Istanbul, a city straddling two continents, remains an enticing hub for those seeking vibrant cultural experiences and diverse lifestyles. The city's property rental market is taking center stage. With its rich history, scenic views, and economic dynamism, it's no surprise that Istanbul continues to attract residents and investors from all around the world. In this article, we explore the trends and prices of apartment rentals in Istanbul.
Istanbul is a sprawling metropolis with a variety of neighborhoods, each offering a unique blend of modernity and tradition. Prices for apartment rentals vary significantly depending on the neighborhood, amenities, and proximity to key locations.
• Bosphorus View: Neighborhoods like Beşiktaş and Ortaköy, offering stunning Bosphorus views, command premium rental prices. Expect to pay more for luxury apartments with these captivating vistas.
• Historical Charm: The historic districts of Sultanahmet and Fatih feature apartments that exude Ottoman-era charm. Rentals in these areas are sought after by those wanting to immerse themselves in Istanbul's rich history.
• Business Hub: Levent and Maslak, Istanbul's financial districts, remain attractive to professionals. The convenience of work-play balance drives demand and consequently, rental prices.
Factors Impacting Prices:
Several factors influence apartment rental prices in Istanbul:
• Location: Proximity to commercial centers, public transportation, and cultural attractions significantly affects prices.
• Property Type: Apartment size, number of bedrooms, and amenities like swimming pools or gyms play a crucial role in determining rental costs.
• Market Trends: Fluctuations in the real estate market, supply and demand, and economic conditions impact rental prices.
Apartments rental prices in Istanbul:
Rental prices in Istanbul vary significantly by neighborhood, making it challenging to provide specific figures. Instead, we'll focus on minimum rental rates for different housing options in the city of Istanbul in Complexes only and these prices are for a year contract with no furniture.
1+0 Studio : Starts from 250$ Monthly
1+1 : Starts from 320$ Monthly
2+1 : Starts from 430$ Monthly
3+1 : Starts from 570$ Monthly
4+1 : Starts from 720$ Monthly
Istanbul, with its unique blend of East and West, continues to be a magnet for people seeking the perfect blend of modernity and tradition. Generally, the city's apartment rental market offers a range of options to cater to diverse needs and budgets. Whether you're in search of a luxurious Bosphorus-view apartment, a cozy historical abode, or a practical mid-range rental, Istanbul has something for everyone. Keep an eye on market trends, and with careful consideration, you can find the ideal apartment that suits your lifestyle and budget in this fascinating city.
As the year unfolds, Istanbul's property rental market remains dynamic and ever-evolving, promising a multitude of opportunities for both renters and investors.
A remarkable rise in real estate prices in Turkey during the past months is due to the increase in demand in many Turkish states, especially Istanbul, in return for a decrease in supply, amid expectations of a further rise in 2022.
The demand for real estate purchases in areas close to services and major infrastructure projects has increased, as a result of the high growth rate of the Turkish economy, in addition to the many advantages that foreign investors obtain when owning real estate in Turkey.
In this article from Taksim Real Estate, we explain the reasons for the recent rise in house prices in Turkey, and the extent of its impact on real estate sales in the country, so read on.
Reasons for increasing real estate prices in Turkey
As we mentioned earlier, the increase in the price of real estate in Turkey is due to the increased demand by Turks and foreigners alike, and if we talk about the reasons for the increase in foreign investors, especially Arabs, to buy a property in Turkey, the most prominent of them are the following:
• The facilities provided by the Turkish government to investors, including the real estate appraisal document, and the abolition of the reciprocity law.
• Discounts and tax exemptions when buying a property in Turkey.
• Major infrastructure projects, such as the Istanbul Canal Project and Istanbul's Third Airport.
• The social and political stability in the Republic of Turkey.
• The possibility of a foreigner obtaining real estate residency or Turkish citizenship when buying a property there.
