Today, we will discuss the investment appeal of three provinces located near Istanbul. Furthermore, it is experiencing consistent growth, with lower prices and easier access to residence permits, as there are numerous immigrants in these areas.
Content:
- Canakkale
- Information regarding June 2024's conclusion
- Bursa
- Information regarding June 2024's conclusion
- Kocaeli
- Information regarding June 2024's conclusion
- Brief overview
Canakkale
The province stretches southwest of Istanbul essentially located on the other side of the Marmara Sea. The primary way to travel to Istanbul is by taking a ferry, but it is also possible to reach there by bus or airplane. The place boasts a remarkable expanse of shoreline along the sea. There has been a strong desire for land in this area in the recent period, and it comes as no surprise: the average profit for owners-investors from local plots has been 774.14% in the last 4 years. This is a kind of record. Residential real estate in Turkey is sought-after and of high quality in the area — large homes and detached houses, not small apartments for sale in Turkey. The reason for this region's popularity lies partly in its favourable climate, which is milder here than on the rest of the Aegean coast. The period for resorts and tourism in the area is from May to October leading to the growth of the market for summer homes, primarily purchased by affluent Turks. The presence of demand has led to an abundance of projects featuring villas in Çanakkale.
The main benefit of this region is the significantly lower prices compared to other well-known areas in Turkey (refer to the table provided). Bozcaada Island is an exception, as it stands out for its distinct position and features, with an average price of $4,110 per square metre. Ayvacık is notable as well, even though the cost of the square meter there is three times lower at $1,407, while another island, Gökçeada, is priced at $1,261. Prices in other parts of the province are less than $1,000 per square metre.
Summary conclusions:
- As of the end of June 2024, the prices of housing for sale in Çanakkale have increased by 44.33% over the past year.
- The average price per housing unit is $102,273.
- The average area of a residential property here is 110 m².
- The average payback period for investments in Çanakkale is short: it is only 14 years.
- The average price of 1 m² at the end of June 2024 was $930.
- The minimum/maximum cost of 1 m² is $590-$1,649.
- The cheapest areas to buy villas in Turkey costs are Bayramiç, Merkez, Gelibolu, Ezine, and Eceabat.
- Eceabat, Ezine, Yenice, Merkez and Biga pay off the fastest, respectively.
- Bozcaada, Ayvacık, Bayramiç, Çan and Lapseki pay off the longest (mainly due to the high cost of apartments in development projects in Turkey).
Information regarding June 2024's conclusion
| District | Average price per 1 m2 ($) | Average cost per unit of housing ($) | Average return on investment period (in years) | Refund for 1 year | Price growth for the year |
|---|---|---|---|---|---|
| Ayvacık | 1,440 | 185,710 | 26 | 3.89% | 32.49% |
| Bayramiç | 860 | 93,697 | 21 | 4.82% | 9.17% |
| Biga | 700 | 73,536 | 15 | 6.56% | 6.34% |
| Bozcaada | 4,207 | 530,024 | 46 | 2.19% | 22.42% |
| Çan | 669 | 73,581 | 19 | 5.32% | 0.69% |
| Merkez | 968 | 101,588 | 14 | 7.33% | -9.03% |
| Eceabat | 838 | 82,964 | - | - | -2.89% |
| Gelibolu | 775 | 90,681 | 15 | 6.70% | -1.71% |
| Gökçeada | 1,291 | 100,667 | 16 | 6.17% | 2.15% |
| Lapseki | 770 | 83,890 | 19 | 5.33% | -0.94% |
| Yenice | 685 | 87,018 | - | - | -1.93% |
It is recommended for those interested in buying property in Çanakkale to act quickly. The price per 1 m² was $1,035 in May 2023 dropping to $870 by August-September and then slowly increasing again. Moreover, its growth will persist.
Bursa
Bursa, which serves as the administrative centre of its namesake province, is among the biggest megacities in Turkey and boasts a large shopping district. So, commercial real estate is in high demand in this location, and land is extremely popular as well. Bursa is among the provinces where land prices are rising rapidly. Nilüfer is considered one of the most sought-after areas in the city for investments, with a constant influx of residential complexes featuring mixed-use spaces like offices and shops. Social housing is being constructed alongside huge residential complexes, including a brand-new project consisting of 2,500 apartments, which is deemed as the project of the century. Based on the facts mentioned above, it is possible to evaluate the outlook of Bursa and its significance for the country.
The province is located approximately 150 km distance from Istanbul leading many tourists to use the Istanbul International airport situated in the Asian side of the city — Sabiha Gökçen.
Short summaries:
- The average price per 1 m² is $710.
- The lowest/highest price per 1 m² is $433-$1,226.
- The average area of a housing unit in off-plan projects in Turkey is 134 m².
- The average price per housing unit is $93,141.
