Istanbul is the largest metropolis and the leader in property sales, not just for residential property in Turkey. It’s also the capital of tenants. The bulk of the country’s tenants are, including students, business travellers, project workers and civil servants. Not to mention tourists: passenger traffic through Istanbul's air hubs is approaching 1 hundred million. And in 2023 alone, rental rates in the metropolis increased by an average of 65%. Additionally, Istanbul is one of the most expensive cities in Europe for renting property, demonstrating its attractiveness as an investment opportunity in rental housing.
Content:
- Housing
- Detailed data are presented in the table, based on May statistics
- Commercial property
- Land plots
Housing
In recent months, secondary housing in Turkey has been in much higher demand than new buildings. Istanbul is not an exception; in fact, the metropolis is the undisputed leader in the sale of secondary residential property in Turkey. However, new buildings here are also in high demand, particularly in the elite residential complexes in sought-after locations.
Regardless of whether it’s primary or secondary:
- As of the end of May 2024, residential property sale prices in Istanbul have increased by 48.24% over the last 12 months;
- The average price per square metre across the province, not just in the metropolis, is USD 1,234;
- The average price per square metre in the city is USD 1,241;
- The minimum/maximum price per square metre is USD 600–USD 3,222;
- The average price for a typical housing unit of approximately 115 square metres is USD 142,721;
- The average payback period for residential property in the metropolis is 16 years;
- The most expensive districts are Beşiktaş, Sarıyer, Kadıköy and Beykoz;
- The most affordable districts are Esenyurt, Güngören, Sultanbeyli, Avcılar and Arnavutköy;
- It takes an average of 70–90 days to find a buyer for a property put up for sale. Finding new property owners in the Princes' Islands takes the longest, average of 117 days.
Detailed data are presented in the table, based on May statistics
| District | 1 m2 cost, USD | Average cost per housing unit | ROI in housing, yr. | ROI p. a., % |
|---|---|---|---|---|
| Adalar (Princes' Islands) | 2,087 | 260,840 | - | - |
| Bakırköy | 2,376 | 323,183 | 25 | 4,04% |
| Beşiktaş | 3,422 | 455,071 | 25 | 3,93% |
| Beykoz | 2,822 | 536,165 | 34 | 2,94% |
| Beyoğlu | 1,866 | 173,571 | 17 | 5,81% |
| Çatalca | 1,001 | 127,073 | 17 | 5,8% |
| Eyüpsultan | 1,416 | 145,849 | 16 | 6,4% |
| Fatih | 960 | 86,380 | 15 | 6,74% |
| Gaziosmanpasha | 1,003 | 104,272 | 14 | 7,01% |
| Kadıköy | 2,727 | 338,116 | 23 | 4,37% |
| Kartal | 1,298 | 142,814 | 17 | 5,85% |
| Saryer | 3,511 | 526,720 | 22 | 4,46% |
| Shile | 1,875 | 331,934 | 22 | 4,51% |
| Şişli | 1,658 | 180,769 | 17 | 5,76% |
| Üsküdar | 1,832 | 219,889 | 22 | 4,46% |
| Zeytinburnu | 1,373 | 145,583 | 21 | 4,76% |
| Büyükçekmece | 1,069 | 155,044 | 20 | 5,09% |
| Kyaitkhane | 1,241 | 111,672 | 14 | 6,98% |
| Küçükçekmece | 1,047 | 108,904 | 17 | 6,01% |
| Pendik | 1,036 | 113,971 | 16 | 6,17% |
| Umraniye | 1,247 | 125,906 | 17 | 6,0% |
| Bayrampaşa | 1,080 | 106,965 | 17 | 6,0% |
| Avcılar | 936 | 113,233 | 19 | 5,37% |
| Bagjılar | 1,013 | 111,439 | 18 | 5,58% |
| Bahçelievler | 934 | 93,445 | 17 | 5,93% |
| Güngören | 814 | 83,829 | 15 | 6,78% |
| Maltepe | 1,439 | 143,853 | 18 | 5,68% |
| Sultanbeyli | 874 | 96,128 | 17 | 5,87% |
| Tuzla | 1,109 | 119,719 | 16 | 6,4% |
| Esenler | 985 | 97,563 | 19 | 5,21% |
| Arnavutköy | 837 | 92,033 | 17 | 5,75% |
| Ataşehir | 1,490 | 163,907 | 17 | 5,86% |
| Başakşehir | 1,287 | 162,167 | 19 | 6,35% |
| Beylikdüzü | 868 | 123,266 | 16 | 6,33% |
| Çekmeköy | 1,117 | 122,907 | 16 | 6,17% |
| Esenyurt | 569 | 62,583 | 13 | 7,94% |
| Sancaktepe | 902 | 101,890 | 16 | 6,3% |
| Sultangazi | 790 | 80,620 | 16 | 6,33 |
If the budget is limited, the most affordable properties can be found in the following districts: Esenyurt (up to USD 70,000); Sultangazi, Güngören, Fatih (USD 80,000–USD 90,000); Arnavutköy, Esenler, Sultanbeyli (up to USD 100,000); Sanjaktepe, Gaziosmanpasha (about USD 100,000 on average).
