Istanbul Autumn 2024: Sales statistics, rental values and prices

The sales of property in Turkey have picked up this autumn, rising by 37.3% in September 2024 compared to the same month of the previous year, reaching 140,919 units sold. Istanbul accounted for a seventh of this volume, with 21,314 concluded transactions.

Istanbul, along with other metropolises and the most popular resorts, is the focus of property investors. However, many of them wonder where exactly they can find the most promising apartments for sale in Turkey. When choosing a neighbourhood, it’s important to consider your goals, whether you’re investing for a quick return on investment through renting, for resale or personal residence. The demand for neighbourhoods can be seen in the September statistics.

Content:

• Payback
• Rent
• Property for sale
• Average cost of property in different districts of the city:

Here's the breakdown of housing unit sales in different districts of Istanbul for September 2024, listed in descending order based on the number of sales:

• Esenyurt: 3,046
• Başakşehir: 1,032
• Pendik: 955
• Beylikdüzü: 884
• Kartal: 867
• Tuzla: 834
• Kadıköy: 819
• Umraniye: 748
• Sancaktepe: 739
• Maltepe: 738
• Bahçelievler: 727
• Küçükçekmece: 618
• Çekmeköy: 593
• Silivri: 580
• Avcılar: 574
• Büyükçekmece: 558
• Atasehir: 543
• Sultangazi: 503
• Fatih: 487
• Arnavutköy: 463
• Eyüpsultan: 445
• Sultanbeyli: 438
• Käythane: 437
• Gaziosmanpaşa: 436
• Usküdar: 393
• Bagjilar: 373
• Zeytinburnu: 356
• Şişli: 304
• Esenler: 295
• Bakırköy: 281
• Güngören: 231
• Beşiktaş: 227
• Bayrampaşa: 220
• Sarıyer: 195
• Beyoğlu: 175
• Şile: 93
• Çatalca: 44
• Beykoz: 38
• Adalar (Prince Islands): 24

Payback

Endeksa analysts have also provided an update on the payback period for property investments within Istanbul. This figure defines the payback period if the property is not just idle but rented out and it’s very important for choosing a neighbourhood. Istanbul's annual rent increases of 25% jumped particularly high after the summer's cancellation of the cap. This, in turn, could not help but positively affect the period of return on investment, reducing it.

Payback periods for properties located in different areas of the metropolis, from the longest period to the shortest:

• Beykoz — 28 years
• Beşiktaş — 23 years
• Bakırköy — 22 years
• Sarıyer — 21 years
• Şile — 20 years
• Kadıköy — 20 years
• Uskudar — 18 years
• Büyükçekmece — 17 years
• Zeytinburnu — 17 years
• Esenler — 16 years
• Şişli — 16 years
• Çatalca — 16 years
• Beyoğlu — 16 years
• Başakşehir — 15 years
• Arnavutköy — 15 years
• Sultanbeyli — 15 years
• Bağcılar — 15 years
• Avcılar — 15 years
• Maltepe — 15 years
• Bayrampasha — 14 years
• Cekmeköy — 14 years
• Sultangazi — 14 years
• Atasehir — 14 years
• Tuzla — 14 years
• Küçükçekçekmece — 14 years
• Pendik — 13 years
• Sancaktepe — 13 years
• Beylikdüzü — 13 years
• Esenyurt — 12 years

Now, let's delve into the numbers and trends.

Rent

Ankara, Istanbul and Izmir were among the top three cities where the most significant increase in property values was recorded. Rental prices here are increasing by 4% every month and that's the minimum. On average, rents in Istanbul have increased by 46–56% over the past year. The average price for an apartment in the city was TL 24,400 (USD 709) and the average cost per square metre was TL 244 (USD 7).

Here are the areas with the lowest average rents in Istanbul as of 1 October 2024: Esenyurt — TL 13,800 (USD 401), Arnavutköy — TL 15,400 (USD 447) and Sultangazi — TL 16,000 (USD 467). The most expensive neighbourhoods in this regard are Ataşehir — TL 28,400 (USD 825), Şişli — TL 28,600 (USD 831), Bakırköy —TL 30,100 (USD 875), Beyoğlu — TL 31,700 (USD 921), Kadıköy — TL 38,700 (USD 1,124), Beşiktaş — TL 39,900 (USD 1,159) and Sarıyer — TL 44,000 (USD 1,278). Moreover, in the current inflationary environment, the only condition for lowering rents will be the mass construction of development projects in Turkey, including social housing. However, the authorities and their chosen developers are not yet ‘keeping up’ with the demand, so we cannot expect a noticeable reduction in rental rates in the foreseeable future. However, experts predict a possible temporary reduction of up to 10% starting from November, depending on the location.

Property for sale

As far as sales are concerned, the great demand is traditionally for luxury housing and villas in Turkey’s premium locations, such as mansions on the banks of the Bosphorus. Buyers for these properties are found almost instantly and recently, such transactions have become more frequent.

For example, just this October, it was reported that the most expensive mansion on the seashore in Istanbul was up for sale. It’s situated in Bebek, in the Beşiktaş district, one of the most prestigious areas in the metropolis and is priced at TL 6 billion (USD 174.3 million).

For this price, you would receive a mansion with a total space of 3,000 square metres, 2,800 of which are residential. The house is situated on a plot of land of 4,500 square metres and includes 19 rooms.

Earlier, it was reported that the house of Sakip Sabancı, where one of the most popular Turkish TV series was filmed, is for sale. It has a total area of 1,985 square metres, with a price tag of TL 2 billion (USD 58.1 million).

It was also reported that Burhanettin Sezerar's mansion, which features 13 rooms, 2 living rooms and 7 bathrooms, has been sold. The announced price is TL 1.7 billion (USD 49.4 million).

The rapid closing of deals with elite properties is explained by the fact that Istanbul is where not just rich but super-rich people prefer to live. These individuals are willing to pay up to TL 2.5 million (USD 73,000) per month for ultra-luxury residences in premium locations. As per experts from the international property analytical company Knight Frank, such properties are mainly rented by Arab sheikhs, representatives of the Turkish elite and international billionaires, as they are not satisfied with ‘just hotels’, even presidential suites. A recent report prepared by Knight Frank revealed that the number of individuals living in Turkey with a fortune of over USD 30 million increased from 1,761 in 2022 to 1,932 in 2023. We are awaiting the results for 2024 for further comparison.

Well, small-sized (and inexpensive in terms of rent) class ‘economy’ flats in dormitory areas, close to public transport stops, hospitals and universities also remain in high demand. Although they are cheaper to rent, they are snapped up quickly due to the year-round demand for affordable housing in Istanbul, which is attracting newcomers such as contract workers, employees, students and newlyweds looking for their first ‘family nest’.

For investments, you can focus on the average price in the neighbourhood. Turk Estate's experienced consultants will assist you in finding the most suitable location, considering your investment goals.

Statistical data as of 20 October 2024, in dollars (source — Endeksa analytical portal):

• Average price per 1m² of housing in Istanbul — USD 1,217
• Minimum/maximum price — USD 606–USD 3,312
• Average area — 115 m² (total)
• Average price per unit — USD 139,993
• Average investment return period — 14 years

Average cost of property in different districts of the city: