Investment property in Istanbul

Investment property in Istanbul: building a sound case

Investment property in Istanbul should be judged on its total return, not on the asking price or a headline yield alone. Rent, running costs, vacancy, taxes and currency movements all affect the outcome, and each can be estimated before you buy.

Income and costs

Start with a realistic rent from comparable homes nearby. Then subtract building dues, property tax, insurance, maintenance, management fees and an allowance for empty months between tenants. Rental income must also be declared each year to the Revenue Administration (GİB).

Capital value and exit

Over a longer period, much of the return can come from changes in value, which are never guaranteed. Locations with strong transport, schools and employment tend to hold demand better. Our guide to the best districts for investment compares areas by these factors.

Where investors buy and why

Investors tend to focus on three types of area. Central business districts such as Şişli and Kağıthane offer strong tenant demand from professionals. Rail-connected outer districts such as Bağcılar offer lower entry prices. Regenerating coastal areas such as Kartal combine newer stock with views.

Compact one- and two-bedroom apartments usually let fastest. Furnished units suit corporate tenants, while larger homes suit families on longer leases. Investors who also want citizenship often split the budget across two units.

Next steps

Tell us your target return in your own currency and how hands-on you want to be. We then model rent, costs and vacancy for each option. Our rental management service can take over once you buy.

Furnished or unfurnished letting

Furnished flats attract corporate tenants and shorter leases, often at higher rents. Unfurnished flats attract families who stay longer, which reduces vacancy. In addition, furniture wears out and needs replacing. We help you choose the format that fits the building and the likely tenant.

What makes an apartment easy to let

Tenants in Istanbul tend to search by commute first. Apartments within walking distance of metro, Marmaray or Metrobüs stations, close to universities, hospitals or business districts, and in well-managed buildings usually attract the widest demand. Compact one- and two-bedroom units are the most common choice for investors, because they match the largest group of tenants: professionals, couples and students.

Judging the numbers realistically

• Rent: use current rents for comparable units in the same building or street, not district averages or developer estimates.
• Costs: service charges paid by the owner when the flat is empty, property tax, insurance, maintenance and, if used, a management fee.
• Vacancy: allow for periods between tenants.
• Currency: local residential rents are usually agreed in Turkish lira, while many buyers measure returns in another currency.

Rental income and price growth are never guaranteed. We show you the assumptions behind every figure so you can make your own judgement.

Long-term or short-term letting

Most investment apartments are let on standard residential leases. Short-term holiday letting in residential buildings is regulated: it requires a permit from the tourism authorities and, in apartment buildings, the consent of the other owners. Many complexes do not allow it at all, so check the rules before you rely on short-term income.

Tax points

Rental income from property in Turkey must be declared in Turkey, including by non-resident owners, and annual property tax applies. Gains on a later sale can also be taxable depending on the holding period and other conditions. Our guide to costs and taxes when buying property in Turkey gives an overview; your tax adviser should confirm your position.

How we help investors

Our advisory service is free for buyers. We shortlist units with genuine letting potential, compare buildings, check title and permits, and coordinate the purchase. After completion, our after-sales and rental management services can furnish the apartment, find tenants and handle day-to-day management. Third-party costs and management fees are agreed separately.

Useful starting points: apartments near metro stations, apartments under USD 150,000, our guide to the best Istanbul districts for property investment, and the investment property search.

Frequently asked questions