Investing in Izmir: Turkey's Undervalued Real Estate Gem

Investing in Izmir: Turkey's Undervalued Real Estate Gem

Making a Real Estate Investment in Izmir? A Value Play within Turkey

Why invest in Izmir real estate

  • Izmir is a large, diversified city with a growing economy, not heavily dependent on tourism
  • It offers much better value compared to Istanbul or Antalya
  • Few foreign buyers so far, providing an opportunity for value
  • Well-connected with a new airport and frequent flights to Istanbul

Potential Downsides

  • Earthquake risk, though new buildings follow strict regulations
  • Turkey's economic and geopolitical challenges

The Izmir Housing Market

  • Prices per sq.m. are about 40% lower than Istanbul
  • Cash transactions are common, with some prices indexed to USD

Promising Neighborhoods for Investment

  • Karşıyaka: Pleasant area with higher-income residents
  • Alsancak: Lively center, good for short-term rentals
  • Karatas/Konak: Reasonable prices, good connectivity
  • Bayrakli: Offers sea views at reasonable prices
  • Narlidere and Balcova: Expanding, quiet, premium areas

Example Investment

  • 70 sq.m. apartment in Karatas
  • Purchase price: $130,000 all-in
  • Potential net rental yield: 5%

Who is this right for?

  • Those seeking Turkish real estate investment at better value than Istanbul or Antalya
  • Investors interested in the Turkish Citizenship by Investment program

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