Istanbul remains the most sought-after city in Turkey in terms of real estate purchasing and one of the most expensive locations in terms of rent. New records are consecutively set in this area. So, in the approx. central Istanbul districts, there are no apartments cheaper than 6,000 Turkish liras (TL) for rent.
When the previous report in April ( from the most popular rental and home sales website sahibinden.com) was published, the average apartment rental rate in the largest urban area was 17,381 TL. As of September, this figure reached 21,394 TL.
Also, attention was drawn in the published report to the complete absence of adverts for apartment rentals costing less than 6000 TL. According to Sözcü, another significant notion in the published September report was that the number of available lots, with a rental rate of less than 8,000 TL, has continued to rapidly decline: from the previous count of 135 units to just 24.
Over the past year, as Turk Estate has already described, rental prices in Istanbul have increased, According to updated data received from the Turkish portal of Endeksa, which analyzes real estate prices, the average sale price of one square meter of real estate in the largest Turkish metropolis was 20,208 Turkish lira (TL), and the average price per housing unit was 2,424,960 TL. At present, housing in Istanbul is paid off in 19 years, but there is reason to believe that this period might be reduced.
The increase in housing prices in Istanbul is due to the volatility of supply in the residential real estate market over the past 3-4 years, the increase in construction costs, fluctuations in the exchange rate, and the pandemic. These are four keys, but not the only factors. In general, against the backdrop of general uncertainty, Istanbul remains an "island of stability." And month after month, its share in total home sales is about one-sixth (ranging from 15 to 17.9%). For example, in August, 18,485 residential lots were purchased in the metropolis with a 15% share in total sales, and already in September, 19,089 lots or 16.8%.
Rising prices for both sale and rent are provoked by the same key processes that increase the number of purchase/rent transactions, etc. in a circle. Migration between cities is on the rise. People move in search of either cheaper housing options, or vice versa, better ones - when buyers/tenants finally get good employment and look for closer / better housing for themselves and their families. The same reasons cause the notorious "intra-urban mobility". This is especially noticeable due to the rapid rent growth in the central areas of Istanbul, such as Besiktas, Kadikoy, and Sisli. Intra-urban migration is now especially characteristic of young professionals, students, and office employees.
The trend to “move from the city to the outskirts” is also very strong, either to pay less or to find something more spacious and comfortable for the same amount.
For example, the districts of Küçükçekmece, Avcılar, Bahçelievler, Basaksehir, and Umraniye have become new “centres of attraction” (and “key habitats”) for young highly qualified expats “escaping” from the centre as part of a new internal migration wave. Over the past year, house prices have risen by 283% in Umraniye, 237% in Avcilar, 224% in Küçükçmece, 223% in Bahçelievler, and by 205% in Basaksehir.
Public investments, especially in the development of transport networks, also significantly affect the “change of priorities”. Intensive construction of new metro lines (the "branch" to the airport on the Asian side - Sabiha Gokcen - is open; in the next month it will be possible to get by metro to the New Airport on the European side of Istanbul, which replaced Ataturk Airport) has led to an increase in property values along these and other lines, and to the expansion of the areas of movement of people within the city. Young professionals who previously had to live in more central areas to not be late for work and business meetings due to the eternal “traffic jams” (the talk of the town in Istanbul), can now move to bedroom districts and neighbourhoods with more affordable rental rates.
The future Canal Istanbul also "raised in price" both the land and the complexes under construction in the areas closest to its route.
Let’s not forget about the “digital nomads”, because a lot of foreigners moved to Istanbul with the onset of the pandemic and the active spread of remote work. Many have remained; and since March 2022, those specialists from the Russian Federation who have the opportunity to work remotely, have also swarmed into the metropolis. Many of them are paid in hard currency (dollars/euros), so are good, stable tenants.
Many of those who came for a month or two, due to circumstances. appreciated all the delights of life in Istanbul and decided to gain a foothold. This is not surprising as the metropolis took 1st place in the recent Forbes ranking of "The most convenient cities to live in Turkey."
Moreover, in this case ( this article), we include all “remote workers” engaged in intellectual work and working in the “computer plus wi-fi” format to the group of “digital nomads. Unlike other countries where the “digital nomad” format is defined by clear rules and requires a special visa (confirmation of income and providing several documents), there are no such requirements in Turkey. Citizens of several countries, including the Russian Federation, can stay here visa-free for months, and with a generally “unlimited” residence permit.
Returning to the Istanbul locations, the areas with the highest annual increase in the value of housing for sale at the end of September 2022 were Sisli, Beyoglu, and Ataşehir.
- Housing prices in Şişli have risen by 347% over the past year; the average cost per square meter "grew" to 35,865 TL, and the average price of a residential real estate unit to 4,052,745 TL.
- Beyoğlu has risen in price by 333% over the past year: the average price per square meter has reached TL 31,441, and the average price per housing unit is TL 3,164,100.
