Keith’s Weekly Property News June 22-2021

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Keith’s Weekly Property News June 22-2021

As the TRY pushes new lows, the deal-making environment continues to feel stretched. On the bright side, sellers who are committed to selling, or need to sell, offer up a good opportunity for buyers. Furthermore, some sellers do not keep their eyes as much on the USD, so those eyes of sellers are attractive. In sum, despite the recent increase in prices, 10% this Spring, by my estimation, there remains deep value for USD/Euro/GBP buyers.

Again, it was a fairly transactional week. New clients from Iran, Holland, the US, and Australia, all looking for very different kinds of properties, so that has been interesting.

We moved on several really ultra-budget properties of 500.000TL or less. I had kind of written off that segment of the market, feeling that ownership of those properties was too marginal. I was wrong about that. I think they can be a great opportunity for portfolio building for a certain kind of client. In addition, what alerted me to the opportunity was the sqm price was even in fact cheaper than larger properties in some cases.

Yes, they are a bit more management-intensive in some ways, but I am willing to work with people on these if they also agree to take at least a partially active role in managing the assets. I have some ideas how that could work if anyone is curious.

Heavy rains all week long seemed to add a surreal element to the proceedings, but as I sit on the terrace here this morning, it is all brilliant sunshine. I have not checked tourist numbers in a while, but I have no doubt they are sky-rocketing. I read that Russia has just opened flights to Turkey and 1 million tourists are expected from there alone!!! No doubt the numbers of CBI are also on that trajectory.

To meet demand, we are slowly expanding our search zones, sometimes a street at a time. And we are definitely giving a harder look at some neighbourhoods. Cihangir and Taksim have been moribund for so long, with so few transactions, that we feel now is a good time to test those markets again and find the real sellers at real prices, not the typically inflated Cihangir effect. There will be some deals there and we will find them. About 25% of our clients more or less insists on Cihangir/Taksim, so I suppose listening to that would be prudent I think this increase in the scope of the neighbourhoods can be justified on the below grounds:

1- We do not sacrifice yield much.

2- We find unique properties with desirable characteristics that will make them standouts in those neighbourhoods (a decent view, perhaps a terrace, or as always, just a rock-bottom price)

3- There is some room for appreciation in the coming years.

4- For lifestyle buyers, they satisfy demand for a particular vibe offered in that neighbourhood that they cannot find elsewhere.

As I have mentioned before, renovation costs in TRY have been creeping up, probably 10% in the past few months alone, or certainly since the New Year. That can make buying renovated properties, priced in TRY, more attractive. Perhaps those renovations were done 1, 2 or even 4 years ago when costs in TRY were much lower, so we have opened up completely to this kind of purchase. If we have to come in and clean up a few of the unsightly bits on a renovation, that can be done. More and more, we are reverse-engineering the price and seeing a favourable outcome for those properties. So, as we move forward, we are becoming slightly less dogmatic  ( :  and more open-minded. I think that is probably a wise move, as a good deal is a good deal and none of the neighbourhoods being discussed are even remotely what I would call ’sub-prime’.

We seem to be making headway in Kagithane, are re-connecting with Taksim due to demand and possibly increase in the number of viable options, and have also made inroads in Besiktas. The Asian Side remains a tough sell, but I am certainly open for it, but a little less so Kadikoy’s red-hot prices.

We have finally found a few new-build projects worth endorsing in Zeytinburnu and Kagithane. Amongst the high-rise properties on the secondary market, Divan Bomonti remains the top choice, though offerings are limited.

We did several videos this week: Ladislas from Wandering Investor and Julien from Oseille TV (content in French). I will post those on the group when they come online. They feature a summary of a recent renovation project. Ken, from our group, will also be interviewing me in the near future.

All in all, broadening horizons seems to be the order of the day, as we embrace new opportunities and continue the quest to unearth value wherever it can be found in a handful of core downtown neighbourhoods. It is not a quixotic effort; we are systematically covering as much ground as possible and slowly adapting the game plan, perhaps on the fly, but not at all recklessly.

I will record my speaking part of the zoom session this week, but stop recording during the Q&A for the privacy of group members. Please let me know if that is an issue for anyone. Also, we will be updating the search zone map, very precisely. We will make these available with this + link to zoom recording.

Properties that moved this weeK: 

Numerous, all were quality acquisitions.

Property links distributed during weekly zoom session

Tagged: Istanbul propertybuying property in Istanbulcentral IstanbulIstanbul apartmentsIstanbul buildingsIstanbul investmentIstanbul propertyIstanbul property sale, Istanbul real estateIstanbul renovationsProperty in Istanbul.

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About The Author
keith-boyle

About Us: My Bricks is a unique real estate company in Istanbul. With over a dozen years of experience in downtown Istanbul, Keith has been involved in countless transactions. He tirelessly researches for the best opportunities for his valued clients. In addition, Keith has project managed over 50 renovation/restoration projects (see Keith in action on YouTube: https://www.youtube.com/watch?v=yLaLIjo9X-A&pbjreload=101). We source all kinds of properties, from budget properties up to luxury villas on the Bosporus. We give personal service to our clients; often doing zoom and WhatsApp sessions 1-1 and also webinars where clients can benefit from the wisdom of Keith’s other clients. In these webinars issues such as taxes, legal issues, design and renovation and identification of property opportunities are addressed. These sessions are typically run on Saturdays and Sundays. Come and join us; just contact Keith for details on: WhatsApp/telegram at +90 531 582 3876). Our living and breathing passion is real estate in the downtown area. We look forward to virtual sessions where you walk side by side with us along the streets or in real life when you arrive in Istanbul. We are fully equipped to help you with any logistic matters you may require, from obtaining citizenship through investment to managing your assets professionally here in Istanbul. At this point in time, the agency is transforming and we have investment coming in. It is an exciting time to purchase in Istanbul. I look forward to doing the ground-work for you and launching you on your way to a profitable and enjoyable investment. Kind regards, Keith Boyle

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