And don’t forget, there are currently good discounts on secondary properties.
Well, where should you choose a property in the metropolis not for investment but for life? Discover more in our article European and Asian parts of Istanbul: where is better to live?
Commercial property
There are several options here. First of all, you can invest in commercial property used as residential spaces, such as rooms or apartments in Turkey's hotel complexes, especially since you don’t need to worry about finding a tenant, ensuring timely payments or maintaining property safety as the management company, namely the hotel operator, handles all of this. The main difference from traditional housing is that ownership does not grant you a residence permit. Additionally, these properties are usually more expensive than flats of a similar size. However, the rental income is stable and significantly higher than that from long-term rentals, as the properties are rented out on a short-term basis.
Other options include offices and warehouses. Another profitable investment option is shopping centres, especially in the largest megacities. Based on spring data, the turnover index (or efficiency index) for shopping centres in April 2024 increased by 75.7% in nominal terms compared to the same period last year and by 9.7% compared to the previous month. The turnover per rented square metre of space was TL 13,477 (USD 410 in Istanbul. The average for Turkey is TL 11,640 (USD 354).
The Association of Shopping Centres and Investors (AYD) monitors the performance of commercial real estate (RC) and publishes monthly reports. Based on the latest statistics, the most profitable rent sector is shops operating in the food and beverages category, with a growth of 81.2% over 12 months. This is followed by clothing stores (80.8%), shoe stores(68.6%) and appliance stores (54.9%). Hypermarkets come next.
Shoppers are visiting shopping centres 10.1% more frequently than in the month preceding the recent report. Not surprisingly, new shopping centres are emerging regularly in various cities, with one after another being built in Istanbul.
Land plots
While flat prices in Istanbul can occasionally decrease by a few per cent due to external economic factors, land prices are steadily rising. Foreigners can purchase land in Turkey, although there are some restrictions. In the province of Istanbul, both the metropolis and its surroundings, land is a gold mine in terms of investment attractiveness. This is particularly true for plots designated for residential and commercial development, such as warehouses, offices, etc. In this context, the land near the Istanbul Canal, currently under construction, is appreciating rapidly, as predicted and these areas did not attract much attention in the past.
In June 2024, analysts presented a list of promising land investment locations that could see significant price increases within a year. Here are the territories on the list:
Arnavutkoy district
- Baklaly
- Boyalyk
- Yassioren
- Nakkash
- Yesilbayir
Catalca district
- Kabakcha
- Injegiz
- Akalan
- Orjunlu
- Izzettin
- Kestanelik
- Yazlyk
- Orendzhik
- Jelepköy
Silivri district
- Akyoren
- Bekirli
- Deirmenköy
- Beygiler
- Çayırdere
Eyupsultan district
- Akpınar
- Ishiklar
- Odayeri
- Agaçli
- Pirinchi
Saryer district
- Kısırkaya
- Gümüşdere
- Pendik district
- Kurtdoğmuş
- Ballyja
Schiele neighbourhood
- Gökçe
- Shuayyipli
- Kabakoz
- Akcakese
- Kadıköy
- Geredeli
- Isakköy
- Yazımanayır
Beykoz district
- Riva
- Chayagzy
- Iskhakly
- Kılıçlı
- Gölü
Cekmekoy district
- Syrapınar
- Kocullu
For advice on which option to choose for investment, which property will be more profitable in a particular city/area or guidance on your expected investment amount, please get in touch with Turk.Estate.