Rents in Istanbul Take off

The property sector has overcome the hurdles of the elections and political uncertainty. Due to certain well-known reasons, the cloudy position experienced in the Turkish economy for a long time – in particular on the eve of the elections – has not hindered the property sector.

Hakan Erilkun, the Managing Director of Altın Emlak, stated that rents had hit a peak as well as 1 million 290 thousand residential properties being sold last year, despite the fact that sales from models were not recorded in the numerical data of TUIK. Erilkun also stated that close to 435 thousand properties had been sold with mortgages.

65 percent of property purchases are in properties with a rental return

Hakan Erilkun, the Managing Director of Altın Emlak
Hakan Erilkun, the Managing Director of Altın Emlak

Hakan Erilkun, who underlined that close to 65 percent of the property purchases in Istanbul were in properties with a rental return and had an investment objective, said, “These investments are pushing rental values to almost the level of group A in every region of Istanbul – in particular in the points where the level of income is mostly in groups B and C. It is not correct to say that the purchases of properties are very much concentrated at this location today. That is because with the budgets and financing possibilities of buyers, the buildings which seemed valueless yesterday, but will multiply their values today due to urban transformation, are finding buyers at pace, both in new and second hand properties.”

35 percent increase in 6 months

Hakan Erilkun, the Managing Director of Altın Emlak, emphasized that there had been a conspicuous increase in rents, especially in the second half of the year, and continued as follows: “There have been increases in rents of up to 35 percent on average in the last 6 months, at the well-known centers of the city. This has brought with it increases in prices due to demand in the mass housing regions as well, due to the activity in those regions. For Istanbulinstance, while the price of a 100 square meter property in Beşiktaş, which could have been let for 2 thousand 400 TL in the first quarter of the year, has risen to 3.800 TL today, a property in Halkalı, which was 700 TL, can today be let for a minimum of 950 TL.”

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