Rising real estate prices in Istanbul: what investors need to know?

In Istanbul, there has been a significant increase in real estate prices. In August 2023, the average price of homes exceeded 4 million lira (approximately 147,960 USD), marking an impressive 92% increase compared to the same month in 2022. There has also been a sharp rise in rental rates: in July 2023, a growth of 109.5% was recorded. This situation has made Istanbul one of the most sought-after cities in Turkey for real estate investments. As of today, the minimum rental price for apartments of 100 square meters reaches 16,000 lira, which is about 540 euros.

Areas for investment

When talking about investment opportunities, it's worth highlighting three main areas of the city. The first two are located along the Bosphorus on both the European and Asian sides. On the European side, notable districts include Beyoğlu, Maslak, Beşiktaş, Sarıyer, and Şişli. The Asian districts that should also be mentioned are Beykoz, Üsküdar, Kadıköy, Ataşehir, and Adalar. In these listed locations, you can purchase 1+1 apartments with an area of about 55 square meters, starting at prices of 450 thousand dollars.

Infrastructure development

In addition, new projects initiated by local authorities are actively developing on both sides of the Bosphorus. As part of these initiatives, new residential complexes are being built, and old buildings are being renovated. For example, in European Istanbul, this affects areas such as Kagithane, while on the Asian side, it involves Fikirtepe. These locations attract investors due to their convenient location (proximity to the center), relatively low prices (a mortgage for a 1+1 apartment can be obtained from $250,000), and the promising growth in value after the renovation work is completed.

Less central areas

The third group includes less central areas such as Başakşehir, Basin Express, Beylikdüzü, and Çatalca. If your goal is to increase property value, then investing in these areas may be less profitable.

Requirements for seismic resistance

When choosing earthquake-resistant housing, it is important to consider not only the existing trends but also the stricter construction requirements introduced after the earthquake in February 2023. Following this tragedy, the rules for building construction have become significantly more stringent. Now, every developer must have a licensed certificate confirming the seismic resistance of the buildings, as well as the results of geological surveys. Moreover, the quality control of construction materials has become more rigorous, with regular checks on the parameters of cement and metal structures.

Building safety

In addition, the city authorities have decided to demolish 80,000 unsafe buildings that do not meet modern standards. This means that before purchasing real estate, it is crucial to find out the age of the building; the best option would be a construction completed after 2018, when new seismic resistance regulations came into effect.

Potential profit from investments

In Istanbul, there is an opportunity to profit both from the increase in property value during construction (up to 25%) and from renting out the apartment, where the average yield ranges from 7 to 10% per year. However, it is important to consider that property management companies in the Istanbulreal estate market charge owners an average commission of 18-20% of the total income.

Obtaining a Turkish passport through investment

Obtaining a Turkish passport through real estate investment has become an exceptionally popular route for many. The minimum amount for such operations is400 thousand US dollarsRegarding the estimated value of properties. Investors can choose both ready-made apartments and houses, as well as new constructions. It is important to note that before signing the contract, the developer is required to provide a tapu — a document that serves as proof of ownership of the property.

Key points of citizenship registration

When applying for citizenship, special attention should be paid to the amount specified in the contract, which should not be lower than400 thousand dollarsA significant advantage of Istanbul is that the real estate prices in this metropolis are close to the official cadastral value. This allows buyers to avoid overpaying, which is quite a common occurrence in coastal regions, where the price difference for properties can be substantial.50%.

Conditions for purchasing real estate

The conditions for purchasing real estate in Turkey are quite liberal: there are no strict limits on the number of properties that can be acquired (you can buy either one or several) or on the type of real estate—residential, commercial, or land plots. Additionally, there are no stringent ownership requirements, allowing for the possibility of renting out the property. However, there is an important rule:

• Each object can belong to only one owner, regardless of its value.
• Even if the property value exceeds800 thousandorone million dollarsFor three years after its purchase, it cannot be sold in order to keep the obtained passport.

The beginning of the citizenship application process

If you intend to initiate the citizenship application process, you can start it right after the full payment for the property worth at least400 thousand dollarsPlease note that money transfers for purchases continue to come through banks that are not under sanctions, often via one well-known bank that operates in Russia. Some developers in Turkey have opened accounts in Russian banks or even established offices in Russia, which facilitates the payment process, including the ability to transfer rubles to sellers' accounts. Recently, there has been a noticeable increase in interest in transactions using cryptocurrencies.

Documents for processing

Payment for the property must be made exclusively in the name of the primary applicant. After that, the property is registered in the cadastral register, and a complete set of necessary documents is prepared, which will be sent to the citizenship authority. The standard set of documents includes:

• original birth certificates of all family members,
• a copy of the marriage certificate with an apostille,
• copies of passports,
• receipt for housing payment,
• biometric photos.

Apostilling documents is possible both in Russia and in Turkey.

Without personal presence during the transaction

The real estate purchase deal and the submission of documents for citizenship can be carried out without the mandatory presence of the buyer. It is sufficient to grant a power of attorney to a lawyer at the Turkish consulate located in your country. This greatly simplifies the process of obtaining citizenship for those who wish to purchase property in Turkey.

Conclusion

In conclusion, it is important to emphasize that the real estate market in Istanbul remains one of the most attractive investments in Turkey. The sharp rise in housing and rental prices in recent years indicates a growing interest in this city, which continues to develop and attract attention from both local and foreign investors.

We see that choosing the right area, whether it's the historic Beyoğlu or the developing Kağıthane, can significantly impact the increase in value and potential profit.

Key factors for investors

• Location:Historical and developing areas.
• Seismic resistance:Buildings constructed after 2018 provide a high level of safety.

Advantages of obtaining citizenship

Moreover, the advantages of obtaining citizenship through real estate investment create additional incentives for purchasing. The process is quite transparent and convenient, and the possibility of using affordable local services makes it even more accessible.

Important points for investors:

• Prospects for real estate price growth.
• The possibility of obtaining citizenship through investment.
• Verified and secure payment methods.

If you are considering investing in Istanbul, keep in mind the potential for price growth as well as the opportunities for obtaining citizenship. Istanbul has not only beautifully preserved its history but is also ready for the future, making it an ideal place for real estate investments. I hope this information helps you make an informed choice and find the living space of your dreams in this amazing city.