The tide has turned in housing investment: Investors are now looking at these cities

Calculations influencing investment decisions in the housing market are changing once again. As rents continue to rise while sales prices do not increase at the same pace, the time it takes for a property to pay for itself through rental income has decreased. This picture has made housing a more attractive option again, especially for investors targeting regular rental income.

According to Endeksa data, the amortization period, which was at an average of 14 years across Turkey at the beginning of the year, has recently fallen to 13 years. The amortization period is among the key indicators showing how many years it takes for a property's purchase price to be covered by rental income.

According to industry representatives, two factors stand out in this decline: sales prices weakening in real terms in many cities and the demand for rental housing remaining strong. The limited supply of rental properties, especially in major cities, is considered one of the primary factors supporting rental income.

ANKARA STANDS OUT WITH ITS RETURN PERIOD

According to a report by Türkiye Gazetesi, Ankara has emerged as the major city with the shortest amortization period. It is stated that the time it takes for a property in the capital to pay for itself through rental income has dropped to an average of 12 years. The fact that sales prices in Ankara remain at more accessible levels compared to Istanbul and the strong increase in rents are cited as factors accelerating the return on investment.

Ankara was followed by Tekirdağ and Şanlıurfa. It was reported that the amortization period is calculated at approximately 14 years in Istanbul, Bursa, Adana, and Sakarya. In contrast, high sales prices in tourism-oriented cities extend the return period. It is stated that it takes 17 to 19 years for a housing investment to amortize itself in Muğla, Antalya, and Aydın.

This outlook shows that investors have begun to act not only with the expectation of value appreciation but also with the potential for regular rental income. In the sector, it is assessed that Anatolian cities with strong rental potential may gain more weight in investment preferences in the coming period.

RENT MULTIPLIER IN ISTANBUL DROPPED TO 199 MONTHS

A notable change is also taking place in Istanbul regarding investment calculations. It is stated that the rent multiplier in the city has fallen below 200 months to 199 months. This decline is interpreted as housing prices remaining under pressure in real terms, while rental incomes continue to rise.

According to experts, demand for rental housing remains vibrant in central districts of Istanbul and areas where transportation investments are concentrated. For this reason, it is expected that regions providing sustainable rental income will come to the fore rather than short-term buy-sell gains.

Real estate sector representatives state that while sales prices have lagged behind inflation over the past year, the increase in rents has created a stronger income balance for investors. Therefore, it is stated that the main theme of the new period in the market is regular and sustainable rental income rather than rapid value appreciation.

If the decline in the amortization period continues, it is assessed that investment interest may increase, especially in regions where rental demand is high. However, for experts, local dynamics such as city, district, transportation links, and rental supply continue to be decisive in investment decisions.

News Source: 12punto