Istanbul – In a month marked by significant changes, Istanbul’s real estate market is witnessing a flurry of activity driven by reduced mortgage rates and ambitious urban transformation projects.
Recently, the city has observed a striking 10-15% increase in housing prices as financing becomes more accessible. Following a period of high deposit interest rates, which dampened the housing market, banks have begun to lower mortgage rates. As a result, housing sales surged to 134,155 in August 2024, reflecting a 9.9% increase compared to the same month last year. This uptick in sales marks the peak for the year, indicating a renewed interest in property investment.
The dynamics of the market are underscored by anecdotal evidence from homeowners adjusting their asking prices. One seller raised the price of their home from 6.5 million to 7.2 million lira after noticing increased inquiries following the banks’ rate cuts. Another owner reported a price increase from 3.999 million to 4.299 million lira, driven by market momentum and advice from real estate agents who noted the uptick in buyer interest.
KENT Etiler: A New Urban Transformation Project
In tandem with these price increases, a significant urban transformation project is underway in Etiler. The KENT Etiler project, spearheaded by MESA Holding in collaboration with ASL and KİPTAŞ, involves the transformation of approximately 524 buildings with a substantial investment of 750 million dollars. The project, which will offer a variety of apartment types ranging from 1+1 to 6+1, is expected to significantly elevate the area’s commercial value, estimated at around 2 billion dollars. MESA Holding’s CEO, Mert Boysanoğlu, emphasized that the project aims to create a model of urban transformation that aligns with the city’s infrastructure and aesthetic.
The initiative includes a commitment to ensuring that property rights are maintained for existing residents, with Boysanoğlu confirming that landowners would receive their new properties without incurring debt. The project’s design incorporates elements that reflect the neighborhood’s character, providing a unique blend of modern living while respecting the historical context.
Luxury Listings: Record Prices in Sarıyer
Meanwhile, in the upscale Sarıyer district, a luxury yalı (waterfront mansion) has been listed for an astonishing 625 million lira (approximately 18.3 million dollars). This four-story property spans 900 square meters on a 550-square-meter plot and features a stunning view of the Bosphorus, a swimming pool, and ample living space, including 11 rooms and two salons. Notably, the yalı is not classified as a historical artifact, allowing for its sale at this record price.
Market Outlook For Q4 2024
As Istanbul’s real estate landscape continues to evolve, the combination of reduced mortgage rates, urban redevelopment projects, and high-value listings illustrates a market poised for both growth and opportunity. Experts suggest that the trend of increased housing prices is likely to persist, driven by ongoing demand and limited inventory.
