1_480x320.jpg)
When choosing an apartment in Turkey, Russians often choose cheaper housing in popular resorts due to the sea, sun, fruit… All this is fine, "and in the winter, when we are in the Russian Federation, we will rent an apartment". This opinion is widespread.
However, it is in the resort regions that it is problematic to rent a house from autumn to spring. There are almost no tourists, just last year there were few of them because of the pandemic. The resorts live off the money during summer, so that neither students nor specialists working under contracts at industrial enterprises will rent housing.
In this sense, it is much more profitable to consider the option of buying a house in a large city. You can invest in it. And after a few years, returning a large amount of money, you will be able to buy an additional apartment on the beach. And for the first years, while residential real estate pays for itself, if you want to rent apartments or villas in different resorts, you can look at them and decide which one you like best.
Well, if you want to buy a property for income, TurkEstate recommends considering Istanbul.
Housing for rent is in demand all year round in one of the largest cities in the world. Prices are steadily increasing here. For example, the cost of renting housing in Istanbul increased by an average of 20% in 2020, while this figure was +13% in 2019.
We have recently talked about real estate prices in Istanbul, as well as about current rates. However, since then, there has been information about several infrastructure projects in the city and its regions that will cause price increases at least in the surrounding areas.
PROJECTS THAT CAUSED LAND AND HOUSING PRICES TO RISE
So the construction of two factories for the production of Chinese smartphones is actively underway. A Xiaomi factory will be built in Avcılar. The Chinese tech giant Oppo has already organized its production in Tuzla.
The demand for real estate is also growing steadily in the area of the New Istanbul Airport. Rental rates for housing will become more expensive in the area of the New Istanbul Airport, as well as on the way to it, where the metro will be located.
And perhaps the most important news of the last month is the decisions on the long-discussed construction of the Istanbul Canal, which will include the Strait of Istanbul with its navigation. It will connect the Black Sea and the Sea of Marmara. The Istanbul Canal is intended to be an alternative to the Strait of Istanbul and to reduce its overload, in particular, to reduce the number of oil tankers passing through the Bosphorus.
We have already mentioned that the land in the areas of the Istanbul Canal was sold from 80 to 700 liras per square meter in 2015 (depending on the exact location of the plot), then it was already 370-1900 liras in 2020.
The price for 1 sq. m near the future infrastructure project rose to 6000 Turkish liras at the end of 2020 depending on the plot size, location and construction rights.
In particular, a rapid increase in the cost of a square meter is predicted in the districts of Arnavutköy and Başakşehir. Moreover, the developers have already submitted carefully developed zoning plans to the authorities so that people can live here comfortably. All the necessary infrastructure is designed perfectly, etc.
According to market players, the very fact of the Istanbul Canal tender can instantly increase prices by 10-15% without mentioning its further growth.
1.jpg)
WHAT IS THE RESULT?
According to analysts, rental prices have increased by 100% in some areas of Istanbul over the past 12 months. It means that prices have doubled. This was partly due to the high selling price. Not everyone can (and not always want to) buy a residential property, especially if they are not sure that they will stay in Istanbul for the rest of their lives. Therefore, they prefer to rent comfortable apartments in a convenient area next to their studies or work, close to major convention centers, where exhibitions and events are held, etc.
The force majeure circumstances of the past year also affected the situation. There are lockdowns and movement restrictions with the need of taking care of our health and the safety of our loved ones. After all, Istanbul is a huge metropolis with more than 12 million inhabitants, which is now in the "red zone".
So the demand for detached houses with their own territory (a small garden), where you can feel comfortable, even spending months in solitude, has grown significantly. If the house is also not too far from the water/from the embankment, it is really wonderful. Experts at Hürriyet Emlak said: "Given the impact of the pandemic, we attribute rising rents to changing consumer habits. Until the pandemic slows down, we believe that prices will continue to rise not only in the business districts of Istanbul, but also in areas within located within walking distance of the beach or green spaces."
Such housing has already risen significantly in price and those who have bought real estate easily rent it out, which is becoming more expensive not by years as in previous periods, but by months, and sometimes even every week.
.jpg)
AREAS OF ISTANBUL WHERE RENTAL PRICES HAVE INCREASED THE MOST
The undisputed record holder is Bağcılar. It has +122% over the past year. According to Hürriyet Emlak, Resit Pasa, Emirgan, Kumkoy (Sarıyer), Hamidiye (Kayahan) and Harbiye (Şişli) are the following districts in the rating. They have risen in price by 100%.
Dikilitaş and Levazım districts (Beşiktaş), as well as Gumussuyu (Beyoğlu), have increased in price from 75 to 100%.
There is the rising rental cost from 50% and above in the districts of Teşvikiye and Esentepe (Şişli), Göktürk (Eyüp Sultan), Tomtom (Beyoğlu), Yeniköy (Sarıyer) and Yeşilköy (Bakırköy).
Due to the construction of the future metro line, rental rates in Bağcılar, Zeytinburnu, Şile, Esenyurt, Ataşehir, Sultanbeyli, Kadıköy, Çekmeköy and Beykoz have increased by more than 50%.
Local realtors report that the portfolio of available properties offered for rent is steadily decreasing, but the search for a suitable apartment or house is now delayed for up to two months. After all, all good and affordable options are sold out instantly.
By the way, we remind you that unlicensed realtors are prohibited from working in Turkey from April 1, 2021.
HOW MUCH IS A SQUARE METER AND THE WHOLE APARTMENT?
Nazim Erdogan, Deputy General Director for Marketing of one of the most popular information portals for rental and housing sales in Turkey Sahibinden.com, said that now a square meter costed an average of 23.1 Turkish lira (TL) per month in Istanbul. The increase was 40.1% in comparison to September 2017.
The General Director of Rota Emlak (which provides real estate services in the Avcılar and Beylikdüzü regions) said that rental prices had increased by more than 30% in these particular areas over the past year due to reducing construction rates and commissioning of new residential buildings. This situation was also affected by the processes of the so-called "urban transformation" designed to make life in Istanbul more convenient.
So the average price of renting an apartment for a year or even a little less increased from 2000 to 2700 TL per month in Avcılar (not counting aidat) and from 1700 to 2500 TL in Beylikdüzü.
Alper Perçin, marketing manager of Turyap, noted that due to the pandemic, a fairly sharp price growth for houses with gardens and balconies was first seen in June 2020. It was about 18% in Istanbul. Now, according to TurkEstate, the demand for such residential real estate and its prices continue to grow. Moreover, 5-year-old houses are more popular. The rising rental cost is lower in buildings constructed 20 years ago and earlier. It is about +10%. And the demand for such housing is much less.
So when choosing a property to buy in Istanbul for future rental, we recommend you to
- pay attention to the infrastructure projects nearby. Because of this, the property can become more expensive both when renting and when selling;
- make sure that there is a cozy and spacious adjacent territory in a house;
- choose houses built relatively recently, if possible. They are more in line with modern requirements, built with advanced technologies, as well as more earthquake-resistant;
- make sure that you have DASK insurance and / or have to get it (and possibly to get private earthquake insurance, in addition to the mandatory one because Istanbul is one of the most earthquake-prone areas in Turkey);
You can read the TurkEstate review of why you should not be afraid to buy a house in Turkey, even in seismically active locations.
- buy housing only from licensed realtors.