The Rising Price Trend Continues:
The most prominent trend in Istanbul's real estate market in recent years has been the continuous rise in prices of residential and commercial properties. The price increases, which started especially from 2020 and peaked in 2022, were realized under the influence of many factors such as the increased demand after the pandemic, the rise in construction costs, exchange rate fluctuations, and inflationary pressures. The Central Bank of the Republic of Turkey's (CBRT) interest rate policies and the increase in housing loan interest rates continue to affect prices upward.
While housing prices in Istanbul vary according to regions and housing types, they have increased significantly on average on an annual basis. Prices have risen even further in central locations, close to transportation axes, and in modern and luxurious housing projects. High inflation and uncertainty in exchange rates directed investors to real estate, which is seen as a safe haven, contributing to the rise in prices.
Changes in Consumer Preferences:
In addition to the increase in prices, significant changes are also taking place in consumer preferences. Especially in the post-pandemic period, there is a tendency towards larger living spaces, houses with gardens or balconies, living in harmony with nature, and moving away from the city center. This situation has led to an increase in demand for villa-type housing projects, especially in the periphery regions of Istanbul (for example, Arnavutköy, Çatalca, Silivri, Beykoz).
In addition, with the widespread adoption of the work-from-home model, the demand for houses with a study room or office space has also increased. While consumers attach more importance to comfortable and functional living spaces, they also pay attention to features such as smart home systems, energy efficiency, and sustainability. Young people, in particular, are interested in small square meter apartments or studio-type houses in central locations, close to transportation facilities, and with easy access to social activities.
Investment Areas and Potential Regions:
There are different options and potential regions for those who want to invest in Istanbul's real estate market. Residential and commercial properties located in central locations (for example, Beşiktaş, Nişantaşı, Kadıköy) continue to see high demand, while prices are generally at higher levels. However, these regions may still be attractive for those considering long-term investment.
The periphery regions of Istanbul, on the other hand, offer more affordable housing projects, large living spaces, and the opportunity to live in harmony with nature. With the development of transportation infrastructure, access to these regions is facilitated, while investment potential also increases. Regions such as Arnavutköy, Başakşehir, Beylikdüzü, Sancaktepe, and Pendik stand out in terms of housing projects, while industrial zones and logistics centers also offer potential for commercial real estate investments.
The Canal Istanbul project may increase real estate prices and investment potential in the regions on the route of the project. However, the environmental impacts and legal processes of the project should also be taken into account. In addition, urban transformation projects in regions with earthquake risk increase the demand for new and safe housing, while also offering investment opportunities.
Economic Uncertainties and Risks:
Istanbul's real estate market is also affected by economic uncertainties and risks. Inflationary pressures, exchange rate fluctuations, increases in interest rates, and political developments can negatively affect the real estate market. In addition, an increase in housing supply and a decrease in demand can also affect prices downward.
High housing prices and credit interest rates make it difficult to own a home, while increasing the demand for rental housing, especially for young people. The price increases experienced in the rental housing market cause problems for both homeowners and tenants.
Conclusion:
Istanbul's real estate market has a dynamic and constantly changing structure. While the rising price trend continues, changes in consumer preferences and new investment areas are also emerging. Before investing, it is necessary to consider market conditions, economic risks, regional potentials, and personal preferences. Seeking expert opinion and conducting detailed research can help make the right decisions.
How Istanbul's real estate market will perform in the coming period will depend on many factors such as economic developments, political stability, demographic changes, and global events. However, Istanbul's attractiveness and potential seem to keep the real estate sector alive.
Recommendations:
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Conduct Market Research: Research regional price differences, supply-demand balance, and future development potential.
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Seek Expert Opinion: Get support from real estate consultants, appraisers, and lawyers.
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Assess the Risks: Consider economic uncertainties, earthquake risk, zoning plans, and legal regulations.
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Determine Your Budget: Determine your budget correctly, taking into account credit interest rates, tax liabilities, and other expenses.
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Think Long Term: Real estate investment is usually a long-term investment. Evaluate the long-term potential without being affected by short-term fluctuations.
Istanbul's real estate market offers both opportunities and risks. By acting with the right strategy and information, you can make a successful investment.
