Istanbul and Alanya are two popular destinations for buying real estate in Turkey. It differs from each other in their lifestyle, as each of these cities has an individual flavor. Its real estate markets also have their own peculiarities.
In this article, we will compare Istanbul and Alanya from the point of view of real estate buyers: consider housing prices, its potential profitability, as well as the level and lifestyle in these two locations.
Content:
- Features of Istanbul
- Advantages of Istanbul
- Disadvantages of Istanbul
- Cost of living in Istanbul
- The cost of renting and buying a property in Istanbul
- Features of Alanya
- Advantages of Alanya
- Disadvantages of Alanya
- Cost of living in Alanya
- The cost of renting and buying a property in Alanya
- Comparison of Istanbul and Alanya
Features of Istanbul
Istanbul is one of the oldest and largest cities in the world. It is the commercial and industrial center of Turkey. It is located on the west coast of the country and consists of two main parts: European and Asian. It is connected by several bridges across the Bosphorus Strait. The abundance of tourists and foreigners with a permanent residence create a unique multicultural environment in this metropolis. The combination of different styles makes life in Istanbul extremely interesting and attracts those who want to live in an eternally noisy city, where many different events take place every day.
Advantages of Istanbul
The advantages of buying a property in Istanbul are as follows:
- the possibility of getting a residence permit in Turkey;
- the opportunity to apply for Turkish citizenship if the necessary conditions are met;
- a wide selection of real estate for any budget: here you can find both real estate on the secondary real estate market and off-plan projects in Turkey;
- availability of universities and schools, including international ones, hospitals and other social facilities necessary for life;
- variety of attractions and tourist spots;
- huge tourist flow stimulating demand for rental real estate;
- developed labor market, which increases the demand for long-term rentals;
- annual growth of real estate in price.
Istanbul is divided into 39 districts, each of which has its own unique features. This diversity allows investors to choose an individual strategy when investing in local housing. For example, in 2022, Beyoglu, where the main tourist attractions of the metropolis are located, showed an incredible 202% increase in real estate prices. A new M7 metro line has been launched in Kagithane, which has led to an increase in the cost of local housing by 75.6% over the year. In 2024, another metro line, the M12 metro line, will be put into operation. There is no doubt that real estate prices will also rise in the neighborhoods adjacent to it – both for sale and rental. The more remote parts of Istanbul still retain relatively low prices for residential space. Here you can pick up budget development projects in Turkey for the sake of your own residence, resale or rental.
Disadvantages of Istanbul
The disadvantages of the city are as follows:
- heavy traffic on the roads;
- higher crime rate compared to Alanya;
- high real estate prices;
- higher living expenses than in Alanya;
- the inability to obtain Turkish citizenship by buying real estate in some areas of the city due to the increase in the number of immigrants compared to the Turkic-speaking population (in accordance with the new laws of 2022 and 2023).
Cost of living in Istanbul
Next, we offer you to get acquainted with the financial aspects of life in Istanbul:
- average monthly expenses for a family of four are 40,890 TL ($2,090) (excluding rental price);
- average monthly expenses per person are 11,524 TL ($590);
- rent in Istanbul is on average 11.1% lower than in Madrid;
- utilities are 1,619 TL ($82,790).
The cost of renting and buying a property in Istanbul
- rent of apartments in the city center –15,391 TL ($787);
- rent of apartments outside the center – 10,178 TL ($520);
- average purchase price in the center – 58,366 TL ($2,984/m2);
- average purchase price outside the center – 31,025 TL ($1,586/m2);
- rental yield – from 5.78% to 7.11% per year.
Features of Alanya
Alanya is a tourist city in the south of Turkey on the shores of the Mediterranean Sea. It is considered an important tourist center.
The climate is very favorable here and there is never snow. Due to the compactness, the population is very small.
People who want to live in a coastal city, away from the hustle and bustle, definitely should pay attention to Alanya.
Advantages of Alanya
The real estate market in Alanya in 2023 is in a state of growth. The demand for apartments in Turkey in this popular tourist destination remains high. According to current data, over the past year, the average price per square meter in Alanya has increased by 5%. The number of sales at the same time increased by 2% compared to the previous year.
The growing demand is explained by the popularity of Alanya as a tourist destination, the high standard of living in the city and good prospects for economic growth.
What advantages does Alanya offer for investors?
- affordability of real estate prices is one of the main advantages of the city;
- low living cost. Alanya has a fairly high standard of living, but products and services are relatively cheap;
- well-thought-out transport system. Due to the efforts of the local government aimed at optimizing traffic and infrastructure, you can comfortably move around Alanya without getting behind the wheel of a personal car;
- Alanya is one of the warmest regions of Turkey. The city is protected from the cold northern winds by the coastal highlands, due to which residents can enjoy a warm climate all year round;
- the opportunity to obtain citizenship on condition of investing at least $400,000 in real estate.
Disadvantages of Alanya
Despite the many advantages of buying an apartment in Alanya, there are disadvantages that should be taken into account. However, it is reasonable to note that they are minimal and do not outweigh the numerous advantages of owning real estate in this popular resort location. Some of the disadvantages are as follows:
- seasonal fluctuations in rental income;
- limited rental demand during off-peak seasons;
- possible difficulties with managing real estate at a distance;
- it is difficult to find a real estate management service.
Cost of living in Alanya
Let’s consider the financial side of living in Alanya:
- average monthly expenses for a family of four are 30,522 TL ($1,560) (excluding rental price);
- average monthly expenses per a person are 8,604 TL ($440);
- utilities are 791 TL ($40.45);
- life in Alanya is on average 20% cheaper than in Madrid (excluding rental price);
- rent is on average 23% lower than in Madrid.
The cost of renting and buying a property in Alanya
- rent of apartments in the city center – 13,274 TL ($678);
- rent of apartments outside the center – 10,192 TL ($521);
- average purchase price in the center – 37,502 TL ($1917/m2);
- average purchase price outside the center – 34,718 TL ($1,775/m2);
- rental yield – from 6.24% to 7.34 % per year.
Comparison of Istanbul and Alanya
According to the following aspects, life in Istanbul is more expensive than in Alanya:
- consumer prices – by 27.1% (excluding rental price);
- rental price – by 15.5%;
- prices in restaurants in Istanbul – by 5%;
- food products – by 34.9%;
- purchasing power of locals is 8.9% higher than in Alanya;
- utilities are 104.8% more expensive in Istanbul.
If you are looking for a more secluded and relatively affordable place in Turkey with a high standard of living and resort conditions, Alanya will be an excellent option.
From the point of view of buying rental real estate, Istanbul remains a more promising option. The cost of 1 m2 of real estate in Istanbul, in the city center, is 55.6% higher than in Alanya, but the cost of housing outside the center is 10.6% lower. Rental rates are 15% higher in Istanbul than in Alanya. Given the high demand from tenants, as well as a steady increase in prices, investments in houses and apartments in Istanbul will bring higher profits in a short time. The demand for rental housing here is year-round and does not depend on the season.
If you are interested in apartments and villas in Turkey at prices from the developer, check out the range of properties on the website of Turk.Estate. Contact our consultants by phone or live chat to find out all the characteristics of a particular area of Turkey that interest you, local laws and other aspects related to the purchase of Turkish real estate.