- The average payback period is 14 years.
- The average annual increase in the province (in price) is 36.53%.
- The most expensive districts are Yenişehir, Karacabey, Mustafakemalpaşa, Gemlik and İznik.
- The most budget–friendly areas are Gürsu, Mudanya, Nilüfer, Osmangazi and Kestel.
- The shortest payback period is in the districts of Karadağ, Keles, Mustafakemalpaşa, Orhangazi and Yenişehir.
- The longest investment return period is İznik, Orhaneli, Mudanya, Gemlik and İnegöl.
Information regarding June 2024's conclusion
| District | Average price per 1 m2 ($) | Average cost per unit of housing ($) | Average return on investment period (in years) | Refund for 1 year | Price growth for the year |
|---|---|---|---|---|---|
| Gemlik | 555 | 71,069 | 15 | 6.5% | -3.61% |
| İnegöl | 600 | 79,817 | 15 | 6.68% | -8.05% |
| İznik | 802 | 103,437 | 18 | 5.52% | -0.43% |
| Karacabey | 501 | 68,137 | - | - | 6.66% |
| Keles | 729 | - | - | - | -35.42% |
| Mudanya | 779 | 109,118 | 16 | 6.21% | -12.42% |
| Mustafakemalpaşa | 418 | 55,530 | - | - | 4.03% |
| Orhaneli | 526 | 52,623 | 17 | 5.76% | -28.42% |
| Orhangazi | 594 | 77,248 | 14 | 7.16% | 6.62% |
| Yenişehir | 601 | 82,290 | 14 | 7.03% | 5.11% |
| Nilüfer | 768 | 101,394 | 14 | 7.02%; | -15.64% |
| Osmangazi | 645 | 82,592 | 15 | 6.75% | -7.89% |
| Yıldırım | 611 | 73,376 | 15 | 6.89% | -2.67% |
| Gürsu | 645 | 68,655 | 15 | 6.53% | -10.40% |
| Kestel | 645 | 90,889 | 15 | 6.57% | -3.71% |
The trends over the last year mirrored those seen here in Çanakkale: prices rose to $822 per 1 m2 in May 2023, then dropped to $680 in July-August before slowly increasing again.
Kocaeli
This place is one of the most industrialized provinces of Turkey. Moreover, it is located near Istanbul as well.
Summary conclusions:
- The average price per 1 m2 is $755-$771.
- The lowest/highest cost of 1 m2 is $517-$1,308.
- The average area of one property is 130 m2.
- The average price per unit of housing is $100,287.
- The average payback period is 13 years.
- The average increase in price (for the province as a whole) for the year is 43.88%.
- The most expensive district is Kandyra: the average cost of 1 m2 is over $1,000, whereas it does not rise above $900 in other areas.
- The cheapest accommodation can be found in Dilovası, Kartepe, Gölcük, Karamürsel and Başışkel.
- The fastest return on investment is expected in the areas of Dilovas, Gölcük, İzmit, Kartepe and Kerfez.
- The longest period of return on investments is Kandyra, Gebze, Karamürsel, Başışkele and Darıca.
Information regarding June 2024's conclusion
| District | Average price per 1 m2 ($) | Average cost per unit of housing ($) | Average return on investment period (in years) | Refund for 1 year | Price growth for the year |
|---|---|---|---|---|---|
| Gebze | 767 | 92,031 | 15 | 6.51% | -3.77% |
| Gölcük | 632 | 82,431 | 13 | 7.49% | -6.75% |
| Kandyra | 1014 | 139,967 | 28 | 3.59% | 3.48% |
| Karamürsel | 761 | 95,875 | 15 | 6.85% | 0.67% |
| Kerfez | 661 | 85,940 | 14 | 7.17% | 0.12% |
| Derince | 621 | 80,770 | 14 | 7.31% | -5.15% |
| Başışkele | 785 | 117,028 | 15 | 6.77% | -10.48% |
| Çayırova | 722 | 85,902 | 14 | 7.25% | -6.25% |
| Darıca | 804 | 100,478 | 15 | 6.85% | -3.78% |
| Dilovası | 741 | 79,242 | - | - | -1.61% |
| İzmit | 723 | 86,795 | 13 | 7.49% | -6.96% |
| Kartepe | 717 | 96,762 | 13 | 7.64% | -11.32% |
Kocaeli has remained stable over the past year with prices dropping slightly from $835 to $709 per square metre since reaching its peak in May 2023. It is nearly back to where it was before.
Brief overview
All three aforementioned provinces have coastlines making them ideal for tourism, and they are also economically developed and attractive for investments. Additionally, each person has the chance to buy property in development projects in Turkey for under $1,000 per square metre, occasionally even cheaper. The payback period is extremely brief in each of the three provinces: 13-16 years. This fact adds to their appeal as potential housing investments.