Real estate is like other commodities in various markets whose prices change, high and low, according to many factors affecting the increase and decrease in demand in the real estate market, but there are many constants that give the property a value in its market that cannot be reduced and that change with the change in the region in which the evaluation is done .
Our article today is to talk about how to determine the prices of one of the most popular types of real estate, which is apartments in the city that is distinguished by its most active real estate market in Turkey, which is Istanbul.
Prices of apartments in Istanbul:
Each of the European and Asian sections of Istanbul has its regions, and each of these regions has its own characteristics that control the prices of apartments in it, such as the region’s infrastructure, tourism activity and other factors that make some regions superior in importance to other regions and make their real estate shares rise within the real estate market in the city.
Factors controlling the prices of apartments in Istanbul?
We will mention in detail the main points that control the value of the property which are relied upon:
-Determining the price of the apartment according to the location:
The location of the apartment is one of the most important factors that directly control the price of the apartment. The apartment is evaluated based on its location according to the following:
*Distance and proximity to the city center:
The city center is the most vibrant and active location in which most government institutions, public and private companies, as well as public and private banks congregate, so life in it will be more practical and active, which in turn contributes to an increased demand for it. Therefore, the sale prices of the apartments closest to the city center are higher than those far from it, and also the rental prices of these apartments are high, and this increases the importance of the apartment in the real estate investment market because of its high monthly return.
* The apartment’s proximity to the transportation network:
Transportation is a very important factor in determining the price of the apartment and is no less important than the location factor.
The proximity of the apartment to the means of transportation makes living in it more comfortable and practical, because it facilitates transportation from the location of the apartment to various areas near and far from it, for example, the worker or employee on a daily basis who is living in an apartment that facilitates his transportation to his workplace will enjoy a higher degree of comfort than the worker residing in an apartment far from the transportation lines, which costs more time and effort. Therefore, the apartment’s proximity to transportation of all kinds, such as airports, metro lines, public bus lines, or other means of transportation contributes to raising its price within the real estate market in Istanbul.
*The apartment’s proximity to important projects:
The apartment near the sites of the mega projects established in Istanbul is considered the highest value in the real estate investment market in Istanbul, due to the increased importance of the investment area for various types of investment, and because of the great demand by workers and employees to this area, which results in a greater demand for apartments in it, because such projects greatly increase employment opportunities for both foreigners and Turks, and therefore the prices of apartments are rising in them.
Apartment prices are increasing gradually and are expected to achieve high values with the start of work on the canal project, as well as for apartments in areas near Istanbul’s Third Airport and other important projects in Istanbul.
*The proximity of the apartment to the active tourist places:
The importance of the apartment in the tourist areas in the real estate investment market rises, and consequently, its prices rise within the real estate market in Turkey.
The apartments near the tourist attractions and historical and archaeological landmarks are considered to be more expensive compared to other apartments due to the great demand for them by tourists to these areas, which brings them a high investment return and significantly in the peak tourist season.
*The proximity of the apartment to the infrastructure centers:
The apartments near the sites of integrated services, such as educational services represented by various schools and universities, and health services such as hospitals, health centers, clinics and pharmacies are of high prices because they are the most capable of securing an integrated life for their residents, ensuring that they and their children always have their basic needs, and the apartment is close to facilities with recreational services such as parks., playgrounds and others have a higher price because it guarantees a higher level of luxury for its residents.
*The apartment’s proximity to shopping centers:
The prices of apartments close to the commercial centers and markets, those vital areas that guarantee the various necessary and secondary needs of the residents of these apartments, are rising, and consequently they their prices rise in the real estate market.
The beautiful view of the apartments is receiving more demand from real estate investors due to its high value in the real estate investment market by tenants or those who want to buy an apartment to live in, and the best thing that distinguishes it will be that its residents have the highest amount of breathing space represented by the view of the apartment, and therefore the view of the apartment controls its price also.
-Determining the price of the apartment according to its specifications:
The specifications of the apartment are also relied upon to determine its price within the real estate market in Istanbul, and this is done based on:
*The construction age of the apartment:
The age of the apartment controls its high price, as the newly built apartments are more expensive than the old apartments that were previously used for housing and may need many repairs.
The price of the apartment increases and decreases with the increase or decrease in the area of that apartment, but there is a great overlap between the factors controlling the price of the apartment. Sometimes one of these factors outweighs the other factors, for example, we can often find a small apartment near the city center that is more expensive than a spacious apartment located on the outskirts of the city. In this case, the location of the apartment was more important in determining its price than the size of the apartment.
But in cases where two apartments are compared in the same location, two apartments near the city center, for example, the price of a spacious 1 + 3 apartment, for example, will be higher than the price of a small 1 + 1 apartment that is suitable for a single person.
*Apartment finishes and design:
An apartment with better interior finishes and architectural design is more expensive than poor finishes. It is natural for an apartment with distinctive architectural design and interior finishes to be more attractive to the eyes of real estate investors than an apartment that contrasts with specifications, and thus will achieve higher demand in the real estate market and increase its investment value.
*The location of the apartment in the building:
This means to compare the apartments located within the residential complexes and the apartments located in separate buildings, where the prices of apartments within the complexes are higher than the second type, because the residential complexes in Istanbul are characterized by a high degree of protection and safety because they are equipped with surveillance cameras, protection systems and guards, in addition to the presence of a responsible for the maintenance and modernization of the apartment and the facilities within the complex, where the residential complex is provided with many recreational service facilities such as swimming pools, playgrounds and other facilities that contribute to making life within the complex more luxurious and therefore the prices of its apartments are higher.
