When it comes to investing in real estate in Istanbul, investors have two main options that they need to consider carefully: rent or sell. This choice can be an important strategic decision, as it depends on many financial and personal factors. In this article we will highlight these two approaches and discuss the advantages and disadvantages of each to help you make the optimal decision based on your individual goals and circumstances.

Istanbul real estate market 2024

Before delving into the rent vs. sell debate, it is necessary to understand the current real estate market in Istanbul. The city has witnessed steady growth in property prices and high demand for both residential and commercial units. Factors such as urban development projects, the city's strategic location, and Turkey's economic stability have contributed to the market's attractiveness.

Istanbul's real estate market is one of the largest and most vibrant real estate markets in the world. This wonderful city combines cultural, economic and geographical attractiveness to provide exceptional investment opportunities.

Expectations indicate continued high demand for real estate in Istanbul, and this includes residential, commercial and hotel properties. The expected increase in population and tourism sector activity are contributing to this growth. Achieving economic stability and sustainable urban development, Istanbul has turned into an attractive investment destination, and these trends are expected to continue in 2024.

Renting real estate in Istanbul

When you are thinking about investing in real estate through rent in Istanbul, there are some advantages that you should take into consideration:

A steady and regular income stream

One of the primary advantages of renting property in Istanbul is the opportunity to earn a steady income. The city's growing population and the growing number of foreigners in Turkey have created a strong and active rental market, where property owners can benefit from regular rental income, which can help cover real estate expenses and provide a source of income for them.

Flexibility

Leasing provides flexibility in terms of the duration of the lease, as property owners can choose short-term leases to achieve flexibility in case they want to use the property themselves or sell it in the future. This includes tourist leasing and renting furnished apartments. This option may be particularly attractive to those who anticipate market volatility.

Property management services

Many property management companies in Istanbul can handle the day-to-day tasks of property maintenance, tenant management, and financial management. This option can be particularly attractive to investors who do not have enough time to manage their properties.

One of the services that Luxury Signature provides to its clients is the management and supervision of residential, commercial or investment properties in general, including repairs, ongoing maintenance, security and maintaining properties in good condition, and follow-up and renewal of contracts.

Property management service also includes the operation and use of these real estate, such as renting and reselling them, and this is very similar to the role of management in any business.

We assist you in fulfilling your desires and achieving your investment goals from the property, providing detailed rental records while ensuring compliance with the lease terms, communicating with tenants periodically, fulfilling legal obligations, and operating the properties permanently to achieve the maximum benefit for the property owner.

Tax advantages

In some cases, renting can provide tax advantages, as properties owners can often deduct property-related expenses from their taxable income, reducing their overall tax liability.

Selling real estate in Istanbul

Capital increase

Selling your property in Istanbul can result in a significant capital appreciation. Over the years, real estate prices in Istanbul have shown a steady upward trend, as investors who purchase properties with the intention of selling them later can benefit from the potential profit.

Low ongoing expenses

While renting real estate requires ongoing expenses, such as maintenance and insurance, selling the property can reduce these ongoing financial obligations, as once ownership of the property changes, the new owner is responsible for these expenses.

Asset liquidation

Selling the property provides an opportunity to liquidate assets and obtain a large sum of money. This can be beneficial for investors who want to reinvest in other opportunities or need access to capital for personal or business purposes.

No tenant hassles

Dealing with tenants and the issues associated with this, such as late payments, property damage, or eviction, can be stressful for some. Selling the property eliminates this tenant-related hassle.

Which is more profitable, renting or selling property in Istanbul?

The choice between renting and selling should depend on your long-term financial goals, your tolerance for risk, and your assessment of the current real estate market conditions in Istanbul. Whether you decide to become a landlord or take the opportunity to sell, Istanbul's diverse and vibrant real estate market remains an attractive option for investors seeking to capitalize on the city's unique blend of history and modernity. Renting is often preferred for those looking for fixed income, while selling may be preferred for investors looking for capital appreciation and increased financial liquidity. It is important to consider your ability to manage real estate when making this decision. In addition, consulting with a local real estate expert can provide valuable insights into the current state of the Istanbul market and the potential for renting and selling properties.