The real estate market has been witnessing in recent times many negative changes according to the surrounding changes in the country’s economic conditions and their consequences…

So in this article, we will review some of the shortcomings and declines that concern investors and buyers in this field during last years …

What are Gross and Net Square Meters?

In the past, 1+1 apartments were not preferred so much due to thoughts that it would not meet the demand of a family. The most popular apartment types were 2+1 and 3+1. Also, 4+1 apartments were not common either. Checking out the houses built in those years between 1970-2000, almost all of them fits into these statements. Buyers usually set prices based on number of rooms regardless of all other criteria like square meters. Either they did not know what the gross square meters and net square meters were, or they did not care of. As market prices began to be calculated based on the apartments’ square meters, the gap between gross and net square meters increased every year. Increasing land and construction costs in Istanbul’s real estate market, unfair competition and the lack of a serious legal regulation on this field cause the gap between gross and net square meters to increase. Needless to say that problems arise when customers don’t make their own gross and net calculations. Many companies have tried to sell apartments over a net square meter for years. Moreover, the net accounts were very straight. According to this calculation, net area of an apartment consists of the living areas, balconies and terraces. After that, the companies started to make sales based on gross square meters which easily could be manipulated. They blow up the gross square meters over and over to increase the price and it creates an unfair competition, even a fraud against customers. Therefore, that creates a need of a common language on gross and net square meters. The gross and net square meters should not change according to the company, the location, or the project in different locations of the same company in order to prevent unfair competition in the sector and ease in expertise work and doing mortgage.

we provide our customers with full information about gross and net square meters of all apartments.

The gross and net of an apartment must be divided into 4 in itself.

1) External gross: The share that an apartment takes from the total construction site. The share of total construction area including parking lot, warehouse and social facilities is added.
2) Internal gross: The share that allocated from a floor. The share allocated from elevator, stair, ventilation gaps and corridors.
3) External net: The sum of all the exterior walls of the apartment. Balconies and terraces are included.
4) Internal net: The sum of all livable areas of the apartment. Bathrooms, kitchens, toilets, balconies and terraces are included.

Similar measures like above can be improved. It is important to evaluate all the projects and apartments knowing the criteria and calculations. The customer should always know what s/he is about to buy, s/he should never leave it to the sales representatives conscious or mercy.

Tagged: Istanbul property, buying property in Istanbul, central Istanbul, Istanbul apartments, Istanbul buildings, Istanbul investment, Istanbul property, Istanbul property sale, Istanbul real estate, Istanbul renovations, Property in Istanbul.

Developers' boasting of high rental income on projects

You must research the rental incomes of comparable properties in the area and also consult with an independent real estate professional who would be able to tell you in seconds how much a prospective property will generate in income. You may also use that agent later on in the process of searching for new tenants, so starting off a relationship early is not a bad idea.
Tagged: Istanbul property, buying property in Istanbul, central Istanbul, Istanbul apartments, Istanbul buildings, Istanbul investment, Istanbul property, Istanbul property sale, Istanbul real estate, Istanbul renovations, Property in Istanbul.

The access to mortgages for foreign buyers is limited

Many find the high rates in Turkey unattractive. This is a tricky one in the sense that if you borrow in TL and the TL slides, your debt can actually be much lower in currency (a kind of reverse carry trade). Still, it seems the best way to purchase property in Turkey for foreigners is to pay cash (possibly even reverse mortgaging an already-owned property). Why property owners in London are not arriving on the shores of Istanbul to snap up property is beyond me. Of course, many do, but I would expect some areas of Istanbul to be Noting Hill. Paying cash also increases your bargaining power, no doubt about it. If viable mortgage products are made available to foreign buyers and some loosening of paperwork requirements are made - especially for buyers putting in 50% cash on purchases - there could be a veritable explosion of new wave of interest from just about every corner of the globe. Turkish property affordability and ease of purchase would become legendary, as the door would be well and truly open. Why banks will not give 50% LTV has always been an impenetrable mystery.

Tagged: Istanbul property, buying property in Istanbul, central Istanbul, Istanbul apartments, Istanbul buildings, Istanbul investment, Istanbul property, Istanbul property sale, Istanbul real estate, Istanbul renovations, Property in Istanbul.

Unrealistic expectations

Can anyone really believe that they can generate 10% annual income on a luxury property? Yields in Monaco are about 1%, London 2.5% at best, Paris about the same, and Pyongyang, well, er, a published 18% (according to Dennis Rodman, perhaps!). Yields in Istanbul run from about 4% for luxury properties to 7-8% for standard investment properties. If you get 10%, pat yourself on the back for a job very well done.
Tagged: Istanbul property, buying property in Istanbul, central Istanbul, Istanbul apartments, Istanbul buildings, Istanbul investment, Istanbul property, Istanbul property sale, Istanbul real estate, Istanbul renovations, Property in Istanbul.

Lack of research/understanding of market by buyers

Many foreign buyers come spectacularly unprepared for purchasing property in Turkey. Telling an agent the size of the property desired as well as a specific location are a minimum. Just saying I want something in central Istanbul is not really helpful. Think of Istanbul as a country in itself. You would not walk into a realtor in Toronto saying you are looking for a property in Central Canada, though it might be a useful ice-breaker and create some mirth.
Tagged: Istanbul property, buying property in Istanbul, central Istanbul, Istanbul apartments, Istanbul buildings, Istanbul investment, Istanbul property, Istanbul property sale, Istanbul real estate, Istanbul renovations, Property in Istanbul.

Lack of communication on all sides; agents, buyers, sellers

This seems like a non-starter, but it is vital. Many times deals break down from things as simple as one side not receiving key information in their native tongue. If you do not speak Turkish, at a minimum, you should have a Turkish speaker who is also fluent in your native tongue, whatever that may be. Buying a property is a big deal and there are many small, but essential details that can get lost in translation, so to speak. If you are using a lawyer, use one whose language skills are impeccable. The lawyer acts as an impartial player in these transactions and it is his/her job to relay information impartially and also to defend your interests exclusively. They will be able to advise you on all technical aspects of a transaction, but may not offer insight on the value of a property, etc, as that is really not their expertise.
If the agent or developer point of contact only speaks Turkish, you may be in for a rough road. In a city with millions of highly educated, young and entrepreneurial people, finding proper assistance is not very hard and you should insist on it.
Tagged: Istanbul property, buying property in Istanbul, central Istanbul, Istanbul apartments, Istanbul buildings, Istanbul investment, Istanbul property, Istanbul property sale, Istanbul real estate, Istanbul renovations, Property in Istanbul.

About The Author

Keith

My Bricks Istanbul is solely involved in the business of international real estate. My Bricks have over 13 years experience in negotiation, purchase, renovation, development of Istanbul property. My Bricks’s investment approach is opportunity-led as opposed to investment- led. When the property is fully researched and well sourced, only then will we suggest to clients.

Istanbul Real Estate Inefficiencies Or Drags