Price Increase Rates and Market Values
Beşiktaş, one of Istanbul’s most valuable housing markets, has seen extraordinary price increases over the past five years. Particularly after 2020, economic fluctuations and high inflation doubled housing prices. For instance, a property listed for 650,000 TL in Beşiktaş Abbasağa in 2020 reached 3,500,000 TL by 2023, reflecting an approximately 438% increase .
This example aligns with the general upward trend in the region. According to Endeksa data, as of January 2025, the average housing price per square meter in Beşiktaş has reached 123,198 ₺ .
For comparison, this figure was in the range of 11,000–15,000 TL in 2018, demonstrating that prices have increased several-fold over the five-year period. Beşiktaş remains the district with the highest price per square meter in Turkey.
Rental increases have also been similarly high. The district is among the most expensive rental housing markets in Istanbul. Average rents surged nearly tenfold from 2019 to 2023, showing a 952% increase .
By mid-2023, the average monthly rent in Beşiktaş was calculated at around 59,000 TL , placing it second only to Sarıyer.
Such a significant rise in prices makes the area highly attractive for long-term investment.
Investment Trends and Return Periods
The Beşiktaş housing market continues to attract investors despite significant price increases. Due to its central location and prestige, the district is considered a “safe haven” for both local and foreign investors.
However, due to rapid price appreciation, the return period (amortization) has lengthened. For example, a few years ago, the average property price in the area was 3.85 million TL, with an average rent of 14,000 TL, resulting in an amortization period of approximately 26 years.
Today, with prices much higher, the return period based on rental income can exceed 30 years. This situation leads investors to focus more on capital appreciation rather than rental income. In international comparisons, Beşiktaş remains the most expensive district in Istanbul, yet its price per square meter is still lower than major global cities like London or New York, making it attractive to international investors.
Among investment trends, branded housing projects and the luxury segment stand out. New residential projects in the area continue to attract high-income groups and foreign buyers.
On the other hand, given the astronomical prices, some investors now find rental income to be a more reasonable source of profit. With high rental yields, property investment in Beşiktaş remains a lucrative option (luxury apartments can generate monthly rental income of 50,000-60,000 TL). However, since rental yields remain relatively low at 3-4% annually, investors primarily see long-term capital appreciation as the main source of profit.
Supply and Demand Balance
Beşiktaş has limited housing supply, with most properties coming from the secondary market. The district is fully developed, and new land availability is extremely restricted. As a result, while demand continues to grow, the increase in housing supply remains low. Despite rising prices, sales volumes have fluctuated in recent years.
Throughout 2023, high interest rates and macroeconomic uncertainties caused a slowdown in sales, but a recovery emerged by mid-2024. In July 2024, 210 properties were sold in Beşiktaş, marking a 32% increase compared to the same month the previous year (July 2023: 159 sales).
This growth indicates that demand is picking up again after a prolonged stagnation. At the time, Beşiktaş was among the few districts in Istanbul that experienced an increase in property sales.
The revival in demand was driven by buyers rushing to purchase properties before the anticipated year-end interest rate cuts, along with the perception that prices had hit their lowest point.
On the supply side, new urban transformation projects have begun to add a limited number of new properties to the market. However, since these new units primarily come from the renovation of old buildings, they fall short of fully meeting demand.
Demand for older buildings has also surged recently, as buyers increasingly prefer aging properties with renovation potential as an investment opportunity.
While this may partially help balance supply and demand in the future, overall, demand in Beşiktaş still outpaces supply. With limited availability of high-quality, newly built homes, there is strong demand for new projects and urban renewal developments. This imbalance prevents prices from decreasing, keeping them at high levels.
New Projects and Developments in the Area
In the last five years, a small but notable number of new projects have been launched in Beşiktaş. These are generally luxury residences and office-type developments carried out under urban transformation or demolition-reconstruction initiatives.
One of the largest-scale developments in Beşiktaş is the Karanfilköy Urban Transformation Project , executed by KİPTAŞ, a subsidiary of the municipality. Through the transformation of the shanty areas in Karanfilköy, 1,361 residential units and 143 commercial units are being constructed.
With a total of 1,504 independent units , this project will create the largest housing supply in Beşiktaş in recent years. Upon completion, it is expected to influence the demographics and market dynamics of the region.
Among other noteworthy investments in the area, the restoration of historic buildings along the Bosphorus coastline for conversion into residential or hotel functions can also be mentioned. For instance, developments such as the renovation of old mansions in Arnavutköy and Bebek into ultra-luxury residences have further strengthened the upper segment of the Beşiktaş housing market. In general, while new project opportunities in Beşiktaş are limited, the market remains vibrant through the transformation of the existing building stock and a limited number of prestigious projects.
