Istanbul remains at the forefront

By the end of spring and especially in the summer of this year, there was a gradual rise in transactions to buy the best real estate in Turkey, with Istanbul, the country’s biggest city attracting more attention from investors.

Content:

• Sales volume and prices
• Rental prices
• Forecast of the dynamics of the Istanbul real estate market

Sales volume and prices

Let's have a closer look at the latest statistics.

So, 18,814 housing units were sold in Istanbul in May 2024, 13,025 — in June, and 19,047 — in July.

Below is detailed information about the number of sales by city districts:

Unfortunately, detailed statistics for July have not yet been available to the public.

Let's talk about the situation in the city’s real estate market.

• Housing prices in Istanbul have increased by 36.62% over the past 12 months. The average cost of typical apartments in Turkey (114 m²) is $139,921.
• The average payback period for real estate investments in the largest Turkish city is 14 years.
• As of the end of July 2024, the average price per square metre of residential real estate for sale in Istanbul is $1,227.
• If we consider the average values, the most expensive areas are Sarıyer ($3,408 per 1 square metre), Beşiktaş ($3,320), Kadıköy ($2,807) and Beykoz ($2,743).
• As of the end of July 2024, the districts with the fastest payback are Adalar, Esenyurt, Kağıthane, Eyüpsultan and Fatih.
• Housing will take the most time to pay off in the districts of Beykoz, Beşiktaş, Bakırköy, Kadıköy and Sarıyer (because of high prices).

How can you get your money back as soon as possible without reselling your home and resorting to the difference between off-plan and ready-to-move-in houses in Turkey? The best way is renting it out. We will not limit ourselves to short-term tourist rentals — it brings more income, but it can be troublesome and requires additional paperwork to rent apartments in development projects in Turkey legally. The owner or the company representing their clients’ interests must have a license. Even though something may be hard, it does not mean it can't be done. However, let's talk about a simpler option — a long-term lease.

Rental prices

Considering the removal of the 25% cap on rental rate increases that was in place until July 1, 2024, the rental industry in Turkey has become highly appealing. Following the repeal of this regulation, rental rates in the entire country increased by 30-60%, with some of the most desirable locations such as Istanbul experiencing spikes of up to 65%.

Analysts presented data that had been adjusted for inflation. We are publishing new average rental rates by district, while clarifying that they can be much higher in prestigious villas in Turkey with good infrastructure.

The areas with the highest rents in Istanbul have been revealed. Sarıyer ranks first followed by Beşiktaş, Bakırköy, Kadıköy and Beyoğlu. The areas of Eyüp, Fatih, and Üsküdar are also among those listed with the highest rental prices for housing.

However, Sancaktepe, Silivri, Sultanbeyli, Arnavutköy, Kurtköy and Çatalca can offer you some of the lowest rental prices.

So, what do we have after the increase:

• Beşiktaş: prices have risen from TL 48,000 ($1,414) to TL 79,000 ($2,328) since July 1;
• Başakşehir: from TL 35,000 ($1,031) to TL 57,000 ($1,680);
• Beylikdüzü: from TL 25,000 ($737) to TL 41,000 ($1,208);
• Fatih: from TL 25,000 ($737) to TL 41,000 ($1,208);
• Eyüp: from TL 30,000 ($884) to TL 49,000 ($1,444);
• Esenyurt: from TL 28,000 ($825) to TL 46,000 ($1,356);
• Üsküdar: from TL 40,000 ($1,178) to TL 66,000 ($1,945);
• Kadıköy: from TL 35,000 ($1,031) to TL 57,000 ($1,680);
• Sarıyer: from TL 55,000 ($1,621) to TL 90,000 ($2,652);
• Bakırköy: from TL 48,000 ($1,414) to TL 79,000 ($2,328);
• Beyoğlu: from TL 50,000 ($1,473) to TL 82,000 ($2,416);
• Arnavutköy: from TL 26,000 ($766) to TL 42,000 ($1,238);
• Çatalca: from TL 25,000 ($737) to TL 41,000 ($1,208);
• Sancaktepe: from TL 10,000 ($295) to TL 16,000 ($471);
• Silivri: from TL 18,000 ($530) to TL 29,000 ($855);
• Sultanbeyli: from TL 15,000 ($442) to TL 24,000 ($707).