Real estate sales in Turkey in light of rising prices
House prices in Turkey increased during the third quarter of previous year 2021 by 37%, compared to the same period of 2020, and the highest rise were Aydin, Mugla, and Balıkesir, respectively.
During this period, about 396,328 homes were sold in the Turkish states, with home sales increasing in 2021, by 26% compared to the same period last year, according to the latest report of the endeksa platform.
Real estate sales to foreigners also increased by 43% compared to the same period in 2020, where 16,991 housing units were sold to foreigners, with home sales to foreigners achieving 60%, an increase of 43% compared to the same period of the previous year.
Will real estate prices rise in Turkey in 2022?
Local real estate market experts expect a further rise in the price of real estate in Turkey during the current year 2022, as a result of the increased demand for purchase, in addition to the high exchange rate of the US dollar against the Turkish lira.
With this rise, Turkey remains the ideal destination for foreigners wishing to invest in real estate; this is because the prices of housing units are very low compared to other Arab and European countries.
This was a quick presentation of real estate prices in Turkey, and the reasons for its prosperity, with a presentation of the real estate market experts' view of prices in the future.
If you want to know more about the price of real estate in one of the Turkish states; do not hesitate to contact us at Taksim Real Estate Consultancy, and our legal team will be happy to provide adequate answers to your inquiries... Contact now!
or you can check the following link with our full listing of properties for sale in Turkey
There are many types of residence in Turkey according to the reason for its issuance; Whether for tourism, investment, work, study, or for humanitarian reasons, under which the government gives the foreigner permission to stay in the country legally.
What are the types of residence permits in Turkey? How long is it? In addition, what are the conditions for extracting it? This is what we will discuss in some detail in this article from Taksim Real Estate Consulting...
1- Short Term Residence Permit
A short-term residence is granted to a foreigner who has entered the Turkish territory legally, and its duration is from one year to a maximum of 5 years, according to the type of residence.
Who can get short-term residence in Turkey ?
• Whoever resides in the country for tourism purposes, or has commercial relations, and wants to stay in the country for more than 3 months, known as the tourist residence in Turkey.
• Real estate owners, provided that the property is used for housing, it is known as a real estate residence in Turkey and is not given to family members unless they have a share in the property.
• The foreign employee of one of the companies operating under the umbrella of the Republic of Turkey, known as the work residence in Turkey.
• A foreigner who has invested in the Turkish market at the value set by the Council of Ministers, his wife, and children, and for 5 years, is known as the investor's residence in Turkey.
• Foreigners who come to Turkey to do scientific research, or to take a Turkish language course.
• Patients who come to Turkey for treatment, and their companions.
Conditions for obtaining a work permit in Turkey
• The employee must be registered with the Social Insurance Institution SGK.
• The employee obtained a tourist residence in advance.
• The company's cadre should include 5 Turkish employees for each foreign employee.
2- Family Residence Permit in Turkey
Under the father or mother obtaining a residence permit in Turkey, All family members under the age of 18 obtain a family residence permit for a maximum period of 3 years, for the same period of residence as the grantor.
Who gets family residency in Turkey?
• Husband/wife of a Turkish citizen.
• Whoever was born with Turkish citizenship and then lost it as a result of leaving Turkey.
• The family of a foreign employee with a residence permit in Turkey.
• The resident is under exceptional protection, for not fulfilling the conditions of asylum, but his return to his country poses a danger to his life.
3- Student residence in Turkey
It is a one-year residency granted to students studying in Turkish educational institutions, and it is renewed according to the number of years of study. If the period specified for the study of the foreign student is less than a year, the period of residence cannot exceed the period of education.
To whom student residence is granted in Turkey?
• Foreign students who are studying for a bachelor's, master's, and doctoral degree, in a Turkish university.
• Students who receive their primary and secondary education in a Turkish school, and who do not have family residency.
• Under this residence permit, the student's family, such as the wife and children, obtains the family residence.
4- Permanent residence in Turkey
It is a long-term residence without borders, obtained by a foreigner who has resided in Turkey for 8 years without interruption, according to the conditions set by the Turkish Ministry of Interior.