*The value of the building that contains the apartment:
There are many independent buildings or apartments in Istanbul, which are distinguished by their historical importance as a result of their ancient construction, which dates back to a long time, and their ancient architectural designs similar to the palaces of the sultans. This type of real estate is characterized by its very high prices and it needs a real estate investor with a very high capital to purchase this type of apartment.
*Floors and stories:
Some people prefer apartments located on higher floors, while many of them want lower floors, but in general in Istanbul, the price of the apartment rises the higher it rises from the surface of the ground, because it guarantees a higher and wider view of the apartment’s residents and is more away from the congestion and noise of the street in addition to its pollution, and the height will not cause them to have a problem going up to their apartment due to the availability of elevators.
The apartments within the construction projects that use the finest types of building materials in their design, and that are designed according to international building standards, which guarantee protection against earthquakes and against weather factors such as cold and heat, are more expensive than other types of apartments of lower quality.
Furnished apartments with integrated furniture are more expensive than unfurnished apartments, and the better and more usable the furniture, the higher the price of the apartment.
*Nature of the area:
The real estate of some areas is of higher importance in the real estate market than other areas, and the prices of apartments in them are higher, and this rise is imposed by the nature of the region. For example, apartments in the Basın Ekspres area are considered high prices, because the area is of a very upscale nature and is considered one of the areas of the wealthy and businessmen, and this is why it controls the evaluation of its real estate prices.
*The future of the region:
The prices of apartments in some developing areas of Istanbul, in which the construction movement has begun to spread recently, or in which the government plans to establish projects, are considered to have prices that are constantly rising due to the future awaiting this area, which affects the importance of real estate in it. Modernity of its services: The apartments with modern services are more expensive than the old classic apartments that are empty, and in the recent period, smart apartments have spread in the city of Istanbul, which are characterized by automated systems that allow the residents of this apartment to remotely control all the apartment facilities, such as opening doors and windows using a mobile phone or programming them to open in an automatic way or controlled door lock to open using a fingerprint or a dedicated card and other advanced service methods.
These types of apartments achieve very high prices, because they provide a great deal of protection, comfort and luxury for their residents at the same time, and smart apartments in Istanbul vary among the fully automated apartments or semi-automated apartments or apartments that include the automation of the protection system only, and this diversity is accompanied by a price gradation, where fully automated apartments are the most expensive.
Hotel apartments, which are classified as commercial real estate in Istanbul, are more expensive than other types of apartments due to the great importance of Istanbul in tourism. Building complexes with a profitable system that guarantees a high profit return. These apartments are of the preferred type for tourists and are in great demand by tenants.
There are also office apartments that guarantee a high and continuous investment return, because they are of the type required by companies and banks that want to open branches in the city of Istanbul and that aspire for a long stay in the same place in order not to lose their customers and therefore the value of these apartments is high in the real estate investment market and this leads to their high prices.
Istanbul is characterized by a large spread of construction projects in its various regions, and most construction companies allow the possibility of buying apartments while they are still under construction, and certainly the prices of these apartments differ from the prices of fully equipped apartments, which are considered higher. So, the degree of the apartment’s readiness is directly proportional to its price, which rises and falls with its rise and fall.
These were the most important basic factors controlling the price of apartments in Istanbul, and there may be some other factors that are considered minor, but may contribute to determining the price of the apartment.
Reasons for a low apartment price in Istanbul:
There are some cases that lead to a decrease in the price of the apartment, including:
-The seller’s urgency to sell his apartment due to an emergency circumstance or any other reason, such as selling the apartment for the purpose of travel, for example, so he sells it at a price lower than the value it deserves within the real estate market in Istanbul.
These apartments are considered a unique opportunity for those who hurry to get them and take advantage of their lower value than the real price they deserve. This difference represents a profit for the buyer of the apartment.
In some cases, the apartment is under mortgage or seizure and is sold at a public auction as a result of the owner’s failure to pay the installments due, for example, or for any other reason. Therefore, the apartment is sold at a lower price than the real price it deserves in the real estate market.
-Used real estate that has been sold more than once or real estate that has been inhabited for a long time without any repairs and needs maintenance for its various facilities, achieve low prices.
-Negotiating with the seller:
In some cases, the purchase price of the apartment is reduced by negotiation with the seller, which may result in a good price reduction, and this is related to the buyer’s bargaining experience.
These cases may be few, but they can be available, and they bring great profits to those who buy them at a low price and sell them at a higher price later. These opportunities need constant monitoring of the real estate market by the real estate investor.
How to determine the prices of apartments in Istanbul:
The price of the apartment can be determined by adhering to the following steps:
-Comparison between the price of the apartment and the price of the neighboring apartments:
There may be many apartments in the vicinity of the apartment that are similar in specifications, and therefore the prices of these apartments should be close to each other.
-Comparison with apartments sold earlier:
It is necessary to see the progress of the buying and selling process of apartments in the area and to check the prices of the apartments that were sold in the past and whose specifications are close to the specifications of the specific apartment.
-Monitoring the real estate market in Istanbul:
It is recommended to use a real estate company or real estate agent who has sufficient experience and information related to the real estate market in Istanbul in case the buyer does not have sufficient experience and knowledge in order to provide him with the most important information related to the buying and selling process and the percentage of demand for apartments in the region.
If you are planning to buy an apartment in Istanbul or anywhere else, it is very necessary to enter into a bargaining with the seller, which may result in a good price reduction.
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