Ferikoy: bargain hunter’s kill zone

Ferikoy is surely a neighborhood that will experience very good capital growth. It is very central in Sisli, and only about a 10-15 minute walk to Osmanbey, the nearest metro stop. In many ways, Ferikoy has not had its day in the sun due to the impressive surge in popularity of adjacent Bomonti, which is truly booming and has the crown jewel of the sparkling new Hilton.

Once quite ethnically mixed neighborhood composed of Armenians, Greeks and a Jewish community, it now is home to working class Turks. However, a change is discernible, with many local business owners becoming wealthier, their appetites for more appealing housing has become evident with the many new constructions sprouting up.

Pretty smart

Pretty smart

Furthermore, many Turkish people, revolted by the commutes to outlying suburbs are scouring these once forgotten neighborhoods, undoubtedly seeing that the calculations tips into Ferikoy’s favour when travel costs and ever-important time is taken into account. Add to the fact that Ferikoy actually has a neighborhood feel and a sense of vibrancy, it is no surprise that it is starting to get much-deserved attention.

An exceptional Antiques market

An exceptional Antiques market

As prices in nearby Bomonti seeme destined to break the 3000 USD/ square meter mark and Nisantasi, a brisk ten minute walk, considerably well beyond that mark already, it makes sense that prices in Ferikoy, which start at 1500 USD/sqm, are at attractive levels for investors as well as those locals desperately trying to avoid coughing up a large portion of their monthly income to generally rising rents.

The only thing that stops nearly every single property in this area from getting snapped up is the stringency of the banks and their common approach of rarely exceeding loaning more than sixty percent of the true market value of these properties, thus making it difficult for budget (i.e. Low-mid income buyers) to come up with what still amounts to a sizable downpayment. Further keeping a lid on matters are the high loan rates that drive up monthly payments to the point where the loan terms are mostly not much more than five years, with borrowers eagerly closing them before the full term, if at all possible. Here’s a great deal  - Lilimont Ferikoy

Rental properties in the area start from 600 USD for a one bedroom and up to 1000 USD for a two bedroom, with rental contracts usually agreed in TL.

If nearby neighborhoods provide any example, it seems likely that these will steadily increase in the next few years, possibly as much as 40-50%, making the future yield look very strong.

With Bomonti starting to look more and more like one of Istanbul’s most successful urban regeneration zones, it does not tax the imagination to feel that where Bomonti goes, so will Ferikoy.

Flats in need of tasteful renovation abound and are ready for the enterprising investor who, mind you, should look for a realistic return, perhaps 20 percent for a project.

www.lilimont-istanbul-realestate.com

 

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