Conditions for a foreigner to obtain permanent residence in Turkey
• To be a resident of the Republic of Turkey for 8 consecutive years.
• He has not received social assistance in the last 3 years.
• To have a regular income sufficient to support him/her.
• He has valid health insurance.
• Not a threat to Turkey's public security.
5- Humanitarian Residence Permit
This type of residence is issued for humanitarian motives, to foreigners whose conditions of return to their countries pose a threat to their lives, and the duration of the residence is determined by the Turkish Ministry of the Interior in coordination with the General Directorate of Migration Management, according to each case.
6- Residence Permit for Human Trafficking Victims
This residency is issued for expatriates who have been victims of human trafficking, for 30 days, and is renewed for a maximum of 6 months each time, if the renewal periods do not exceed 3 years.
This was a quick overview of the types of residence in Turkey, the duration of each of them, and the conditions for obtaining them.
If you would like to know more about the types of residence permits in Turkey; Do not hesitate to contact us at Taksim Real Estate Consulting, and our legal team will be happy to provide adequate answers to your inquiries .. Contact us now!
Istanbul and other Turkish cities have become a dream for many, not only because it is a country that embraces wonderful nature and ancient historical monuments that immortalize a unique religious cultural heritage, but also because of the many advantages that make living and owning in Turkey a winning bet by all standards.
Therefore, in this article we have tried to shed light on the advantages of living and owning real estate in Turkey, while clarifying how to own real estate online while you are outside Turkey, so continue reading.
Turkey is a European country with a mixture of eastern and western traditions. It is located on the continents of Asia and Europe. Living under it has a special charm, as it is the destination for tourists in all parts of the earth.
It is the paradise of the earth, which attracts a wide range of foreigners to reside and own, especially businesspersons looking to benefit from the growing Turkish economy, in addition to the high quality of life, in terms of health services, education, safety, with a low cost of living.
Therefore, you find that it embraces a large number of Arab expatriates, who adapt quickly to Turkish customs and traditions, break the language barrier in daily dealings at the very least, and may help them to mingle with the Turkish people, who are known for their friendliness and hospitality.
Advantages of living and owning in Turkey
There are many advantages of living and owning real estate in Turkey, which make Turkish cities and states an ideal destination for foreign investors.. Among the most prominent of them are:
♦ Strong transportationnetwork
The multiplicity of transportation networks throughout the Republic of Turkey facilitates the movement between one state and another, as well as the speed of movement between the two parts of Istanbul, the Asian and the European...
There are subway stations, Metrobus lines, trams, dolmush (shared taxis), public buses, in addition to marine transportation, and many airports, perhaps the most important of which is Istanbul's new airport, one of the major vital projects in the country.
♦Diversity of investment opportunities
You have many investment options in Turkey, including industrial, commercial, and agricultural investment, in addition to real estate investment by buying an apartment in a Turkish city with a guarantee of leasing and resale, with a profitable profit margin.
♦ Obtaining Turkish citizenship
Buying a property in Turkey worth 250 thousand US dollars gives you the ability to obtain Turkish citizenship, and then a Turkish passport, for you and your family members.
♦ Tourist attractions and archaeological museums
Turkey is full of tourist attractions and archaeological museums that reflect the history and heritage of this country, such as Belarus Bey Palace, Turkish Art Museum, Sultan Ahmed Mosque...
If you are a fan of that atmosphere that smells of history, you can buy an apartment in Turkey within one of the country's historical regions, and more.
♦ Charming nature
Turkey is distinguished by its charming nature. Most of Istanbul's apartments - for example - have breathtaking views of the Marmara Sea and the Bosphorus, not to mention the charm of the view of the green plains, and the lush gardens of Istanbul such as Yildiz Park, Emirgan Park, Machka Park.
The climate in Turkey is diverse; the coastal areas in Istanbul have a warm climate in summer and cool humid in winter, and the south and centre of the capital, Ankara, have a continental climate; hot, dry summers, and snowy winters. As for the north of Ankara, it has a mild climate. As you see, you will have many options.
