Rent prices is increasing rapidly compared to the increase happening in house sale prices.
The average income that is generated over the years in turkey was estimated to be 20 years but now with the increase of rent prices the payback is estimated to be 13 years in some regions
Even though high rental prices have become a burden on the tenant This has been an advantage for people who want to invest or start investing in real estate. The amortization period began to shorten starting a Year ago when rental prices started to increase.
The statistics has shown that real estate has become a preferred reinvestment as revenue time has decreased. The Turkish Statistical Institute (TUIK) shows that the months of August and September had the highest sales despite the low loan rates
How is the real estate payback period calculated?
The period obtained by dividing the total sale price of the house by the rental price is known as the depreciation period. As an example, if a 500,000TL worth house is rented out for 2000TL per month the payback period is 20.8 years. The higher the return on investment, the longer the amortization period; the shorter it is, the lower the return on investment. For many different reasons the real estate payback in Turkey period may vary because of changing of dynamics, transportation, parks, and services.
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Districts in Istanbul that with faster real estate payback.
Esenyurt, Güngören, and Beyoğlu are from the regions in Istanbul that have seen a huge payback period difference a decrease in the years of the payback as rental prices have increased drastically
It’s a great time for investors to start investing and rethinking about investing in turkey. Turkey has always been a great place for investors to invest in as its geographical location is very unique and its rich history combined with the its modernity which everyone feels related too.