The Global Residential Cities Index by Knight and Frank tracks the movement in average residential prices across 150 cities worldwide. According to the Q1 2018 results, the index rose by 4% in the year to March 2018.
Three Turkish cities are listed in this index with good appreciation rates. The residential prices increased in Izmir, Turkey with 16.5% in 12 months, making Izmir the second best profitable city after the Indian city of Surat.
Taking into account that the average increase was 4% in 150 global cities, and the prices in Dubai and Abu Dabi has decreased by 4.8% and 7.2% respectively, Izmir, Turkey is definitely one of the best places to invest real estate.
The increase rates in Ankara and Istanbul were 5.6% and 3.8% respectively. The increase in Ankara is over the global average, where the increase in Istanbul is almost the same as that of the average.
With the fast and convenient transportation facilities between Izmir and Istanbul, real estate prices in Izmir have started to increase. The prices of housing and land are increasing in the coastal strip of Urla, Çeşme, Seferihisar, and Güzelbahçe.
Cesme, Urla, Guzelbahce Karaburun, Kemalpasa, Torbali, Menemen and Seferihisar are popular locations for land investments.
Izmir is a city with a net migration rate of 5% and over the last 3 years. This causes an increase in real estate prices. With the impact of urban transformation, central districts such as Bornova, Bayraklı and Karsiyaka have become popular housing investment areas.
The average housing price per square meter in İzmir is 2.725 TL, the average housing price is 337.000 TL, the average rent is 1.430 TL and the return period of housing investment is 20 years.
The average housing price and return on investment according to the number of bedrooms are as follows:
- For 1 bedroom apartments: 183,000 TL and 16 years.
- For 2 bedroom apartments: 235,000 TL and 18 years.
- For 3 bedroom apartments: 342.000 TL and 22 years.
- For 4 bedroom apartments: 734.000 TL and 23 years.
In central districts, the average housing price per square meter, the average housing price, the average rent and return on investment are as follows:
- In Bornova: 3075 TL/m2, 364,000 TL, 1380 TL and 22 years.
- In Bayraklı: 2725 TL/m2, 343,000 TL, 1560 TL and 19 years.
- In Karşıyaka: 3150 TL/m2, 384,000 TL, 1580 TL and 21 years.
Guzelbahce and Urla, which stand out with its proximity to Izmir city center and detached housing projects, became the focus of interest for those who prefer housing with high income level and villa type.
Housing prices in Güzelbahçe vary between 250,000 TL and 1,200,000 TL. The average housing size is 180 square meters, the average residential square meter sales price is 3,850 TL, the average housing price is 694,000 TL, the return on housing investment is 24 years.
In Urla, housing prices range from TL 280,000 to TL 1,890,000, average housing size is 175 square meters, average housing price is 4.100 TL, average selling price is 720.000 TL, housing investment returns 22 years.
In Seferihisar, recently, villa-type housing projects began to take place. This led to an increase in housing and land prices in the region. According to the index data, housing prices in Seferihisar range from 165,000 TL to 490,000 TL. The average housing price per square meter is 2.400 TL, the average housing price is 290.000 TL, the return period of the housing investment is 21 years.
Menemen and Torbalı districts stand out with housing projects addressing the middle income level in the last year.
The average residential square meter sales price in Menemen is 1800 TL, the average housing size is 130 square meters, the average housing price is 230.000 TL, and the return on housing investment is 21 years.
The average housing price per square meter in Torbalı is 1.475 TL, the average housing size is 136 square meters, the average housing price is 200.000 TL, 23 years with the return period of housing investment.