♦ Food Tourism
Food lovers are attracted by the delicious Turkish cuisine, and they are attracted by the diversity of dishes, so many travel lovers for food tourism, which has spread widely in recent years, prefer real estate investment in Turkey.
♦ Low cost of living
Living in Turkey is quite low in cost, compared to European countries, and some Middle Eastern countries, with the best health, education, and entertainment services.
♦ Safe Residential Complexes
You may have heard before, about cases of theft in some areas of Istanbul that have not yet entered the scope of urban planning, and although it is a phenomenon that already exists, but it is an individual cases.
On the other hand, all residential complexes in Turkey, without exception, give their residents a high level of security and safety, through guard crews, and advanced monitoring devices inside and outside the complex.
How to own property in Turkey online?
If you are outside Turkish territory, and you want to buy a property in Istanbul or another Turkish city, you can contact us at Taksim company, to be your real estate broker, under a legal agency that you extract from the Turkish consulate in your country, and then send it to us by mail, so that we will take care of all the procedures on your behalf the purchase.
Where we offer you a selection of Istanbul real estate projects signed by the largest construction companies in Turkey so that you can choose the right property for your living requirements after we show you the exact details of more than one property through online field tours as if you were on the ground.
After completing the purchase procedures, we take care of all the procedures for Turkish citizenship, extract your Turkish passport free from Taksim Real Estate Consulting, and then send it to where you live in your country.
If you want to know more information about the advantages of living and owning in Turkey, before buying your dream apartment; Do not hesitate to contact us at Taksim Real Estate Consultancy, and our real estate team will be happy to provide adequate answers to your inquiries.. Contact now!
We talked in our previous article, about the types of real estate investment in general, and the forms of real estate investment in Turkey in particular, and we mentioned that real estate investment has different patterns depending on the period within which the investment return is expected, and we also mentioned that the investment aspects vary based on the form of this return, either by resale or rent of the property.
However, in the previous article, we did not mention the value of the investment return and the amount of expected profits that the investor will earn, so in this article we will clarify the average investment return for each type of investment that we explained previously.
Before going into details, it is necessary to refer to several important points that we considered during our research and the results that we have reached:
♦ For the figures in this article, we relied on several official and unofficial sources concerned with the Turkish real estate market and monitoring the rates of increase in prices according to the difference in supply and demand, and the difference in the annual inflation rate.
♦ We used the Turkish lira to calculate the return on investment on an annual basis.
♦ We chose Istanbul as it is the most popular city for investors, and therefore the percentages mentioned in this article may not apply to the investment returns of real estate outside Istanbul.
♦ We will mention the average rate of return on investment, which certainly may vary from one region to another.
♦ In addition to the above, we relied on our experience in the real estate field and our daily monitoring of the movement of the real estate market in Turkey and the change in real estate prices and rents.
1 - Return on investment by leasing the property:
Real estate rental is one of the most common forms of investment in Turkey, and it is very popular among Turkish citizens themselves, as we find that many Turkish citizens prefer buying and renting a property over any other type of investment, due to the high demand for rental throughout the year.
Depending on the details we mentioned in our previous article, the annual rental returns for real estate in Turkey are as follows:
♦ Residential apartments: annual rental return of 4% as a minimum of the property value.
♦ Furnished apartments: annual rental return of 6% as a minimum of the property value.
♦ Commercial shops: The annual rental return is 5% as a minimum of the property value.
♦ Hotel apartments: annual rental return of 8% as a minimum of the property value.
Note: Regarding hotel apartments and furnished apartments, it is worth noting that they may be vacant during certain periods of the year, but they are rented on a daily or weekly basis in good prices during the tourist seasons, and we have taken this into account in the mentioned percentage.
