Offices for Sale in Istanbul

How are the Average Prices for Offices in Istanbul?

Prices for offices can differ from 1000 USD/m2 to 10000 USD/m2. The reason for this wide range is mainly the location of the offices in the first place. Offices located in the city center are more expensive in comparison with those located in the suburbs. The age of the office and the quality of the construction also play their role in defining the prices, but the location is considered to be the most important factor among others. Prices for offices in the newly developing business centers such as Basin Ekspres area are quite reasonable and have a very bright future in terms of value appreciation.

What are the Differences of Buying an Office Compared to an Apartment in Istanbul?

• The most important difference is that apartments are considered to be residential properties, but offices are commercial properties.
• Investing in offices as commercial properties require a higher initial coast, but it provides way higher returns compared to renting apartments.
• Renting offices is considered to be a more stable investment compared to renting apartments, offices have longer rental contracts as they are related to businesses and companies not individuals. These businesses and companies are way less likely to be behind their rent.
• A special tax 25% of the yearly rent called (Stopaj) is being paid by the tenant to the government. This amount is being deducted when calculating the investor’s income tax, thus almost no income tax will be paid by the investor when renting an office.
• Offices gain value appreciation faster than residential apartments due to higher demand.

Where Can You Find Offices for Sale in Istanbul?

Offices can be found nearly everywhere around Istanbul, but they are concentrated in Istanbul’s business centers which are mainly in the center of the city where old business districts exist and new developing areas of the city where new real estate developments take place.

Center of the City

Business centers located in central areas such as Levent and Maslak. Offices located in these areas are considered to be the most expensive offices due to their prime location and high construction quality. For years, Levent has been in the main commercial center of Istanbul where Isbank Towers, Sabanci Holding Towers, Garanti Bank and Yapi Kredi Bank towers had been standing. Maslak became also afterwards for the last 10 years a major business district as many commercial towers were built in the region and many companies shifted their business to this area.

New Developing Areas

Business centers in the suburb developing areas such as Basin Ekspres. Offices located in these areas are cheaper compared to the city center and have higher potentials for value appreciation. Properties in the suburbs gain value appreciation rapidly compared to those located in the city center. Atasehir will also become a big commercial business center in Istanbul in future years as very big construction projects are being built in that area with the support of the government. Several banks in Turkey will move their headquarters to Atasehir once the area is ready.

How Can You Buy the Most Profitable Office in Istanbul?

1. Try to specify the reason for buying an office. If this purchase is for personal business, specify the suitable sizes for the required office. If it is pure investment try to specify the available budget. This will help you avoiding limitless alternatives all around the city, and focusing on suitable options.
2. Even if you can buy offices in the city center, try to go for developing areas, as they will grant you higher value appreciation within a shorter period.
3. Prioritize offices located in compounds, due to their competitive advantages and they are easier to be rented out.
4. Try to go for offices with local managing partners or, offices that are already rented. This will save you the time and effort related to managing and renting these offices.
5. Always research the developers, their construction history, reputation and the quality of their constructions.
6. Always check the attached fees, such as management fees, maintenance fees, and title deed fees. You need to put these fees into account to avoid any surprises in the future.