The real estate market is one of the most ruling economies in the country. Besides being supported by the government, it is also one of the most sought after investment elements for local people who see the market as an easy profit to earn. Many people can invest in their all savings for a property to accommodate or rent so that they earn an amount of minimum wage in Turkey which is 2,320 TRY. For earning this amount, an apartment from a simple building which is quite close to the transportation links – especially metro – and the proximity to the center because most people generally prefer to stay not so far away from the center even if their businesses are found in a distant place from the center. Because of that paradox, the places that are known as both business and entertainment towns such as Besiktas (Europe), Sisli (Europe), Sariyer (Europe), Fatih (Europe), Beyoglu (Europe) and Kadikoy (Asia), Uskudar (Asia) are highly important not only for local people but also foreign people who want to invest in Istanbul Real Estate Market.
The reason why the market is highly popular for foreigners because Turkish people want to live these places but it is hard to buy a property for a person who even earns better than the standard. That’s why these towns create a great opportunity for a high rental income due to being easier to get a real estate for foreign people. The exchange makes purchasing property easy. For instance, the price of the house is 500.000 Turkish Lira, a person earns 15.000 TRY – which is really a good salary – per month. So, the person should work nearly 33 months without wasting even a lira to get the property. On the other hand, when we think that a European who earns 7.000 Euro – which is approximately 50.000 TRY is as equal as our example and get the same property only 10 months later. According to the location, amenities inside and outside, the proximity to the transportation links, which floor the apartment is and the square meter of the apartments, an investor from Europe can rent the apartment at least 3000 TRY so that our sample can stay at this apartment by renting. We can say that both people who are seen as the same class create a great rental market at the towns that are written above.
On the other hand, within the amenities that residences include such as indoor swimming pool, sauna, spa, security, fitness and more, luxury projects are featured as living places including all posh amenities in one despite high maintenance fee because doing these activities separately outside is more expensive than the inside of the project as well so that numerous people prefer to live that kind of buildings. Additionally, Hundreds of thousands of foreign people buy a property to apply to get Turkish citizenship. According to law, you should purchase properties with a total value of 250.000 $ to apply for getting Turkish citizenship. That is another reason for turning residences into great investments because you can rent them from high prices and also saving them to stay at your retirement or the possibility to permanently live here by making your business in Turkey. 250.000$ for only a property, you can buy from one of the best places in the city. You can also get the whole money back in one payment in the selling process because people who want to get Turkish citizenship have to buy real estate with cash money so it will be the most profitable investment to invest in a residence for both rental and reselling incomes. Let’s see the official statistics to consolidate our theory.
The consumers who purchase from residences mostly prefer to use advance payment among the options of bank credit, bill and advance payment in the 4th quarter of 2019. %6.5 of people are foreigners. In the last quarter of the year, the market of real estate increases with the growth %14,7 that is the same month from the previous year so that 45.483 apartments from residences were sold out. When we analyze the number of the city to city, Istanbul was the first city with a %46 rate while Antalya took second place.
On the other hand, in the nationality analysis, Irak is the first country to see the market attracts the most, second place is for Iran and Russia took the 3rd place on the real estate market in Turkey.