Foreign investors who want to know reasons to invest in Istanbul can easily be pleased with the long list that works in their favour. Turkey's largest city, straddling two continents, provides a natural gateway between the East and the West and has always been a focus for real estate markets and foreign investment. The investment opportunities are bountiful, ensuring that Istanbul always matches other significant cities for returns.
Additionally, types of investment vary, but most international buyers opt for property rather than commercial business, private sectors, or tourism investments. Istanbul's fan base is a global phenomenon, flocking from European cities, central Asia, the Middle East, as well as domestic markets. So, let's look more at the investment environment and areas with historical records of returning that investment tenfold.
Why Invest in Istanbul
1: Continued Growth
As a European financial centre, Istanbul has come to the fore, because the city never stops. Prioritising the engine of growth over pleasure, the city constantly reinvests back into the community and always sees a climbing GDP per capita. The result is a growing tourism industry, a growing business sector, and a dominance of finance.
Strong economic performance, increasing population, booming tourism industry, and many other factors contribute to one thing: property price increases. In the last five years alone, districts and areas have been abundant where home prices have more than doubled due to an influx of investment, development of infrastructure, and gentrification. The gains can be stratospheric if you purchase in the right area at the right time.
2: Strategic Location as an Alpha City
The strategic location between Middle Eastern and European countries already marks Istanbul’s high value and importance. This makes it an Alpha City, sometimes called a power or global city. A city that serves as a primary node in the international economic network is the critical factor in achieving this status. Classification is based on economic, political, and cultural importance. Istanbul sits among other global cities like London, New York, Madrid, Beijing, and Dubai, proving its worth to Turkey and the globe.
3: The Turkish Economy and Major Companies
Many multinational companies base themselves in Istanbul because it is to the Turkish economy what London is to England. This is the pinnacle point, much to the surprise of many who think the capital of Ankara is. Airline companies base themselves here, making Istanbul the aviation industry hub. International trade routes are well-performing oil machines for shipping goods worldwide, even to North America, South Korea, and North Africa.
The attractiveness for business is hard to deny, and various sectors have flocked here, from the financial industry to tourism, education, and beauty sectors. Accessible markets are everywhere, providing many options for investors besides real estate. Foreign trade volume runs into billions, and specific fields like science and education also add value.
4: Mega Projects in this Prime Destination
Istanbul Airport, where Turkish Airlines is based, offers four terminals and six independent runways to carry an annual passenger capacity of 150 million by 2028. This $4.8 billion project eases passenger flow and sees tourist numbers rise significantly along with new flying routes. This is undoubtedly an amazing international airport.
Costing 4.5 billion Lira to construct, the Yavuz Sultan Selim Bridge, with 10 lanes, is the widest suspension bridge. The Eurasia Tunnel reduced travel times from 100 minutes to 15 minutes, easing travel between Europe and Asia.
The financial centre, the new home of Turkey’s Central Bank, Borsa Istanbul, and the headquarters of Turkey's top banks, including Ziraat Bank, Halk Bank, and Vakifbank provides distinct areas for culture, business, civic, and governance. Included are 45 million sq. feet of office, residential, retail, conference, hotel, and park space.
5: Citizenship by investment program
The investment citizenship program is among the world's best regarding entry-level costs and processing times. With a minimum entry level of $400,000, the real estate investment program offers the full rights for the applicant and their family to live, work and study as a Turkish citizen, alongside numerous benefits like visa-free access to other countries.
The Turkish citizenship program takes six months to process, and applicants can also maintain dual nationality and don’t have to live in Turkey full-time. Additionally, the comparative costs of applying are highly affordable. This makes it an ideal real estate investing scheme. Applying is easy with copies of certificates relating to life circumstances like birth, death, and marriage. Other than that, all you need is a clean criminal record.
6: Excellent Portfolio of Property for Sale
Whether you want to look at apartments for sale on a residential complex, somewhere near transportation hubs, or a gorgeous luxury villa with quick access to the Black Sea region, Istanbul can deliver the potential for capital appreciation for all real estate investors. The market is awash with off-plan and new build constructions, with industry leaders incorporating significant discounts for cash buyers.