- Housing prices in Atasehir have risen by 300%: the average selling price per square meter of housing is now 26,955 TL, and one lot is 3,099,825 TL (almost the same as in Beyoglu).
As Endeksa clarifies, it is precisely in terms of the rise in the price of “square” housing that the leaders are:
- Sarıyer - the average cost of 1 square meter of housing for sale has risen to 65,593 TL;
- Besiktas - up to 63 246 TL;
- Kadikoy - up to 46,775 TL;
- Bakirkoy - up to 46 070 TL.
These locations are highly valued due to the well-developed infrastructure plus the general well-groomed and beautiful nature of the area.
Görkem Ogüt, the founder and CEO of Endeksa, traditionally commented on the latest statistics: “The fact that Istanbul is at the peak both in terms of residential real estate sales in the domestic market and in terms of transactions with foreigners, allows it to influence the formation of the housing market not only within its borders but throughout the country. Due to rising prices in Istanbul and the chaotic structure of the city, provinces such as Tekirdag, Yalova, Sakarya, Kocaeli, Sapanca, Kartepe, Charkoy, and Chinarcik have also recently begun to attract increased interest.
Besides, migration from the city centre to coastal areas has long begun: a trend that took shape during the pandemic and is still not abating. In short, Istanbul is the most important city in the real estate market in Turkey and any “inner currents” of the market in this metropolis directly affect the state of the housing and construction market throughout the country.”
So, it makes sense for potentially interested parties who are looking at the opportunity to invest in Turkish real estate, but at the same time without the “sight” to live there themselves, to apply for a residence permit, etc. It also makes sense to look firstly at Istanbul, not limited to the Antalya region. A stable flow of tenants, rapidly growing rental rates, year-round demand, two international airports in the city, and excellent quality projects from well-known developers (often houses with heating, not always provided “by default” in Turkey) make real estate in the largest Turkish metropolis a win-win investment option.
Finally, we present the latest figures on the increase in prices for rental and sale of real estate in the city as a whole and in individual areas over the past year.
Areas | Sale prices in September 2022 (TL/m²) | Sale price changes during the last year (%) | Rent prices in September 2022 (TL/m²) | Rent price changes during the last year (%) |
---|---|---|---|---|
Istanbul (average figure for the city) | 20 208 | 241 | 91 | 145 |
the Prince's Islands | 35 709 | 166 | – | – |
Arnavutköy | 12 904 | 228 | 50 | 168 |
Ataşehir | 26 955 | 300 | 105 | 155 |
Avcılar | 17 510 | 237 | 68 | 130 |
Bağcılar | 17 486 | 253 | 79 | 159 |
Bahçelievler | 16 090 | 223 | 71 | 157 |
Bakırköy | 46 070 | 205 | 132 | 168 |
Başakşehir | 25 310 | 205 | 89 | 154 |
Bayrampaşa | 18 098 | 214 | 71 | 183 |
Beşiktaş | 63 246 | 211 | 176 | 146 |
Beykoz | 41 247 | 196 | 89 | 178 |
Beylikdüzü | 15 992 | 223 | 70 | 136 |
Beyoğlu | 31 641 | 333 | 177 | 194 |
Büyükçekmece | 19 104 | 220 | 62 | 126 |
Çatalca | 15 635 | 233 | 55 | 195 |
Çekmeköy | 17 834 | 261 | 71 | 186 |
Esenler | 16 265 | 257 | 73 | 234 |
Esenyurt | 11 278 | 214 | 62 | 129 |
Eyüp | 21 278 | 247 | 108 | 134 |
Fatih | 18 150 | 243 | 92 | 189 |
Gaziosmanpaşa | 15 817 | 247 | 80 | 156 |
Güngören | 14 933 | 237 | 67 | 164 |
Kadıköy | 46 775 | 183 | 134 | 162 |
Kyaithane | 22 471 | 282 | 110 | 224 |
Kartal | 21 801 | 276 | 79 | 166 |
Küçükçekmece | 18 117 | 224 | 86 | 160 |
Maltepe | 25 675 | 280 | 88 | 153 |
Pendik | 17 118 | 275 | 66 | 174 |
Sancaktepe | 14 429 | 263 | 60 | 149 |
Sarıyer | 65 593 | 212 | 216 | 181 |
Silivri | 13 593 | 219 | 40 | 97 |
Sultanbeyli | 14 042 | 245 | 53 | 154 |
Sultangazi | 12 539 | 210 | 56 | 184 |
Şile | 25 492 | 218 | 71 | 105 |
Şişli | 35 865 | 347 | 142 | 175 |
Tuzla | 19 245 | 275 | 70 | 155 |
Ümraniye | 21 856 | 283 | 77 | 171 |
Üsküdar | 28 307 | 297 | 94 | 173 |
Zeytinburnu | 22 994 | 265 | 111 | 131 |