Istanbul Property, Capital City Growth Without The High Price Tag

Istanbul PropertyI don’t know about you but when it comes to property investment, I don’t like to part with too much cash. I would much rather invest in a market where prices are low and capital growth is high but also a market where the property will pay for itself and I can rely on a return.

There are several cities in the world where I can go in and invest in cheap properties. I could look at African cities such as Cairo for example where the average price per square metre in prime inner city areas is $1,025/£642 or Dar es Salaam where the price per square metre is just $438, which works out at about $52,000/ £32,554 for a whole 120 sqm apartment.

Of course property investment is not as simple as travelling around the world and finding the cheapest cities, it is about getting value for money. I’m sure when most of us go shopping, we don’t necessarily buy cheap, we look for something that will last us. How many times do you go for something in the middle of the range?

When I was looking to buy a car recently I looked at all the alternatives, one was half the price of the one I had set my mind on, however I wondered how much the value of that car would fall in the time I owned it.

So instead I opted for the car that cost twice as much, but which I knew would not plummet in value due to a reputation for poor reliability and bodywork that would probably be rusty within 5 years. I also knew that my chosen vehicle had a reputation for reliability. I didn’t want the hassle of taking the car to the garage every few months.

Part of me wishes this car was a Ferrari or a Porsche, however this might cost me a small fortune to run and would be something of a luxury. A bit like investing in property in Monaco where the price of an inner city apartment would cost an average $52, 353 / £37,790 per square metre making it the world’s most expensive place to invest.

The gross yield in Monaco would be 1.64% according to data from the Global Property Guide, so there would be little point in investing here unless you have money to burn.

So when it comes to investing in property, the best locations will be those that, like my mid-range car, offer affordability, reliability and allow you to keep most of your cash because they won’t cost much to run.

This is what makes Istanbul property so appealing. Even though growth has exploded in the city over the past three years, with prices rising more than 10% a year and 100% in some micro markets over the past 7 years, Istanbul still ranks a lowly 29th in the world’s most expensive cities. Cheaper even than Athens with almost double the rental yield and half the risk.

So if you are an investor looking for a reliable motor or a reliable property investment, make sure you get the right combination right. That means not too expensive or too cheap, but somewhere in the middle is where you will find the real opportunities.

Are you a middle of the road investor or do you like to take a risk in the bargain basement? Please leave your comments below:

Kind Regards

Brett Tudor
Property Expert