Additionally, the choice is fantastic, as there is a wide range of resale and heritage homes for sale. Prices across districts vary per square metre. You can see the wide range of property options here. Each listing contains everything to know, so fill in the contact form to find out more via email or to arrange viewings. Remember that if you keep the property for at least five years, you won't have to pay capital gains tax.
Where to Invest - Established Areas
In a city as large as Istanbul, knowing where to invest is the key to successfully navigating and climbing real estate ladders in Turkey. Established markets offers premium homes at premium prices – and for someone looking for high rental income and economic performance, the established regions provide an abundance of houses and places to choose from.
Beyoglu: The heart of European Istanbul, Beyoglu, is full of history and a major business hub. Beyoglu properties don't come cheap; they are priced at a premium and require significant capital, although the returns can be extremely high. On the lower scale of Beyoglu property, you can find lower prices in areas undergoing regeneration—Galata, Tarlabasi, and Gumussuyu. The public transportation here is excellent.
Besiktas: Situated along the Bosporus shore, Besiktas is an upper-class area home to several historical sites and a flourishing business district. As an expensive area with high rental prices, the average payback in Besiktas is under 17 years. Popular neighbourhoods for real estate buyers include Levent, Bebek, Etiler, and Ortakoy.
Bahçeşehir: Nicknamed the garden city, Bahçeşehir, is a well-planned and thought-out city suburb that offers quality homes surrounded by green areas and a peaceful lifestyle. Conveniently located with excellent public transport links, Bahçeşehir is popular amongst middle-class families. Property prices in Bahçeşehir have doubled since 2005 and are still rising, with impressive rental yields and bargains.
Kadikoy: One popular district in Asian Istanbul, Kadikoy is an upper-class residential area home to many projects catered towards high-end living. Kadikoy is also a famo0us ferry port, linking the districts to other areas in European Istanbul.
Major Urban Regeneration and Transformation
Istanbul’s rapid transformation into a behemoth city with more than 17 million residents, doubling since 2000, was not without problems. The speed at which the town developed left behind urban issues and areas where development was not at the standard required, with poorly built construction leaving homes that were susceptible to elements.
To combat this, the government-backed Kentsel Donusum (Urban Transformation) was introduced to redevelop central areas into prosperous new centres, essentially bringing the areas back to life and putting them at the forefront of development. The Turkish government presents urban regeneration as essential for Turkey's economic growth. It began just over a decade ago and is happening all over the city and inner-city areas.
Urban Regeneration opens a wealth of new opportunities as neighbourhoods smarten up with new lifestyle facilities, infrastructure, shops, and cinemas, becoming upmarket and trendy locations where prices are only going to head one way—up. Top picks for investors looking to capitalise on Kentsel Donusum include:
Bomonti: In Sisli's old quarter, Bomonti is just a kilometre from Nisantasi Street. It is an area that has undergone massive redevelopment and transformation from a rundown working-class part into a centrally located flourishing hotspot for luxury living. Home to the Hilton Hotel, home prices in Bomonti reach the same levels as nearby Sisli and Nisantasi, just a few km away.
Eyup: In an area where urban regeneration is happening at a steep pace, Eyup house prices will rise considerably to reach the same levels as neighbouring districts, making it worthwhile to invest now. Full of luxury facilities and on-site social areas, this project offers advantageous payment plans and discounts for cash buyers and will rise in value upon completion.
Kagithane: Located in Sisli, Kagithane is currently undergoing massive regeneration. A quarter of all properties here are rebuilt, providing investors with around 45,000 houses. The regeneration will also focus on infrastructure and city centre links. Pick up an off-plan apartment in Kagithane today and enjoy favourable terms and prices that will only rise upon completion.
Use Our Services
We are Property Turkey, and we help international investors buy homes in Istanbul. This destination for property investment has many opportunities, and we are experts at matching buyers with their ideal homes. Call us today, let us know your budget and criteria, and we will send you a portfolio of real estate sectors for property values and investing, as well as more reasons to invest in Istanbul.
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