Evaluating the question “Is real estate a good investment?” in relation to the locations, the pay-off time, and exchange rates, real estate experts highlight the city centers.
If you’re going to invest in Istanbul, it’s better to stay close to the city centers. If your budget is tighter, then you can evaluate other locations as long as you come across bargain prices or trust the investment area.
The point here is that you should know when to close the deal. You should determine a price and close to deal when you come across it.
The industry sees that property in central Istanbul appreciated nearly sevenfold, while suburban areas increased in value roughly three times. Another point would be not to skip the passive income evaluation of the investment, which means the rental income. Is real estate a good investment? It is up to the location.
Post-pandemic Real Estate Investment
Due to the pandemic, many countries had to deal with problems they couldn’t solve on their own.
For the world economy to return to its old dynamic structure, countries need to cooperate better. Experts foresee that 2021 might bring growth figures higher than expected. With its robust economic infrastructure and political skills, Turkey will no doubt clear out the financial damage quickly in the following years.
Mixed-use projects that are in central places and gather everything we need seem to outshine others after the pandemic. Those who wonder “Is real estate a good investment?”, need to evaluate the post-pandemic atmosphere.
Where to Invest in Land in 2021
There are some districts in Istanbul that dramatically increased in value, thanks to the third airport, third bridge, and Marmara highway. Such districts see a boost in land and housing prices. Some of them are Kayaşehir, Altınşehir, Çekmeköy, Arnavutköy, Poyrazköy, Yeniköy, Karaburun, and Halkalı.
Aiming to unite airway, railway, highway, and seaway trade in Istanbul’s Karadeniz coasts, the One Belt One Road project will create new urban areas and a logistic base on northern Istanbul.
After the devastating earthquake in 1999, Istanbul has undergone a transformation. Buildings built after the earthquake are preferred better. If you’re a short-term investor, opt for buildings constructed after 2000, particularly in recent years.
Pandemic Changed Housing Trends
We see that the “new normal” where we spend most of our time in our houses and companies shift to remote work model will change the real estate preferences forever.
Particularly people who are worried about future pandemics opt for houses with big balconies or gardens. This trend increased the search for houses with gardens by 200%.
Detached houses with gardens in projects in Bahçeşehir and Büyükçekmece districts create alluring opportunities for real estate investors.
On the other hand, the pandemic affected the office and commercial unit investments, as well. Companies who got used to the home-office model will prefer smaller places. 100-square meter offices will make the investors content.
Is Real Estate A Good Investment In Areas Away From Istanbul’s City Center?
Due to the changing structure of Istanbul in the past 20 years, each district has its own business and shopping areas. Therefore, you should consider stores and offices near shopping centers and roads, regardless of the district.
In addition, urbanization in the north of Istanbul will result in an expansion outside of the city. Long-term investors should consider land investment in Çerkezköy-Çorlu line to the northern Marmara.
Is Real Estate A Good Investment in 2021?
2021 started hopeful for the real estate industry, however, the rest will be determined by the pandemic. If the pandemic comes to an end through vaccination, which seems to be the case, developers that sold off their stocks this year will end new investments, as they couldn’t start new ones due to the pandemic, and many projects were put on hold. The answer to your question “Is real estate a good investment?” will probably be “Yes” in near future.
The Goal is 1.5 million House Sales
According to November data of TÜİK, 1.393.335 houses were sold between January-November, which indicates an increase of 21.5%. Despite high-interest rates in the past three months, monthly sales are above 100.000, therefore the goal can be achieved.
Foreign Investors’ Interest for Citizenship
In the first quarter of 2021, 24.3% of the real estate investments in Turkey were for citizenship acquisition. Foreigners who acquired citizenship by investment bought 2.963 houses and mostly in Istanbul, a city where 80.9% of citizenship investments were made. Istanbul was followed by Antalya, Ankara, and İzmir. The question “Is real estate a good investment?” results positively when given the citizenship opportunity.
Foreigners Buy Houses in Tourist Areas
Investors showed a tendency towards detached houses and villas in vacation towns. Mediterranean and Aegean regions were affected most positively. More and more tourists visiting coastal cities wanted to buy a house in Turkey, mostly in Kuşadası and Bodrum. Investors who wonder “Is real estate a good investment?” will say yes after they invest in Bodrum.
Will Housing Prices Decrease in 2021?
Prices for houses for sale are determined by credit interests. Particularly due to the interest rates, 0.64 rate in 2020 July will most likely never occur again. For housing loans, it’s not to receive credit with lower interest rates in 2021.
Housing Prices in the Second Half of 2021
High compensation demand and low financing mean the real estate industry will see a difficult year. However, this will result in lower prices towards the end of the year.
We believe the state won’t increase the financial support. In this case, those in urgent cash need and who will sell their homes will probably take the housing prices lower than the inflation rate.
In short, the last months of 2021 will probably see a decrease compared to the inflation rate.