Although the prices of properties in Istanbul regarded to be very low in comparison with many popular cities of the world, this city has one of the most expensive properties in Turkey and the prices, there, are soaring sharply. This only means that Istanbul property has been gaining a surprising value, and hence if you act quickly, you will make more profit out of your property for sale in Istanbul. People who have purchased a property in Turkey earlier are enjoying the fruits of their investments these days. If you are aiming at purchasing a property in Istanbul, you have made the right choice since this city offers numerous advantages. Investing in Istanbul provides considerable advantages for both domestic and foreign investors. Why do property prices in Istanbul skyrocket?
If you search the Turkey property prices of 5 years back, you will see unbelievable numbers which become one of the most trending topics among Europeans and Americans (see graph below).
Turkey’s Central Bank, for example, reported that the average price of a property in Istanbul had reached 1.6m Turkish lira ($110,000) in 2022, up from 750,000 Turkish lira last year. Istanbul has the top position among the Turkish states, with an annual increase in house price of 147% during the first quarter of this year 2022. Many domestic and foreign factors contribute to this sky rocking increase in the property prices in Istanbul such as its economic and social potentials, incentive circumstances of Turkey for attracting foreign investment as well as global events. Strategic location, sustainability and economic growth, nature as well as low cost of living in Istanbul offers special economic and social potentials to this city.
Being located in the middle of Europe, Eurasia, the Middle East, and North Africa, Turkey has a central location as it is. Istanbul has always been one of the most prominent cities in the world for centuries. It makes its residents so happy that it becomes impossible to leave Istanbul. The history, culture, and opportunities of Istanbul is in the dreams of people. The beauty of the city and the fact that it is the center of the country both economically and socially make an attractive choice for investors and those who want to buy an apartment for sale in istanbul. It is possible to reach millions of customers and investors around the world from Istanbul. If you are aiming at purchase a property for investment purposes in Istanbul, you can find a buyer or tenant with ease in this city, which is quite popular among foreign investors.
Sustainability and economic growth
Istanbul is the center of Turkey's economy. This city is the central point of domestic industrial and commercial activities as well as multinational companies and foreign investors. Being immersed in such a paradise of opportunity always makes your property attractive, leading to increasing demand for properties. Thusly, buying a property in Istanbul is one of the most risk-free investment moves.
As Istanbul is a very crowded and vibrant city, you should not be mistaken that the city is just chaos. With the deep blue sea and oxygen-rich green areas around the city, Istanbul also provides great property opportunities for nature lovers. You can purchase a house in Istanbul not only for investment but also for a life in nature.
Cost of Living
Compared to the most popular cities in the world, Istanbul is unbelievably suitable for living expenses (see chart below). Many foreigners lead a luxurious life in Istanbul, due to the changing exchange rate. You can take advantage of the golden opportunities of Istanbul by dwelling in your house or by using this property as an income-generating intermediary.
The current metro area population of Istanbul in 2022 is more than 15 million, a 1.43% increase from 2021. This population growth increases the demands for properties and as a consequence soaring the prices.
If you have a property in a vibrant city like Istanbul, you can sell this property at any time. Property in Istanbul keeps its value due to the city's fast pace, business life, and large projects. As time goes by, plenty of opportunities make your property even more attractive and valuable.
Incentive circumstances of Turkey for attracting foreign investment
In recent years, especially, after the decrease in the value of the lira against the US dollar, the government of Turkey has issued simplistic regulations for granting residency to foreign nationals aiming at attracting foreign investment and foreign exchange inflows into the country.
In November 2022, cheap home sales to outsiders increased by 40.6 percent in comparison with the previous year's average and 29.6 percent in comparison with November 2021 of the previous year. 18.8 percent of total property sales and 49.2 percent of cheap house sales in Turkey to foreigners were from Istanbul alone. Foreigners have more tendency to buy properties in Istanbul, Antalya, Ankara and Izmir. You can easily buy a luxury property in Turkey at affordable prices and make a profit when you sell it in the following year. Many outsiders have been buying property in Turkey; among them, those who have bought a property in Turkey earlier are enjoying the fruits of their purchase these days. Thusly, the construction industry is also booming in the city, especially in recent years.
Competitive prices of properties
Buying a property in London and many popular cities of the world is right around multiple times more expensive than in Istanbul.
As a foreigner, you can purchase a property with ease
In the past purchasing a property in Istanbul was a complicated process holding on to get a report. However, the government of Turkey has modified the procedure and made it easier than at any time.
You can gain citizenship by purchasing a property in Istanbul
The foreigners can gain Turkish citizenship for, in any event, $ 400,000 on the off chance that they purchase a property in Istanbul.
You can be a Resident in Turkey
Perhaps the primary motivation to purchase a property in Istanbul is getting a residence permit in this country. When you purchase a property in Istanbul and sign a document, you can apply for a Turkey residence permit. As an owner of a property in Istanbul, you have more freedom in this area. If you own property in Turkey, your travel to this country will be free. If you want to migrate to Turkey forever, a residence permit is not the only way.
Economic factors (Inflation)
Another factor in the increasing trend of the prices of properties in turkey is economic factors, especially the inflation rate. The significant increase in building material prices will affect not only under construction projects but also the prices of ready-to-move-in properties because the developer who sells fully prepared property must pay the increased construction material prices to start his new project.
Rental Price Increases
Raising real property prices to attract a larger rental return is an incorrect solution, but the opposite is true, which means that a high rental return qualifies any property to be sold at a higher price.