Area Guide

Napoleon once stated, “if earth was a single state, then Istanbul would be its capital.“ For those who have visited or lived in Istanbul, Napoleon’s words ring even truer today. Positioned on the European and Asian continents, Istanbul is divided by the famous, romantic, and sometimes tragic Bosphorus Strait, hence the reason many novelists have spent their time within the city walls to draw their inspiration.

Now, on to the geographics of this often-times misunderstood community. On each side lies sprawling and historic neighborhoods, boasting bazaars, historical sites, watering holes, and most importantly, 20 million residents that call Istanbul home. Due to the massive population explosion of the late 1910’s and early 2000’s, Istanbul is currently experiencing massive regeneration to upgrade the homes that were quite literally thrown together to support the cities rising numbers. Rather it be the historic areas of Sisli, Kadikoy, Umraniye, Beyoglu, or Zeytinburnu, transformation is taking place at breakneck speed. This is much to the delight of the long-time Istanbulites who are tired of the over-crowding and lack of space for their leisure time.

Istanbul is one of the worlds largest metropolitan areas. Made up of 27 urban districts, they are split between Asia and Europe. On the European side there is Avcılar, Bağcılar, Bahçelievler, Bakırköy, Bayrampaşa, Beşiktaş, Beyoğlu, Eminönü, Esenler, Eyüp, Fatih, Gaziosmanpaşa, Güngören, Kağithane, Küçükçekmece, Sarıyer, Şişli, and Zeytinburnu.

In Asia- Beykoz, Kadıköy, Kartal, Maltepe, Pendik, Tuzla, Ümraniye, Üsküdar, and the Adalar Islands.

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Here at Prime Property Turkey, we focus on areas that have a few key indicators to a successful investment.

1. Supply vs Demand – There is a reason this is one of the first economics principles taught in universities across the world. However, we take this one step further. We focus on your goals and initiatives. If you have a 15- year exit strategy, then maybe an oversupplied new regeneration is exactly the item you are looking for so we can capitalize on your exit. Understanding your goals are key to us providing the best property with the prime result.

2. Annual ROI vs Capital Growth, which one is more important? Well, that depends on each individual situation. While some need more to their immediate bottom line, others choose to draw median returns in hopes of capturing greater capital gains.

3. Is this a purchase for lifestyle, holiday, or purely investment? These three different types of buyer’s dictate our strategy and advisement. At Prime Property Turkey, we believe each and every buyer is different in their own right, and thus should have a customized and tailored plan of attack to suit their needs.

4. Risk vs Reward…. This is oftentimes misunderstood, as property leaves you with fewer risks compared to the latest short stock or international equity. However, there are certain opportunities in the market where more risk is involved. We perceive these risks as under development properties that can be bough at grassroots prices, yet are a year or more away from delivery. The risks are obvious, but history has shown that gains of up to 40% are possible by the time the project is completed. While this option isn’t for everyone, it is a legitimate option depending on the clients needs.

Now that we have touched on Istanbul, the geography, and our principles, let us take a look at some areas and how we categorize them. Many agencies may claim certain areas to be zones of 1, 2, and 3. While very basic, they are categorizing their importance of each zone, with 3 being the lowest. At Prime Property Turkey, we categorize each zone by what it offers, rather than how much money we stand to make. A keen investor would catch such remarks, but the “market insiders“ cover their tracks quite well.

area guide
Western Istanbul

Western side of Istanbul. This includes the neighborhoods of Avcilar, Beylikduzu, Buyukcekmece, Esenyurt, Basaksehir, and Kucukcekmece. This area we categorize simply as the “West-Side.“ These areas offer options suitable for holiday, lifestyle, and investment. However, it does go back to our key indicators to how it best fits your goals. An immediate look at the inventory will tell you that there is somewhat of an oversupply of properties. What if fails to tell you, is that is one of the most heavily invested areas in Turkey. Why? Price….Simply put, properties can be purchased here at fractions of options in other parts of Istanbul. When we discuss strategy and investment, this area offers yields on par with most other areas of Istanbul, but growth will be at a slower rate. That’s not to say some major infrastructural changes cannot bring about immediate change, but this is an area where we should focus for a long-term exit.

With that being said, tremendous options at below average prices can be had here. Those looking for an investment with some lifestyle attributes behind the purchase, tend to buy in this area.

What are the demographics of this area? In areas around the marina and coastlines, you have some of the wealthiest Turkish and international population within Istanbul. The inner parts are highly urban with a diverse mix of immigrants from the Middle East and South East Asia to go along with the dominant Turkish population. Many industries relating to food, textile, and manufacturing are here.

prime area guide
Neighborhood spotlight
Central Istanbul

Central Istanbul is comprised of the following neighborhoods: Bakirkoy, Bagcilar, Beyoglu, Eyup, Fatih, Kadikoy, Maslak, Sisli, Uskudar, Umraniye, and Zeytinburnu.

