decent ROI, and Istanbul is no exception. So, here is what you need to consider before entering the vibrant real estate market.
Why Buying Property in Istanbul is a Good Idea
Geographical Facts about Istanbul – Asian and European Sides
Before you search for apartments for sale, it is worth knowing some geographical facts. After all, this is Turkey’s largest city, with 39 official districts covering 2,083 square miles and a population of 18 million, so getting to know the locations will help you search.
Location: Istanbul is located in northwestern Turkey. It uniquely spans two continents—Europe and Asia—divided by the Bosphorus Strait, making it a transcontinental city. Good bridges and ferry services connect both sides. Asian Istanbul is home to the financial centre, the headquarters of Turkey’s central bank.
Bosphorus Strait: The Bosphorus is a narrow, natural strait that separates the European part of Istanbul (Thrace) from the Asian part (Anatolia). It connects the Black Sea to the Sea of Marmara and is essential for international maritime traffic. To own a home on the shores of the Bosphorus is to join Istanbul’s elite circle.
Golden Horn: The Golden Horn estuary divides European Istanbul into the historical peninsula (to the south) and more modern districts (to the north). Thanks to their central location, neighbourhoods like Eyup are popular with prospective buyers.
Proximity to Water Bodies: Istanbul is close to other significant bodies of water, such as the Black Sea to the north and the Princes’ Islands. Homes here have prestigious status, thanks to their connection to Ottoman times, and the sales price is often POD.
1: Foreign Nationalities who Buy in Istanbul
Turk Stat, the Turkish statical guide, say the foreign nationalities buying into the housing market are Iranians, Iraqis, Russians, Afghans, Azerbaijanis, Germans, Kuwaitis, Yemen, Kazakhstanis, and Brits. In addition, over the last two years, there has been increased interest from other nationalities, including Americans, Canadians, and the Swiss.
This proves that Istanbul is an all-rounder, attracting home buyers from all over the globe. For 2023, Turk Stat, the national statistics portal, shows that 12,000 homes in Istanbul were sold to foreigners. The only people who cannot buy houses in Turkey are Syrians, Cubans, Nigerians, Armenians, and North Koreans.
2: Why Istanbul is a Good Investment
REAL ESTATE PRICES: Istanbul is known for low, affordable prices compared to other major cities like Paris, New York and London. According to Endeksa, the portal that collects data from house sales, the average cost per meter for the whole of Istanbul is 1142 Euros. The most expensive district for property prices is Sariyer, which is 3224 euros per square meter, and the lowest purchase prices are in Esenyurt, which is 546 Euros per square meter.
PORTFOLIO: Covering both the Asian and European sides, the wide range of modern apartments and villas for sale sit in prime locations. International buyers don’t have to compromise and will find residential properties that align with their budget and lifestyle dreams. Foreign buyers are surprised at what they get for the average house prices.
QUICK PROPERTY OWNERSHIP: Foreign property buyers are often surprised at how quickly the sale process happens. If finances and paperwork are in order, you can sign for the title deeds within a week. The additional costs are roughly 6%, so buying a home doesn’t break the bank. All sales must go through Turkish banks, and there is a set notary and land registration procedure, so follow the legal guidelines for the real estate sector.
TRANSPORTATION NETWORK: As Turkey’s largest city, Istanbul’s strategic location is home to the country’s best public transportation network. The government has invested billions in upgrading roads, highways, and bridges, from state-of-the-art airports to the metro line.
RENTAL MARKET: Out of all the Turkish cities, Istanbul is prime for rent investments. The strong market attracts university students, professional workers, and holidaymakers. Rental prices vary across the city, but central locations like Beyoglu net a good rent ratio yield. Naturally, with long and short-term rents, there is the opportunity for 100% occupancy rates. Additionally, even though Istanbul has the highest cost of living in Turkey, the maintenance and upkeep of homes is a fraction of those abroad, and annual property taxes are low.
POPULAR DESTINATION: Istanbul is an attractive destination for everything except foreign investment. Of course, tourism reigns supreme thanks to iconic landmarks like the Hagia Sophia, but this is just one face of the city. Education, health, business, finance, and the economy revolve around this city, so opportunities sit on every corner. You have to be quick enough to spot them.
PROPERTY VALUES: Regarding the potential for capital appreciation, this vibrant city shows an increase of 10% in the real estate property market. Regardless of what the market is doing, Istanbul will consistently deliver for a mid-to-long-term investment, thanks to its status as an alpha city. Additionally, there are no capital gains taxes if you hold the residence for at least five years.
VIBRANT CULTURE AND MODERN TRENDS: Putting aside property purchases, life offers lively atmospheres and cultural scenes. From the city centre to the outskirt districts, the food, history, traditions, and way of life combine the new and old. The cultural heritage is there to see, but locals embrace modern living with open arms. It is a good city for permanent residents.
3: Best Areas for Investment Property
Besiktas: Mostly associated with the high-ranking football culture, Besiktas offers family-friendly, prestigious urban environments. The residential atmosphere in European Istanbul attracts working professionals who commute to nearby Levent neighbourhood. Other prominent neighbourhoods include Ortakoy and Bebek.
Esenyurt: Sitting inland, Esenyurt attracts investors looking for ideal capital appreciation thanks to affordable property prices and massive investment by the local council into transport and community features. Often, budget buyers start their property search here.
Beylikduzu: This seaside location did an excellent job of maintaining green spaces, something other neighbourhoods have been vastly criticised for. Additionally, areas like Gurpinar are ideal for a weekend getaway holiday home for Istanbul locals.