2 - Return on investment through resale:
Real estate prices in Turkey are having a steady annual increase. According to the Turkish Statistical Institute, the average increase in housing prices during the past year was 30%. This was certainly not a natural increase, as it was accompanied by the global spread of the Corona epidemic, which prompted a large percentage of the population to turn to fixed assets, in addition to the difference in the price of the Turkish lira, as is known.
However, in general, real estate prices in Istanbul have an annual increase that varies according to the type of property and its region, and accordingly we can determine the return on investment for resale as follows:
♦ Ready real estate (residential and commercial apartments): 10% annual increase in the value of the property as a minimum.
♦ Real estate under construction: 25-30% increase upon delivery of the value of the price paid in instalments.
♦ Lands prepared for construction: The construction project is a high-return investment, as the land, after construction is finished, will be divided into residential apartments and shops, the value of the investment return may double several times by the end of the project. However, several things must be considered, namely that this type of project needs to obtain many licenses, in addition to the significant increase in the prices of building materials, as the increase during the first eight months of this year reached 45%, according to the Turkish Statistical Institute.
♦ Purchase of agricultural land and resale when it enters the regulatory area: It is not possible to determine a fixed percentage of the expected return on investment for such a project, due to the different regions and their proximity or distance from government projects and public utilities such as airports, industrial cities, and tourist areas. But we mention as an example of this type of investment the lands located on both sides of the Istanbul Canal project, where a decade ago these lands were almost empty lands and sold at cheap prices, while at the present time, after the announcement of the canal project, it has become one of the most expensive areas. It made the owners many times the purchase price.
In conclusion, we would like to note that the percentages mentioned in this article are correct until the date of its publication, and they may change according to the movement of supply and demand. For any additional information on the return on investment in real estate in Turkey, you are welcome to contact us to take the advice from real estate experts.
Housing sales to foreigners in turkey increased by 30.5 percent in June, Where the number of apartments sold to foreigners during the last month 2,689 homes. The number is the highest in half a year in the history of home sales to foreigners in Turkey.
Istanbul was ranked first among the Turkish states, the number of apartments sold to foreigners during the first half of the current year: 8,903 housing units.
According to the nationality of the buyers, the highest number of houses sold to Iraqi citizens, where the number of housing sold to Iraqi citizens during the month of June last 429 apartments, respectively Iranians with 415 unit, and in third place Russian citizens with 190 apartments. followed by German, British and Kuwaiti nationalities, respectively.
The number of homes sold to foreigners in all Turkish states during the first six months of this year was 19,952 units, i.e. an increase of 68.8% over the same period last year.
Effect of the Turkish citizenship Law:
The Turkish citizenship law and its subsequent amendments had the greatest effect on the increase in sales to foreigners. This law grants every foreigner who buys a property worth $ 250,000 or more the right to apply for Turkish citizenship. which reflected positively on the Turkish real estate sector, Only Istanbul achieved an increase of 22.6% during the first half of 2019 compared to the same period of 2018.
Mortgage sales drop:
The high interest rate of mortgages has led to a significant drop in mortgage sales, where the number of housing mortgages in June 2019 decreased by 84.6% compared to the same month last year.
In addition to the high interest rate, the citizenship law was instrumental in reducing the demand for mortgages, because the law requires payment of the full price of the property when applying for citizenship. In addition to the discounts provided by construction companies to investors who want to buy in cash.
Particularly, large-scale branded housing projects direct foreign sales by seeking high added value and prestige, the new regulations that facilitate the investment in turkey is not only effect the real estate sector, But it gains the Turkish economy as a whole.
Foreigners who invest in real estate sector spend a certain period of the year in turkey, that creates new business fields in turkey.
The upward trend of foreign investment is expected to continue in the coming months.
Inflation rates have been announced by the Turkey Statistical Institute. Thus, the rent increase rates for July 2019 were announced. Here are the rent growth rates in July 2019 ..
Tenants who wish to renew the annual lease will have to pay an increase in rents. This increase is calculated under the law of obligations. Under this law, the rate of increase of rents on tenants can not exceed the producer price index rates.
