The core of the investment is a 68 m² one‑bedroom apartment in the central Osman Bay district of Istanbul, just two minutes from a metro station. The buyer measured the net usable area with a laser meter to confirm the seller’s claim of 68 m² (the listing advertised 80 m² net and 100 m² gross).
Purchase price and acquisition costs
- Net price: US $84,000 (≈ $1,235 per m²).
- Additional fees: buyer’s agent commission, title registration, stamp duty, etc., bringing total out‑of‑pocket cost to ≈ US $88,000.
Renovation scope and budget
The renovation will be a full gut‑strip, including:
- New double‑glazed aluminium windows and sliding doors (high‑end Vinsa brand).
- Creation of a walk‑in closet, expanded bathroom with large shower, and a covered balcony.
- Installation of premium Turkish handmade tiles and an urban‑style interior to match the commercial neighbourhood.
Cost estimate: US $400 per m², i.e., ≈ US $27,200 for the 68 m² unit. This is higher than the US $300–350 per m² typical a year earlier, reflecting:
- Use of premium materials.
- Rising USD‑denominated prices despite the Turkish lira’s depreciation, because many manufacturers export and price in USD.
Expected rental performance
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Long‑term lease: projected rent US $750 / month once fully renovated and furnished.
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Assumptions: 95 % occupancy, 30 % deduction for property‑management fees and local income tax.
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Net yield: ≈ 6 % per annum after all expenses.
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Airbnb short‑term rental (optional): potential increase of 30–40 % over long‑term rent, leading to a net yield of 8–8.5 % after management fees, platform fees, and taxes.
Practical considerations for investors
- Verify net area with an independent measurement before negotiating price.
- Budget for premium finishes in high‑traffic, central districts to avoid devaluing the asset.
- Factor in material cost volatility: even with a weaker lira, imported‑or export‑oriented suppliers may keep USD prices high.
- Target tenant profile: foreign visitors or locals earning in USD who prefer a blend of familiar western design and Turkish touches.
- Liquidity: Istanbul’s rental market is described as “extremely liquid and vibrant,” suggesting relatively quick tenant placement after renovation.
Overall, the case illustrates how a sub‑$1,300 / m² purchase price in a prime Istanbul location, combined with a high‑spec renovation, can generate modest but reliable cash flow, especially when rental income is indexed to USD. Investors should weigh the higher renovation outlay against the potential for stable, dollar‑linked returns in a market where currency fluctuations can affect both acquisition and refurbishment costs.