Kucukcekmece: This hotspot faces the Marmara Sea and sits beside a lake. Most overseas investors chose the neighbourhood because of its location near the planned Istanbul canal route.
Buyukcekmece: For decades, Buyukcekmece was a popular getaway for Istanbul locals, but these days, it does just as well at attracting foreign real estate investors. Buyukcekmece’s 26 kilometres of coastline attracts those who want a life by the sea. Beautiful new build construction projects happen here.
Tarabya: This neighbourhood sits in the Sariyer district, a prestigious area with a high-profile real estate market. Tarabya is known for nightclubs and seafood, and the site is close to Nisantasi, Istanbul’s most exclusive neighbourhood for real estate purchases. Anyone searching for luxury property would do well to look at Tarabya.
Beyoglu: Ah, Beyoglu, the heart of new Istanbul, or Taksim. This central area includes Istiklal Avenue, Turkey’s busiest and longest high street. Anyone looking at Beyoglu is assured of the best of Istanbul’s nightlife and shopping opportunities. The property type is unique because it features 19th —and 20th-century Art Noveau architecture trends.
Sancaktepe: Unlike the other places listed, Sancaktepe, on the Asian side, is just a 20-minute drive from Sabiha Gokcen, one of Turkey’s most prominent airports. An enormous part of Sancaktepe is dedicated to green spaces, and the neighbourhood is just a 20-minute drive to the Uskudar ferry port, which connects it to European Istanbul.
Kadikoy: Also in Asian Istanbul, Kadikoy is a ferry hub. The Turkish property market includes pricey seaside properties or homes further inland present more affordable prices. Kadikoy’s profile has risen recently, and homebuyers expect the best in shopping and nightlife. Types of property range from budget apartments to brand-new construction villas.
Bakirkoy: As one of the oldest residential districts on the European side, Bakirkoy attracts middle-class families, and Turkish companies base their headquarters there. The region offers excellent shopping opportunities and sales prices, and Beyoglu is just a 30-minute drive away. (More about the best areas in Istanbul.)
4: Is Air BNB Legal in Istanbul?
Like other countries, Turkey introduced rules and regulations regarding short-term rental properties. Landlords can rent their homes for 100 days for tourism purposes. To do this, landlords must apply for a licence and obtain the permission of other owners if the property is on a complex.
The license, called the Tourism Accommodation Rental Permit, must be displayed on the premises. Landlords must submit the details of all occupants under the Identity Notification Law. An income tax of 10% for earnings over a certain threshold exists. For international investors specialising in short-term rent, you might be better off looking at branded hotel residences.
5: Can You Live in Istanbul if You Buy Property?
Real estate investments and applying for residency are two separate aspects. However, for potential buyers who want to apply for residency based on property ownership, your home must be worth $200,000, according to official valuation reports. Please note that if you are buying property to live in Istanbul city centre, make this known to us when purchasing because certain districts restrict residency applications if the total number of foreign residents is over 20%.
6: Is it Safe to Buy Off-plan Property?
Yes, it is. Construction companies must have financial insurance from a certified Turkish bank and follow strict building regulations with four stages of inspections. Real estate buyers tap into cash discounts and long-term, interest-free payment plans. Each buyer can purchase 30 hectares of Property, and off-plan properties are usually in outskirt districts of European Istanbul.
7: Where is the Luxury Side of Istanbul?
Luxury real estate centres around the shores of the Bosphorus. Neighbourhoods like Bekek and Besiktas are high-end destinations. The range of properties varies from luxury penthouse apartments to detached villas to large mansions called Yali homes that sell for over 50 million dollars. Property owners are celebrities in some neighbourhoods, while others are wealthy retirement enclaves. Luxury apartments in Istanbul’s city centre have amazing Bosphorus views worth visiting.
8: What is the Turkish Citizenship Program?
Many foreign nationals flock to Istanbul for the citizenship by property investment program. Firstly, they buy a property with a minimum investment of $400,000, apply for a residence permit, and then apply for citizenship, which grants them the same rights to live, work, and study as Turkish citizens.
For city living, spend all year round here, but there is no strict requirement on the number of days you must be resident. Additionally, keep existing passports for dual citizenship. Out of all the golden visa schemes in the world, this is an attractive option for investors, and the affordable costs of applying make it a cheap citizenship-by-investment program.
How to Buy Property in Turkey
When looking at real estate options, know there is a vast choice, and the buying process is quick and easy to complete if all finances and paperwork are in place. To search for investment opportunities, browse our portfolio of apartments and villas for sale. Each listing contains everything to know, including price, location, home features, and contact details to find out more or arrange a viewing.
Once you have found your dream property, we act as your real estate agent. We complete the whole process from start to finish. While Turkish law does not require a solicitor or military clearance, we recommend employing one. They will draw up a contract between you and the seller. We help obtain tax numbers, bank accounts, notaries, and land registry applications. If everything is in place, you can sign your title deeds and receive the keys in a week.
We hope this comprehensive guide on whether buying Property in Istanbul is a good idea has helped you. If you still have more questions, call us today. In addition to showcasing properties for sale, we will guide and support you in your home-buying endeavour in this bustling city.
Also About Istanbul – Turkey
Tallest Buildings in Istanbul: In Istanbul, the drive to build tall buildings isn’t letting up. In the outskirt districts, many new large lifestyle complexes feature 20-plus floors. Constructed using steel or reinforced concrete, they provide structural strength to support their height, and be homes to millions of Istanbul locals.
