Is It Better to Buy One Expensive Property or Multiple Affordable Units in Istanbul?
Istanbul has a diverse property market from which you can invest, from high-end buyers to budget buyers. If you’re interested in investing in real estate, one of the main questions is:
1. Buying One Expensive Property in Istanbul
And with blockchain, you have all those pros and cons of traditional options depending on rental yield, capital appreciation, resale potential, and market risks. This guide compares both strategies to determine which investment approach is best for your goals.
1.1 Advantages of Buying One Expensive Property
✔ Prime Location & Prestige
- High-net-worth buyers in particular are drawn to luxury properties in Beşiktaş, Nişantaşı and Sarıyer.
- Premium locations hold their value better during markets’ downturns.
✔ Strong Capital Appreciation
- Homes in premium neighborhoods appreciate more quickly.
- Homes with views of the Bosphorus and luxury residences have a high resale value.
✔ Easier to Manage
- You have only one tenant or property to manage.
- Fewer administrative resources than standalone units.
✔ Turkish Citizenship by Investment
- Turkey citizenship by investment – $400,000+ property purchase.
1.2 Risks of Buying One Expensive Property
❌ High Vacancy Risk
- You lose rental income if the property stays empty.”
- Luxury rentals have a smaller pool of tenants than mid-range units.
✋ Low Rental Yields Compared To Mid-Range Apartments
- Typically, luxury apartments have lower rental yields (3-5%)
- In high demand areas cheap flats can return 6-8% per annum.
❌ Resale Liquidity Issues
- It takes longer to sell in the highest price points, where there are fewer buyers with deep enough pockets.
2. Buying Multiple Affordable Units in Istanbul
A counter investment strategy is purchasing several middle- or low-cost apartments in up-and-coming neighborhoods.
2.1 Advantages of Buying Multiple Affordable Properties
✔ Higher Rental Yield
- The yields on apartment in the mid-range, such as in Beylikdüzü, Küçükçekmece or Başakşehir bring 6-8% rental yield.
- The more affordable properties tend to attract more tenants.
✔ Lower Vacancy Risk
- And if you have several units, vacancy of one apartment doesn’t kill all revenue.
- So easier to rent than luxury properties.
✔ Easier Resale Market
- Mid-range apartments attract both local purchasers and investors.
- Houses in developing areas appreciate consistently.
✔ Diversification of Risk
- Owning many properties lowers the financial risk if one does not perform well.
2.2 Risks of Buying Multiple Affordable Properties
❌ Higher Management Costs
- More investment properties also means more maintenance, repairs, and tenant issues.
- While hiring a property management company can lighten the load, it also brings added expenses.
❌ Slower Capital Appreciation
- Mid-range properties appreciate at a slower rate than prime-location properties.
❌ More Paperwork and Administrative Work
- Each property requires separate legal procedures, title deed registration, and tax payments.
3. Comparing Investment Strategies: Which One is Better?
3. Comparing Investment Strategies: Which One is Better?
| Factor | One Expensive Property | Multiple Affordable Properties |
|---|---|---|
| Rental Yield | 3-5% (Luxury properties) | 6-8% (Mid-range apartments) |
| Capital Appreciation | High in prime locations | Steady in growing districts |
| Vacancy Risk | High (luxury units have fewer tenants) | Low (multiple units = stable income) |
| Resale Liquidity | Harder to sell | Easier to sell |
| Management Effort | Low (one unit) | High (multiple tenants, maintenance) |
| Risk Diversification | Low (all capital in one asset) | High (diversified assets) |
| Turkish Citizenship | Yes, if property is $400,000+ | Only if total investment is $400,000+ |
✅ Best for Long-Term Capital Growth: One expensive property in a prime location
✅ Best for Rental Income & Cash Flow: Multiple mid-range apartments
4. Who Should Buy One Expensive Property?
✔ Investors favouring long-term capital growth over rental yield.
✔ Buyers seeking a prestigious residence in central Istanbul.
✔ Those who prefer not to be an administrator of multiple properties.
✔ Investors applying for a Turkish citizenship with a single acquisition.
Recommended Areas:
- Fashion: Beşiktaş, Nişantaşı, and Sarıyer (Luxury districts with high appreciation).
- Levent & Maslak (Premium business districts)
5. Who Should Buy Multiple Affordable Units?
✔ Landlords focused on rental return and cash flow.
✔ Investors interested in spreading risk over multiple properties.
✔ IS BUYERS LOOKING FOR MID RANGE TENANTS AND LONG STAY RENTAL DEMAND.
Recommended Areas:
- BBeylikdüzü & Esenyurt (cheap and high rental demand)
- Küçükçekmece & Başakşehir (Rapid infrastructure development and metro line expansion).
- Ataşehir (Business District − strong rental potential)
6. Final Thoughts: Which Investment Strategy is Best?
Which is best for you will depend on your investing priorities:
✔ Invest in a single expensive property in a better location if your focus is on long-term capital appreciation and minimal hassle.
✔ If you are looking for high rental yields, risk diversification and multiple streams of income, purchase several mid-range properties.
There are pros and cons to both strategies, and so be sure to do your research on the market, compare locations, and team up with a trusted real estate agent before deciding.