With the Turkish housing market finally softening enough to let real estate investors and homebuyers back in, many are wooed by one-bedroom apartments as an affordable and practical way to commence investing in properties. Although nominal, traditionally, one-bedroom flats were perceived as a less desirable option, but does that opinion still hold true?
The simple and straightforward answer is: No!
One-bedroom apartments in Istanbul are an attractive investment option and essentially offer high ROI in districts such as Taksim, Besiktas, Basaksehir, and Sariyer. Ten years ago, the more rooms you could get, the better. However, in recent times, we are increasingly witnessing smaller, more convenient housing gain demand and furnish elevated ROI.
Here’s what you should know if you are thinking about investing in one!
Let’s begin with the obvious. As a rule of thumb, you should consider a 1+1 property if it is as centrally located as possible. People are willing to sacrifice inner-city living just for more built-up area and space but if they are giving a thought to a one-bedroom flat, they are seeking to find something expedient and in close proximity to work.
Ensure that the property is within walking distance or a few minutes of drive away from surrounding amenities. If the living, kitchen, and laundry areas are very small, it will make a huge difference to have facilities that fulfill your everyday needs close by.
A quick note on parking lots: An apartment without any parking space can be relatively harder to sell. If you do not have the option to get parking, make sure that the nearby regions and neighborhoods are well serviced and connected via public transportation.
When it comes to selecting a property in Istanbul, try to dodge your fetish for overdeveloped regions and generic high-rises. The oversupply of identical or similar apartments affects the rental value and capital growth of your property. Rather embrace and explore smaller, older housing units in the areas.
Nevertheless, it is crucial to gather as much information as possible about the demand, desirability, and popularity of the entire project before you commit. A lot of times, newly-built high rises with unique living concepts sweep away maximum buyers in the 0+1, 1+1, 2+1, and 3+1 categories.
Size and built-up area is another aspect to mull over. While one-bedroom properties are usually small, however, anything above 50 meters square would be an ideal option to consider. Additionally, a balcony is an expedient feature when it comes to investing in smaller apartments.
Views are indubitably appealing for any residential project but they count for so much more when it comes to choosing small spaces as they can make them feel expansive, airy, and less boxy.
Garden outlooks, natural landscapes, and flats with sea-views have significantly higher demands and are preferred more than losing a view to a neighboring development.
What does it mean for real estate investors?
One-bedroom apartments offer lucrative investment opportunities to real estate investors. However, when finalizing one, it is vital to get your exit strategy in place and well-evaluated. Having a deep understanding of the Turkish real estate sector will further broaden the chances of success and financial returns while selling-off the property at the right time.
Most buyers looking for one-bedroom flats can gather finances up to $200K. This implies that investors intending to sell in the mid-term should focus on houses between $100K to $150K. It offers some room for growth and assures considerate demands during resale.
Nevertheless, one-bedroom properties in Istanbul are economical: easy to maintain with lower utility costs. And crucially, since the market demand is high, they are convenient and easy to sell.
Recognizing the prerequisites for the cosmopolitan living standards demanded by the current working generation, real estate developers are constructing lifestyle hubs around the residential complexes. Projects now include amenities such as cafes, restaurants, shopping centers, and easy link-ups to metro stations. And as the new suburbs of Istanbul continues to expand, the municipality is responding with full on-site infrastructures such as hospitals, colleges, and leisure centers.
With years of experience in the Turkish real estate sector, we recommend exploring areas such as Basin Ekspres, Nisantasi, and Atakoy. These regenerating areas have a number of new developments geared towards working and young professionals seeking out one-bedroom apartments. Moreover, as the rental yield is relatively high, investors can gain a respectable rental income while holding their properties to appreciate in values.
To just get into the Turkish real estate market, many property buyers have been eyeing one-bedroom apartments as a convenient and safest way to inject capital into housing units. The good news is that 1BHK spaces are no longer at the bottom of the pile when it comes to investing in real estate in Istanbul. The recent data from TurkStat signifies that the housing industry has experienced solid growth in the past five years.
If you are wondering whether to hold and save until you can afford a larger space or take a leap and purchase a one-bedroom apartment now, we’d suggest you go for it! To know more about property listings, connect with our real estate experts here.