While this ranges from the Golden Coast of Zeytinburnu to the bustling streets of Bagdat Avenue in Kadikoy, Central Istanbul has become more accessible with the recent connections of the Istanbul Metro System. The furthest corners of Kadikoy and Bakirkoy can now reach Yenikapi within 20 minutes by metro. How has this impacted the market? It has allowed residents who once were limited to only very central areas to move to the surrounding areas, improving their quality of life and offering a more comfortable lifestyle for their families. We love this area for those seeking a lifestyle and investment purchase in Istanbul.

Why is this area good for investment? As we mentioned earlier, Istanbul went from around 3M residents in the 1960’s to around 20 million by 2020. Housing was quickly erected to accommodate the growing numbers. With judicial reforms and safety inspections being conducted in recent years, these areas are experiencing mass regeneration. These new developments offer low prices for otherwise highly-priced properties due to most home owners having lived in the area for at least 10 years or more. Easy access to services, schools, and hospitals continues to drive prices in the area. Additionally, as traffic continues to wreak havoc on residents, more and more are looking to set up in easily commutable areas. These areas have to many positives to list.

To conclude, we should note that entry level prices are higher than in other areas, and this is particularly true with luxury-high-rise buildings in this location as branding and luxury is delivered to the highest level. While some investors may be put off by the base level price, this is a fantastic location for those looking for a hands-off approach to investing. Nightly, weekly, and monthly opportunities present themselves in this area for those looking to capture a piece of the tourism pie.

Demographics? Typically, this area boasts a younger and educated population. The locals of the area usually work in white-collar positions allowing them to have the expendable income to purchase such properties. However, certain areas of Beyoglu, Fatih, Kadikoy, Sisli, and Uskudar have large swaths of low-income areas. This is mainly due to lack of planning’s for new developments being allowed in these areas, plus these areas are near the service industry sectors that support Istanbul’s millions of visitors annually. However, we do expect this to change in the coming years as the municipality government looks to “clean“ up the area and instill a new version of Istanbul. Many in local government wish to see the restoration and recreation of Istanbul in a modern form. We are getting there, which is why foreign investment continues to rise. History is being written in front of us. Where do you want to be when the story is written?

Neighborhood spotlight
area guide turkey
Eastern Istanbul

Often an unknown and scary area for foreigners and tourists alike. As the American expression goes, “you are often afraid of what you don’t know.“ This is very true for the Eastern part of Istanbul. This area has some of the cleanest and most family-oriented coastline neighborhood’s in Istanbul. Yet many foreigners have never ventured as far to find out for themselves. Though this is slowly starting to change, it is still a very “Turkish“ area.

Eastern Istanbul is comprised of Beykoz, Dragos, Kartal, Pendik, and Tuzla. While oftentimes not familiar with folks from outside of the region, Tuzla and Pendik is slowly tabbing itself as the “Silicon Valley“ of Turkey. Many international Middle East, Eastern Europe, and Africa IT companies are establishing themselves here due to Turkey’s huge numbers of qualified software/network/structural engineers. Where there comes potential, there comes reward, and this area is no different.

This area boasts very-low entry level prices and large units compared to more central parts of the city. The neighborhoods tend to have been planned in accordance with up-to-date laws and prudence. Meaning, less regeneration is taking place here. How is this to your benefit? Well in the short-term, it honestly is not. However, as the technology sectors and natural appreciation occur, 5-8 years down the road lends itself to significant gains in rental returns, but also capital growth.

We do want to take a special mention for our clients and say that this is a very “under-the-radar“ type area. This has the potential long-term be a very significant investment; however, patience is key. We love this for lifestyle purchases and those looking to capitalize on low prices and large units. This is a expectation vs reality investment. Know what to expect and know what to earn. If you understand and appreciate those factors, this will be a very fruitful investment.

What are the demographics of the area? The areas is comprised of around 40% with a Bachelors degree or higher. Many jobs related to the IT industry lie here. In addition, this area is a hub of logistics and manufacturing as international and domestic transport are key in these areas. The area is rapidly becoming more sophisticated as more and more industry enter the market in these regions. Should you want to be waging an investment on long-term growth, we can think of no better place.

Contact one of our friendly advisors who will be willing to advise and assist. Remember, here at Prime Property Turkey, we aim to “do it the right way“ every time we speak, meet, and buy. Your satisfaction if our number one priority. Our model is built on long-term relationship building and growth. Together, we can become the premium outlet for International Investment in Turkey.

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