Istanbul House Prices
According to 2022 data, the population of Turkey is 84 million 680 thousand 273 people. In order to meet the housing problem as a result of the dense population, construction companies build different houses from each other and offer them for sale every year. Due to the negative impact of the pandemic on the economy, the excess of supply, the increase in costs, real estate prices have increased much more than expected this year.
How Much Have House Prices Increased in Istanbul?
Istanbul house prices were on average 119% higher than the previous year.
Why House Prices Have Increased in Istanbul?
According to 2022 data, the population of Istanbul is 15 million 840 thousand 900 people. A significant part of the population of Turkey is located in this city. The demand for housing in the city where there is such a dense population is also high. However, due to reasons such as the decrease in the building stock, the problems experienced in the economy, and the high interest rates on loans, Istanbul house prices have increased.
Structural Factors
In terms of house prices in Istanbul, the Gölcük earthquakes in 1999 and the Düzce earthquakes in the same year in Turkey were a turning point for the construction sector. After this year, radical changes took place in the construction sector. This change was supported by changes in laws and regulations. With all this change, earthquake resistance requirement has started to be required in all buildings built after 1999 to the extent determined by the laws. The prices of these new buildings, which are built in accordance with the earthquake regulations, are higher than the old ones. Structural factors such as square meter of the house, floor where it is located, usage area, number of rooms, number of bathrooms are the main factors in determining the price.
Environmental Factors
Location has a significant impact on Istanbul house prices. Istanbul is a city on the Marmara Sea, connecting the Asian and European sides. The continent where the house is located, neighborhood, street, avenue has an effect on prices. The closeness of the house to some places such as hospital, school, bazaar, children's playgrounds, ease of transportation, parking, green space, closeness to social areas and facilities, being in the site, security, housekeeping are effective on Istanbul house prices.
Period of the Return of the House
The fact that a purchased house deducts its own price due to rent or value increase is called return (Depreciation). The shorter the depreciation period, the more profitable the purchased house is considered. The average period of return (depreciation) in Turkey is calculated as 16 years.
How to Calculate the Period of the Return (Depreciation)?
The number of months of depreciation is found by dividing the purchase price of the house by the rental price. According to January 2022 data, the districts where prices increased the most in Istanbul were Beşiktaş, Beykoz, Bakırköy, Beyoğlu and Adalar. As a result, the determination of housing prices is formed by the combination of many different factors. The increase in housing prices causes rent prices to increase. This situation affects social life negatively. In this respect, it is very important to produce and sell houses that are as accessible as possible.