Investment Property in Istanbul

Investment Real Estate in Istanbul

Investment Property in Istanbul
Investment Property in Istanbul

Istanbul property investment can be a worthwhile venture if you are selective with the areas you choose to invest in. If not, you could find that your investment suffers due to low rental yields, dwindling demand, and slow property price growth in many parts of Istanbul .

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Search Map of Istanbul Investment Real Estate

Istanbul ( IST-an-BUUL, IST-an-buul; Turkish: İstanbul [isˈtanbuÉ«] (About this soundlisten)), historically known as Byzantium and Constantinople, is the largest city in Turkey and the country’s economic, cultural and historic center. The city straddles the Bosphorus strait, and lies in both Europe and Asia, with a population of over 15 million residents, comprising 19% of the population of Turkey. Istanbul is the most populous city in Europe, and the world’s fifteenth-largest city.

Founded as Byzantion by Megarian colonists in 660 BCE, and renamed as Constantinople in 330 CE, the city grew in size and influence, becoming a beacon of the Silk Road and one of the most important cities in history. It served as an imperial capital for almost sixteen centuries, during the Roman/Byzantine (330–1204), Latin (1204–1261), Byzantine (1261–1453), and Ottoman (1453–1922) empires. It was instrumental in the advancement of Christianity during Roman and Byzantine times, before its transformation to an Islamic stronghold following the Fall of Constantinople in 1453 CE. In 1923, after the Turkish War of Independence, Ankara replaced the city as the capital of the newly formed Republic of Turkey. In 1930 the city’s name was officially changed to Istanbul, an appellation Greek speakers used since the eleventh century to colloquially refer to the city.

Over 13.4 million foreign visitors came to Istanbul in 2018, eight years after it was named a European Capital of Culture, making the city the world’s fifth-most popular tourist destination. Istanbul is home to several UNESCO World Heritage Sites, and hosts the headquarters of numerous Turkish companies, accounting for more than thirty percent of the country’s economy.

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The financial stability of Istanbul has translated into a real estate market that rewards forward planning and a willingness to look beyond areas of traditional affluence.

Buy to Rent in Istanbul

Renting out your Istanbul buy-to-rent investment property can grow wealth and income.

Whatever your goals with investment property in Istanbul are – preparation is key.

  • Set goals based on how much rental yield will be required and the local rental yield rates in Istanbul and be prepared to change your initial outlook.
  • Thoroughly research the Istanbul location with a special emphasis on fringe areas outside the main Istanbul metropolis that may be valued lower than their better-known neighbors. Rental yields of around 5% are still attainable in certain areas of Istanbul.
  • Ensure that your target investment property in Istanbul appeals to professionals. This is a demographic that ensures maximum income and low voids.
  • Finding and vetting suitable tenants is a job ideally left to the professionals. Working with an established letting agent such as Physis Realty with local knowledge and experience of property legislation will give you the best chance of success.
  • You may think that managing your Istanbul properties yourself is an easy option, but are these savings justifiable when you run into Istanbul red tape? Physis Realty Istanbul office in downtown provides you with peace-of-mind and leaves you time to plan your next move in the growing Istanbul buy-to-rent sector.

With our expert guidance, investing in Istanbul provides the secure knowledge that your money is working harder than it would in a local Istanbul bank and that future generations of your family will be left with substantial capital growth assets.

We are always happy to advise on buying investment property in Istanbul, where we have been established for over 35+ years. Physis Realty has been a firm fixture in the Istanbul property market through good times and bad. Our experts have seen it all and our portfolios continue to outperform.

Flipping Investment Property in Istanbul

Flipping property in Istanbul

Flipping property is when we advise clients to buy a Istanbul property below market value, renovate it and then make a profit by selling it at a higher price, all within a few months, and often before the Istanbul market has a time to react to the renovation.

The Flipping Strategy in Istanbul

Investment property flipping in Istanbul is a simple strategy. You find a property that is in need of renovation from our list and purchase it for a low price. These type of Istanbul real estate investments are sometimes referred to by professionals as ‘distressed’ Istanbul real estate.

What is distressed Istanbul property:

  • Istanbul property in need of renovation
  • Istanbul real estate with a change of purpose and use
  • Oversold Istanbul property
  • Bank repossessions in Istanbul

Put simply, long term investors in Istanbul purchase the property, renovate it and make it a lot more attractive to potential buyers.

Calculate profit that you make from Istanbul investment property flipping:

Final Selling Price less Cost of Purchase less Costs = Profit

Here is an example:

Istanbul property purchase price: $220,000

Renovation costs: $20,000

Other costs: $25,000

Property sale price: $400,000

Profit: $135,000

Experienced property developers in Istanbul use a minimum profit value of 22% when looking at potential Istanbul projects. The reason for this is because there are lots that can go wrong in Istanbul property flipping and working on a potential margin of 22% should still leave a good margin of error.

Luxury Property in Istanbul

For luxury property investors hoping to add a superb property in Istanbul to their luxury real estate investment portfolio, Physis Realty is a trusted partner.

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A world leader in luxury real estate with a portfolio comprising some of the most sought-after real estate in Istanbul, Physis Realty caters particularly to high net-worth individuals and families. A luxury real estate investment in Istanbul should be entrusted to only the highest-quality agency.

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