Real Estate

Istanbul is the most attractive city in property affordability compared to European metropolises

According to Nevita’s research, Istanbul continues to attract investors due to the fact that the desired value has not yet been reached in housing.

According to the research of Nevita, a real estate sales company to foreigners, Istanbul stands out as the most attractive city among the metropolises in Europe in terms of average housing square meter price.

Istanbul, which is one of the most preferred cities for foreigners in housing sales in recent years, continues to attract investors due to the fact that the desired value has not yet been reached.

Half of the houses sold to foreigners throughout Turkey took place in Istanbul. While foreigners bought 20 thousand 857 houses in 2019, despite the epidemic 16 thousand 867 houses were sold in the January-November period of 2020.

Standing out with its national and international investment appeal, Istanbul is rapidly advancing among global cities in housing sales to foreigners. In this progress, it is of great importance that the city has not yet reached the desired value compared to European metropolises.

The average square meter price in house sales in Istanbul was measured as €462. This figure is €11 thousand 613 in Paris, €10 thousand 797 in London, €8 thousand 442 in Munich, €2 thousand 630 in Madrid, €3 thousand 346 in Lisbon, €3 thousand 41 in Bolzano, Italy and in Innsbruck, Austria, it goes up to €5 thousand 992.

It is noteworthy that the prices in these cities are very high compared to the country average. While the average square meter prices in Paris are up to 4.3 times higher than the general of France, this figure is 3.3 times the UK in London, 3 times that of Germany in Munich, 3.7 times that of Austria in Innsbruck, it’s 1.9 times Portugal’s in Lisbon, 1.8 times Italy’s in Bolzano, and 1.6 times Spain’s in Madrid. In Istanbul, the average square meter prices are 1.5 times higher than Turkey’s average.

“Turkey astonished European countries in this process”

Speaking to Anadolu Agency (AA) about the research, Nevita Chairman Faruk Akbal said that Turkey is continuing its strong performance in housing sales to foreigners, and Turkey astonished European countries with its success in this period.

Stating that despite the difficult conditions caused by the epidemic, the Turkish real estate sector has managed to maintain its sales figures in the past years, Akbal said, “However, the decline of up to 30% in sales to foreigners in European markets drew attention. The main factor in Turkey and Istanbul’s prominence is the trust of foreigners.”

Stating that housing prices in metropolises of the world are directly related to investor interest, Akbal continued his words as follows:

“According to the data we obtained from the statistical institutions of the relevant countries, square meter prices of housing in European metropolises such as Paris, London, and Munich can reach up to 3-4 times the average prices in the countries according to where they are located. For example, while the average prices across the country in France are at the level of €2,685, these figures go up to €11,600 in the capital Paris. We see a similar situation in London and Munich. According to research, this rate is 3.3 times in London and 3 times in Munich.”

Akbal stated that, according to the research of Endeksa, the average square meter price of housing in Istanbul is measured as €462, which corresponds to 1.5 times the average of Turkey.

“Investors are gravitating towards Istanbul because it has a high possibility of making a premium”

Faruk Akbal stated that cities such as London, Munich, Lisbon, Bolzano, and Madrid, which were mentioned in the research and stand out in housing sales to foreigners, have now reached saturation and said, “Investors focus on new centers where they can generate high premiums. With this approach, we see that investors from different geographies have shown interest in Istanbul for the last 3-4 years.”

Stating that it is not correct to measure this interest only with the sales realized, Akbal said, “Investors, who did not know the location of Istanbul 7-8 years ago, are seriously interested in Istanbul and its surrounding real estate today. We expect this interest to rise to much higher levels after the epidemic.”

Akbal emphasized that although there was a decrease compared to the previous year, 36 thousand 385 houses were sold to foreigners in the January-November period last year, there was a 4% increase compared to 2018, and the performance shown despite the epidemic was a clear success.

Reminding that Iraq and Iranians buy the most houses in Turkey, Akbal said that further diversification of the market will bring real estate value closer to reality.

Source: AA / Translated by Bazaar Times Team

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