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learn about 20 factors affect real estate prices in istanbul

learn about 20 factors affect real estate prices in istanbul

 

Real estate prices in Istanbul in particular, among the Turkish cities, are constantly increasing. The chart below shows that real estate prices in Istanbul have increased by 44.5% in the last five years only.

 

But of course, this is a general indicator that includes Istanbul as a whole city, but what about each of its areas? What about the modern projects compared to the old ones? What are the expectations for future prices?

We will answer the previous questions by determining the factors that affect the price of the property, whether it goes up or down.

The price of the property in Istanbul depends on fixed and variable factors. We will talk about each of these factors.

 

Fixed factors affecting real estate prices in Istanbul:

1.      The location of the property in any area of Istanbul, specifically in any neighbourhood of this area, because real estate prices may double in the same area compared to two neighboring neighbourhoods that are only separated by a 10-minute walk, the location is not limited to the names of the neighbourhoods and their importance, but also the price is affected by the property's proximity to transportation, education centres, services, etc.

2.      New real estate with a higher rental income than old real estate in the same neighbourhood and with better investment value, so their prices are higher, especially real estate under construction in strategic neighbourhoods, which constitute the best investment opportunities in the real estate market at all.

3.      The level of finishing the property and the quality of the materials used in construction significantly affect the prices and also, therefore, it leads to a high rental return in the real estate with luxurious finishing, sometimes customers are deceived with cheap and real prices for a property, but with a very low level of finishing, the voices of the neighbours can be clearly heard. What causes great inconvenience when there are evening celebrations or morning noise, especially when there are patients or children in the house, and therefore this type of real estate has low prices and this is true, but it has a low rental return and when reselling, it is difficult to reach a person who wants to obtain such a property.

4.      The level of services and facilities in general the costs of the monthly services for residential complexes do not differ materially from each other, while the services and the quality of the recreational facilities vary greatly. For example, it is possible for a residential complex that includes cleaning and security services 24/7 and a car garage that its monthly service costs are equivalent to $ 50, while another residential complex with integrated services such as children's playgrounds, clubs, summer and winter swimming pools, open and closed parking, and a large number of restaurants and shops, its monthly service costs can be about $ 60-70, and this in itself affects the price of the property, as residential complexes with integrated services have a higher price and a higher rental return and are more desirable when reselling in the future.

5.      The view is an influencing factor in real estate prices and the importance of this factor increases whenever the main feature of the property is the view, for example in projects with a sea view in Istanbul, the difference between an apartment with a full sea view and an apartment with a back view may reach 40% of the price for the same area and planning.

6.      The number of apartment rooms is a factor known to everyone, but the types of apartments with the same number of rooms can be very unfamiliar, as a two-bedroom apartment and a hall can have 10 different styles in the same project, and even in terms of converging spaces, the difference may be in the fact that the kitchen is a closed or open, large or small balcony, having a laundry room or not, these differences, in addition to the differences in spaces, secondarily affect the pricing of real estate.

7.      Apartment height and floor numbers are an influencing factor in real estate prices, as apartments with higher floors are more expensive than apartments with lower floors for several reasons, including better views, low noise, and better home ventilation.

8.      The number of total apartments in a single building and the number of buildings in the project itself mainly affect the pricing of real estate, as residential complexes with few floors are a symbol of privacy and sometimes luxury, and large complexes with a large number of buildings that each contain a huge number of housing units can be considered as a factor that negatively affects the prices of these buildings' real estate, sometimes a large number of floors is a positive feature in raising the price of the property, as in high-rise towers with a stunning view of the Bosphorus, representing a place of residence or a very elegant and luxurious work office.

9.      Shops within the residential complex, and sometimes we can find a complete shopping center within this residential complex, without a doubt, affecting real estate prices positively and also securing a high rental return.

10.  The angle of inclination of buildings in the residential complex has a secondary effect on real estate pricing, as homes with a view on the south side are the best because they have the largest share of the warm winter sun and the least share of the harsh summer sun. If the house has more than one side at the same time, this gives it an additional advantage compared to similar homes in terms of space, but with only one side.

 

And now we will talk about the variable factors that affect real estate prices in Istanbul:

1.      The completion of the construction of a residential or commercial project that was under construction when the property was purchased in it, and this is one of the most important factors that cause the rise in real estate prices, as we can within only two years obtain an increase in the price of the property by 50% if the project is chosen in the right location and at the ideal time, let's be realistic, this is never easy, so it is better to consult a real estate team with many years of experience in the field of real estate in Istanbul.

2.      The opening of a new metro station or transportation in general near the project leads to an increase in real estate prices in a manner commensurate with the importance of this line and the extent of the facilities it will provide, and this importance increases if this line of transportation reaches Istanbul's new airport, and it will undoubtedly affect the rise in real estate prices on either side.

3.      A new government project such as the construction of the Eurasia Tunnel or the third Istanbul Bridge or even the new Istanbul Canal project, in the case, that the canal project is implemented, real estate prices on both sides of the canal will rise in a foolish manner, it will represent the new Bosphorus Strait, if this project is actually approved and started, we will witness real estate values ​​increased several times along the 7 km length of the canal.

4.      Sometimes the negative impact on real estate prices leads to their decline, for example, real estate that was and is still being marketed by many real estate brokerage companies in the Basin Express area as the new Istanbul business center and it is near Ataturk International Airport that lost its importance after the closure of The International Ataturk Airport and the opening of the New Istanbul Airport. Perhaps the Sisli and Kagithane areas now took that important after the announcement of the new metro, which will arrive at the New Istanbul Airport at the end of 2020.

5.      The most important factor that also leads to lower real estate prices is the excess supply. We also take an example of that, the Basin Express road includes more than 30 projects between recently delivered and projects still under construction. The presence of a huge number of these new projects in one area will make the demand small. The supply is plenty, and therefore these projects will never be suitable for investment.

6.      The decrease in the prices of the real estate against which the towers are built causes the view to be obscured, especially if it was a sea view that was initially the reason for the high price of the property upon purchase, to choose the strategic location in the present and in the future, it is necessary to seek the help of experts who have a future view of the area in general and the project in particular, in which you want to buy a property, you can get a free consultation from our specialized team.

7.      Traffic congestion in the suburbs already far from the center of Istanbul leads to a decrease in the desire of the tenant and the buyer to obtain a property in which he suffers every day to reach the city center, especially if these properties when purchased do not suffer from traffic congestion problems.

8.      Traffic congestion in suburbs far from the city center reflects positively on real estate in the city center, and the demand for it increases, whether for rent or purchase and therefore in most of our advice we direct that successful real estate investment is in the city center. No matter how remote suburbs grow and develop, all of this makes the city center a more important and more sought-after place, especially for commercial or real estate suitable to be a place of work and residence at the same time.

9.      The establishment of new projects within the old neighbourhoods leads to a decrease in the value of the neighboring old projects as there is less demand for them, whether for rent or purchase, and at the same time the price of the new property that was established in this area rises above the average price in it because attention is directed to it, but that is on condition that there are not many new projects in the same area, otherwise we return to the previous point that there is a lot of supply and little demand, and therefore prices will be falling.

10.  The establishment of schools, universities, and transportation stations near residential projects leads to an increase in demand for them, and consequently to an increase in the rental income and price when selling, and on the contrary, moving a basic university center to another place that negatively affects the nearby real estate that was purchased with the aim of renting it to students.

 

The conclusion is that there are housing projects and investment projects in Istanbul, and there are projects built to benefit from renting them only temporarily, and some of them are built for long housing and stability. Before starting your journey to search for the right property, get a free consultation from our specialized team by contacting us.

 

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