In 2018, due to the negative effects of the rise in inflation rates on rents, the rent increase calculation method was changed.
The Medium Term Economy Program (2019-2021) prepared by the Ministry of Treasury and Finance and the Strategy Budget Department was announced last September. According to the New Economy Package, rent increase can no longer be calculated according to producer price index rates, the upper limit of the rent increase rate will be calculated according to consumer price index rates.
According to these changes, the provisions of the Turkish law of Obligations will be applied on the basis of the average annual rate of change of the consumer price index on new leases and on those that will be renewed.
Inflation rates are reported monthly by the Turkish Statistical Institute.
Rates of increase of rent for real estate for July 2019:
As of today, it has become clear how much increase will be applied on the tenants whose housing or business lease agreement is renewed this month.Consumer price index up 0.03 percent on this month and Domestic producer price index increased by 0.09 percent.
for Consumer price index (Tüketici fiyat endeksi "TÜFE"): (2003=100) In June 2019, there has been an increase of 0.03 percent compared to the previous month, 5.01 percent compared to December of the previous year, 15.72% compared to the same month of the previous year and 19.88 percent on the averages of twelve months basis.
for Domestic producer price index (Yurt içi üretici fiyat endeksi "Yİ-ÜFE"): In June 2019, it has increased by 0,09 percent compared to the previous month, 8,09 percent compared to December of the previous year, 25,04 percent compared to the same month of the previous year and 32,81 percent compared to the averages of twelve months.
Accordingly, the properties owners will be allowed to raise the Rental allowance by 19.88 percent.
Current rental: 1000 TL
Rate of rise: 19.88 %
Rise value: 198 TL
Rent after rise: 1198 TL.
"We have created resources to finance our projects during the current year worth 16 billion Turkish liras, of which 5 billion were paid during the first five months of the year"
This statement was made by Mr. Ömer Bulut, head of Public Housing Development Administration at the Ministry of Environment and Urban Development of Turkey (TOKI) in an interview with the Anatolia Agency yesterday.
Mr. Bulut added that, through non-profit collective housing projects, we have been able to enable low-income families to own a home.
Commenting on the effective contribution of TOKI to the economy and job creation, Mr. Bulut said: "We have been able to provide resources to finance our projects worth 16 billion Turkish liras this year 2019, of which 5 billion have already been paid during the first five months of the year."
"Constructions is still underway within the scope of the "50 Thousand Social Housing Project", which we are seeking to achieve with the support of our ministry, We will add 140 new construction sites to our existing 287 construction sites, which will save about 120,000 new jobs" said TOKI President.
3.5 million citizens will become homeowners:
Mr. Bulut explained how TOKI was able, within 16 years, by reaching 843,546 new homes and by Providing the possibility of installment for 15-20 years to make 3.5 million citizens as homeowners. He added that the volume of TOKI investments during the last 16 years amounted to 160 billion Turkish lira, and that it will direct its efforts during the coming period to build Public housing.
With regard to the project (the 50 thousand social housing) Bulut explained that the project was put to the public subscription on 5 March last and closed the reception of applications on 19 April, Applicants will be selected by lot, where the draw will continue until the next 21 August.
As of today, we have completed drawing lots of 15 thousand 125 houses in 34 projects. The tender for 10 thousand 271 houses was completed in 18 projects and their construction is about to begin. In 8 projects, 1686 houses entered the tender process.
250 thousand housing units until 2023:
Stating that TOKİ will produce houses in horizontal architectural style in all of its projects as in recent years and that the neighborhood culture will be kept in the forefront, Mr.Bulut stated that "As TOKİ, in residential areas and general city plans, in line with the urbanism criteria of our President, we will produce houses with a horizontal architectural approach that will keep the neighborhood culture alive, bring our citizens together with nature, and keep the family and neighborhood relations alive."
As part of the objectives of the Ministry of administration by 2023 will implement 250 thousand social housing, Mr. bulut said.