Best areas of Istanbul to invest in real estate

One of the historic districts of Istanbul, Zeytinburnu dates back to the 15th century with the capture of Constantinople by the Ottomans and the fall of the Byzantine Empire. The district extends to the left of the high walls of the former Constantinople. You can find here the fortress gates and the Ignatius passage. After the capture of the city in 1453 by the Ottoman conquerors, the lands outside the fortress wall were settled by Christians, followers of the “Priests of Jerusalem” sect, who left Constantinople. Through their efforts, huge gardens of olive and fruit trees were planted in this place. Hence the name of the region from the words “Zeytin” (in Turkish “olive”) and “burun” (in Turkish “cape”), that is, the cape of olive trees.

Then the Turks began to settle here. From the beginning of the 19th century, the leather industry began to develop in Zeytinburnu, and later the textile industry. Industrial development led to the rapid growth of the city at the expense of the working class. On September 1, 1957, Zeytinburnu became a separate district of Istanbul. At the moment, 90% of all tanneries in Istanbul are concentrated in this district. Modern Zeytinburnu is a real Mecca of trade, a kingdom of shopping, and a center of attraction for middle-income shoppers. Furs, homeware, and jeans are particularly well represented. It is in this region that the major share of Turkish textile and leather production is concentrated, which ensures low prices. However, one should not think that only trade is concentrated in Zeytinburnu. The district is ready to offer guests a range of great restaurants, lovely cafes, and attractions. For example, the Wall of Constantinople, the Museum of History, the Orthodox Church, mausoleums, and much more. There are a lot of picturesque fountains in the area, some of which celebrated their 100th anniversary. Since the early 1990s, there has been a process of moving “dirty” industries outside the city perimeter.

The Istanbul Metropolitan Municipality is carrying out a state renovation program aimed at developing the area, building modern housing, leisure facilities, transport, and social infrastructure. The population of the district at the beginning of 2021 is about 300 000 inhabitants and continues to grow. Zeytinburnu is located in the European part of Istanbul, close to the Bosphorus and the historical center of Istanbul – Fatih district (distance from Fatih is 10 km or 20 minutes’ drive). The district is one of the most promising in terms of living standards and real estate investment. Over the past few years, a large number of programs have been implemented to renovate the housing stock (Urban renewal program) of the district – step by step, entire blocks of old housing are being demolished, replaced by modern residential complexes like Topkapi Merkez Evleri, Istanbul Veliefendi, and Sahilpark Evleri, which added a total of 2,017 new apartments and 103 offices. The renovation of this area is mainly carried out by Kiptash, a company founded and owned by the Istanbul Metropolitan Municipality. In addition to the construction of residential buildings, Kiptash`s scope of activity includes the construction and reconstruction of roads, natural gas and water lines, commercial areas and parking lots, medical and educational institutions, and much more. The construction of transport interchanges, tunnels for high-speed roads, designed to relieve existing roads, is progressing successfully. Among those under construction to date, two large projects for the construction of tunnels can be noted: Merter – Kazlycheshme, 4.2 km, and Davutpasha – Samatya, 6.73 km. It is also worth noting the commissioning of a new Habibler – Edirnekapi tram line with a length of 15.3 km, which connected Zeytinburnu with such districts as Fatih, Bayrampasha, Eyupsultan, Gaziosmanpasha, and Sultangazi. This high-speed tram is produced locally in cooperation with such names as Bombardier, Siemens Mobility, and Hyundai Rotem. New generation multilevel parking lots for 2,760 cars have already been built and are successfully operating. 4 parking complexes for electric vehicles are currently under construction.

Zeytinburnu is renowned for its new Green Clusters, which allow living spaces to be located between large parks and multi-functional sports grounds. The spread in real estate prices is quite large: from $1 000 per square meter in old buildings to North of $4 000 in new exclusive residential complexes. The projected annual increase in the value of the secondary residential real estate is expected to be in the range of 3 to 5%. When investing in buildings under construction, the annual yield can reach more than 10%. There are projects on the market with installments from the developer, including installments exceeding the construction period. A well-chosen investment object can bring an investor a return that exceeds the market average.

 

 

By Zainudin Makhachev

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