As for the highest rents in Istanbul, Sarıyer ranks first followed by Beşiktaş, Bakırköy, Kadıköy and Beyoğlu. Eyüp, Fatih and Üsküdar are also included in the list of the most expensive rental housing.

However, Sancaktepe, Silivri, Sultanbeyli, Arnavutköy, Kurtköy and Çatalca have inexpensive apartments for sale in Turkey.

Housing shortages have become the biggest problem in Turkey's megacities, and there are few vacant apartments in Istanbul as well. Although the average rental price in the city is TL 20,000, or $589 (based on the exchange rate at the time of writing this article).

So, here is the entire range of housing, including houses for sale in Turkey (at the end of July 2024):

• Çatalca — 71 properties;
• Sultanbeyli — 296;
• Sultangazi — 321;
• Bayrampaşa — 340;
• Şile — 345;
• Güngören — 376;
• Esenler — 389;
• Zeytinburnu — 512;
• Arnavutköy — 514;
• Silivri — 530;
• Gaziosmanpaşa — 607;
• Tuzla — 761;
• Çekmeköy — 806;
• Sancaktepe — 806;
• Bağcılar — 941;
• Beyoğlu — 956;
• Büyükçekmece — 1,010;
• Fatih — 1,035;
• Beykoz — 1,075;
• Bakırköy — 1,095;
• Ataşehir — 1,194;
• Kartal — 1,197;
• Avcılar — 1,223;
• Ümraniye — 1,291;
• Maltepe — 1,388;
• Eyüpsultan — 1,461;
• Beylikdüzü — 1,556;
• Sarkık — 1,570;
• Üsküdar — 1,600;
• Küçükçekmece — 1,698;
• Başakşehir — 1,672;
• Bahçelievler — 1,257;
• Kadıköy — 1,770;
• Beşiktaş — 2,082;
• Kayalıkhane — 2,086;
• Şişli — 2,620;
• Sarıyer — 2,886;
• Esenyurt — 3,591.

What is with the dynamics? If the number of residential units for sale in Istanbul was 149,474 five years ago, in 2019, it is 129,081 units in 2024. As for the lease figures, the number of lots amounted to 44,627 in 2019,  while it is 37,717 lots in 2024 (at the time of calculations).

Forecast of the dynamics of the Istanbul real estate market

Macroeconomic factors, such as inflation, interest rates and exchange rates, have a direct impact on real estate prices and purchasing power. Certainly, the housing prices in the biggest city in Turkey are expected to increase further, although maybe not at the same rapid pace as previously.

The supply (range of affordable housing) in Istanbul is growing with numerous new development projects in Turkey. Nevertheless, the demand continues to be strong as a result of steady population increase and movement, both international and domestic, within Turkish regions.

High-quality renovated properties in areas close to the city centre and new projects in developing (including residential) parts of the metropolis are extremely popular. Flats in Turkey near the new tram and metro stations are in the highest demand.

Eco-friendly buildings attracts investors. Smart home technologies, energy efficiency and other principles of sustainable development, which are among the investment trends of the future, play an important role here as well.

As for foreign buyers, they have always had a significant impact on the real estate market of the largest Turkish metropolis. This trend will continue in 2024. Investors from the Middle East and Europe are interested in buying housing in Istanbul. This also determines both the dynamics of sales and pricing policy, because foreign buyers provide an influx of "strong" currency.

As for locations, the difference in prices between the city’s central districts and its outskirts is an important criterion for choosing real estate. There is a significant increase in housing prices in 2024 in central areas, such as Beşiktaş, Şişli and Bakırköy, on the European side of Istanbul. Kadıköy, Üsküdar and Ataşehir stand out on the Anatolian side not only for their good location, but also for their high quality of life. Ataşehir, with its new financial centre, is especially noticeable.

However, you can find high-quality and more affordable housing options in communities located outside the centre. Such areas such Esenyurt, Beylikdüzü and Sancaktepe attract attention with their low prices, large territories and comfortable residential complexes equipped with the latest technology.

However, you can find other detailed information about these areas in the previous Turk Estate article on this topic — "Istanbul’s most sought–after districts for rent".