Niches in the Istanbul property market

In a previous blog, I touched upon the opportunities for Istanbul property owners to let out their properties on a short term basis to the ever increasing number of tourists. This has been a niche market where investors have been able to use their human capital and sweat to produce better than average returns, and in many cases, set up small operations that provide enough income to justify their putting a full time effort into it.

Of course, in property markets that are expanding, such as Istanbul, there area lot of alternatives that perhaps investors may want to turn their attention to. Below are just a few that I want to draw attention to.

1-the summer home market within driving distance of Istanbul seems to be getting increasingly more attention. Areas such as Lake Sapanca seem to creating a lot of buzz, particularly with Arab investors. Seen as a lush and temperate alternative to their native lands where summers are barely livable, Sapanca offers villas at affordable prices ( www.myvillasapanca.com/ ) and large enough to house the sometimes very large families. There is no doubt that this trend will continue and that land values in this area will rise, as well as touristic ventures of all forms.

Serene beauty

Serene beauty

I would not put it in the undiscovered category, but there really is so much potential for 5 star hotels, residences, spas and  business focussing on wellness trends. It is hard to see the downside of this area, being naturally beautiful and just a two hour drive from Istanbul. Typically, Turks with some wealth have always chosen the coastal areas for a second home.

2 hours from Istanbul

2 hours from Istanbul

However, a new set of wealthy class is seeking convenient getaways from the city that can be accessed year round on weekends. In a future blog, I will try to uncover some land deals for potential investors, as this seems the way to go. A ten year horizon could yield incredible returns.

 

2- Time shares. This is really so new here that it is hard to give much information, other than to say that this would certainly be an interesting angle for investors to explore, both from an owner of a time share to a developer of purpose-built time shares. As Istanbul’s role as business and tourist hub continues, more demand from wealthy business people and frequently returning tourists will swell. There is a new development on a largish scale in the Esenler area that is, again, being marketed to Arab buyers. This is a large, corporate-style time share, but one would imagine that smaller, more bespoke type of operations could generate some significant interest. This can also be an interesting alternative for those just wanting to get a foot in the market here, allowing them to do so without a large investment.

3- Student accommodation.

old style stooodents

old style stooodents

One thing that outsiders to Turkey may not know is that there has been a stunning rise in the number of universities such as Bilgi University and private education institutions that have opened their doors in the past decade.

The trend looks a safe bet to continue as the job market is demanding higher educated workers and earning spots in the top state universities are getting ever more competitive.

they're all like this nowadays...

students are all like this nowadays…

Though anecdotal, it seems there is a vast undersupply of affordable and purpose built housing for students. Properties in Tarlabasi and Aynali Cesme offer good University rental income.

 

 

 

 

4-

getting on

getting on

As the structure of Turkish families changes, albeit much more slowly than in western countries, it seems inevitable that retirement homes and nursing homes will become at least a bit more prevalent.

It may be seen by many as a sad state of affairs, but according to countless statistical studies, most countries, as they grow economically, also see rises in the number of such institutions opening.  One would also surmise that if women begin to take greater roles in the work force that this will further accelerate this trend.

 

5- Hey, get off that sofa!!! Again, as The power of the Turkish consumer grows, more and more are looking to fitness and leisure activities. Health clubs, once the domain of the wealthy, are popping up in most suburban neighborhoods and shopping malls. Here’s one of the good ones - http://www.njoy.com.tr/N/

One more rep!

One more rep!

Still, again anecdotally speaking, it seems Turks are still not engaging in sport enough and certainly not in enough varieties of sports. It is a pity that Istanbul did not get the Olympic bid, but one can hope that it raised awareness. The governing party seems to be supportive and are very concerned with the direction of today’s youth. Surely they will see the healthy body-healthy mind connection and devote more resources to this area. There is certainly evidence that this will be the case, though some ways to go yet.

Of course, this should be complimentary to efforts and investments that are made in the private sector.

I would be pleased if any readers would share there property niche ideas, as the above is by no means comprehensive…Hey, maybe we could even work on a joint venture!!!

If there’s any entrepreneurs out there that needs a well sourced piece of Istanbul real estate, then we’re more than happy to help find it! – www.lilimont-istanbul-realestate.com

 

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