By Justin Mays:
Buyers from various countries travel to Turkey to invest in real estate, relocate, or purchase a year-round vacation house. Istanbul is the city where foreigners are most likely to purchase a house. There has been a considerable surge in international interest in Turkish real estate over the past two years, including softening house prices (caused by the lira's decline against the United States dollar) and a lower cost for the Turkish Citizenship Program compared to citizenship programs of other countries.
How Have House Prices Changed Recently in Istanbul?
According to a study done in October 2021 by the Center for Economic and Social Studies at Bahçeşehir University in collaboration with one of the well-known Turkish real estate sales sites, the following Istanbul neighborhoods had a surge in the prices of their real estate:
-On Istanbul's Asian side is Kadikoy.
- Asian Istanbul's suburbs, including Silla.
- Sariyer on the European side of Istanbul.
From Edirne to Talca, which is on the outskirts of European Istanbul.
There are other areas where prices have increased noticeably. We note that some parts of Istanbul's house prices rose dramatically in 2020, beginning with June, following the end of the initial closure brought on by the coronavirus outbreak.
Istanbul's Typical House Prices in 2022
With an average house price of 765 USD per square meter, Istanbul has Turkey's most expensive housing. Below are typical house prices.
Istanbul Apartment Prices in 2022
The Turkish Statistics Authority reported that 1,491,856 flats were sold in Turkey in 2021, with Istanbul leading all Turkish states selling 276,223 apartments. For flats in Istanbul, the average price per square meter has risen to 10,900 TL.
Istanbul Villa Prices in 2022
The average price of a villa in Istanbul for 2022 varies depending on the type of villa, size, location, quality of the cladding, finishes, view, city center, and distance from it. Prices start at 400,000 USD and can go up to 2 million for a large, luxurious villa. Generally, prices of villas in Turkey can be described as low compared to those in Europe.
Istanbul's Shop Prices in 2022
Due to the uniqueness and vibrancy of each region, its proximity to major areas, the varying sizes of the shops, their location, and views, Istanbul's shop prices vary just like the prices of Istanbul apartments. We can discover stores starting at 80,000 USD in Laxeira Square as an illustration of Istanbul store prices.
Since becoming a popular tourist destination, Istanbul has drawn a lot of investments and business ventures from both the east and west, making it a popular destination for those seeking a top location for conducting business and investing, as well as for those looking for the best offices for sale in Istanbul.
Are Istanbul's House Prices Fair?
It is stated that Istanbul's house prices compete with Europe's, particularly in the western part. Real estate in Turkey is differentiated by the same level of services and infrastructural durability as European real estate.
The Muslim and Arab expatriates in Europe find Turkey a haven; given the political and economic unrest that their home countries experience, we can say that house prices in Istanbul are logical to some extent.
Turkey's warmly hospitable culture and civilized environment for investors make it a desirable location for vacations or to enjoy a lovely and pleasant retirement. This was also seen in a rise in Turkish house demand, which contributed to the country's sustained profitability as real estate investments due to rising house values.
What are the Causes Behind Istanbul's High House Prices?
In terms of the causes of the increase in house prices in Istanbul, several issues can be discussed, in addition to the rising foreign demand for real estate purchases in Turkey generally and Istanbul specifically.
When it comes to a crucial location like Istanbul, which connects the continents of Asia and Europe, it is not a surprise that prices are constantly rising. This results in a wealth of excellent and prestigious investment prospects in Turkey's real estate.
The domestic Turkish market is youthful, and the proportion of young people is high among Turkish citizens. As a result, Turkey's unprecedented increase in the proportion of young people necessitates increasing the demand for ownership and rental housing.
In addition to the high costs of building supplies, such as cement, iron, and finishing materials, among others, on a global scale increased construction expenses in dollars, which in turn caused a rise in pricing.
Concisely, elevated demand and, in other words, rising expenses and growing demand caused house prices to rise in Istanbul, Turkey.
Conclusion
Compared to other nations like Spain or Portugal, house prices in Turkey are still very affordable. However, as demand for Istanbul real estate increases internationally, you may encounter unexpectedly high prices because there will always be locals looking to take advantage of "know nothing" foreigners. Therefore, you require assistance from someone who can advise you on market characteristics and strategies for negotiating the price and the terms. Anyone who plans to purchase a house in Istanbul, Turkey, must have someone who speaks Turkish.
Always evaluate the costs, terms, and conditions of the various agencies' property offerings to make the best decision. It is one of the few areas with significant potential right now that is not affected by the stagnation and crisis in the real estate sector.
