Friday, January 18, 2013

Rixos is Now Offering Apartments For Rent in Istanbul

Rixos, the leading hotel group of Turkey, is slowly becoming a major player in the short term apartment rental industry in Istanbul. The group that takes pride in providing its guests with personalized and hi-end accommodation services now offer a short term luxury apartment for rent in Istanbul and one project is set to be opened in Tblisi, Georgia.

Rixos Bomonty Residences is located in Bomonti part of Sisli which also happens to be the rising star of the downtown Istanbul. The area is also home to the Ruffles group apartments, the Trump Tower and many other hi end residences and is only a few minutes drive to the nightlife and cultural centers of the city.

A minimum period of 30 days of accommodation is expected from the guests that would like to stay in the apartments and with the increasing number of international guests coming to Istanbul for many different reasons, these residences provide a viable alternative. Rixos Bomonty Residences offers a modern life style with its 296 tastefully designed residences, both indoor and outdoor swimming pools, a SPA and sports facilities such as tennis and basketball courts and a fitness center.

Guests looking for short to mid term furnished apartments for rent in Istanbul should check out Bomonty Residences as it is currently one of the most ideal alternative in Istanbul.

Also, the group opened its Pera Hotel which is one the most stylish destinations in the Taksim area. If you are looking for a vibrant and stylish hotel, Pera is a great Istanbul hotel which many describe as a life long experience to spend a few days in the premises.

Bomonty Furnished Residences for short term rent - Istanbul 

Sunday, July 11, 2010

Property Investors Turn to Turkey - Promising Real Estate Market

Here is an article in Financial Times about the interest in Europe for buying property in Turkey. The article suggests that the rental yields in Turkey are around 5,48% and this is higher than in comparable markets in Europe.

There is even an example of a development in Beylikduzu that is marketed by Experience International and the property investors are protected by a rental guarantee of 7.5% during the first 2 years. However, the right question should be "what happens after those two years?"

Assuming there is a reasonable supply-demand ratio in a market for both hi-end and low-end properties, the luxury properties usually have lower yields. For example, if there is only a few hi-end developments in a city and there is more demand, the prices will go up and luxury properties will yield better prices than others in a city. However, there is enough of both types of properties in Istanbul. And, as it is the case anywhere else, luxury properties have lower yields.

Yield is one part of the equation where the capital gain is the other important factor. So, the right question here is if you decide to sell this property in Beylikduzu after 2 years, will you be able to sell it for more than you bought? For the same amount, less or more? This depends on how much you paid, if there is demand at the time you try to sell and how quickly you will want to liquidate.

The article mentions an interest rate of 4.05% per annum with a loan to value of 70%. So, if you make an investment where the yield is around 5% and the interest is 4% you make some money out of this. But, what if you can't sell the property for the same price? These rental guarantees are usually built into the selling price giving the developer a higher margin to finance the future payments.

It all comes down to the location and sales price. Beylikduzu is a neighborhood outside of city center of Istanbul which is approximately 30-45 minutes by car. There are a lot of other developments in the area so we will need to know how much stock there will be in a couple of years and how many people wants to live in Beylikduzu.

Also, once the rental guarantee is finished, it may be very difficult to find a property manager to take care of the property and rent it out on behalf of the owner.

Articles like this may intend to show the strength of a city but it is not that easy to go ahead and make a purchase that will be profitable in the long term while providing peace of mind and positive cash flow.

I will suggest investing in the city center of Istanbul where there is always more stable demand and practically no increase in supply since there is nowhere to build new developments at a considerable rate. These properties offer similar yields, better capital gain potential and quicker liquidity.

Take a look at the article, it is an interesting read that suggests the bearish outlook of the Turkish real estate market.

Wednesday, July 7, 2010

Luxury Serviced Apartments Throughout Istanbul - Asian and European Sides

For business travelers coming to Istanbul, there is a wide range of options in Istanbul. There is nice post on the Istanbul Turkey Apartments blog about several luxury serviced apartments options throughout Istanbul. The listed properties include those both on the Asian and European side of Istanbul.

Corporate managers like Manzara are listed on site along with smaller property managers like Manzara Istanbul and I'zaz in Beyoglu.

Noa is also another property manager which is actually the management subsidiary of a development company. They seem to start renting out apartments for daily and weekly basis. This can be a good alternative if you are looking to stay at a central location within close proximity to many restaurants and bars.

The Asian part of Istanbul has been expanding rapidly with many industrial areas attracting foreigners for Short to medium terms. There are several good options listed in the article if you will be staying on the Asian side of Istanbul.

A further post with options on economic accommodation options is set to follow.

Thursday, May 20, 2010

Serviced Apartment Industry in Istanbul

Istanbul Turkey Apartments blog provides some unorganized text taken out of a business plan prepared for investment funds interested in creating a branded serviced apartment chain in Turkey. It is basically about the serviced apartment industy in Istanbul.

The text is interesting in some ways; not only because most of the concepts outlined are specific for Turkey, they can probably be apllied anywhere in the world. Marketing concepts are creative but not specific to Turkey. The data about the competition in the market is deleted along with most other parts of the plan.

The growth timeline is the only part of the business plan that gives an idea of what is possible in the serviced apartment industry in Turkey. Unique selling point is very interesting where it suggests upholding the principles of hygiene, safety and hi-tech equipment.

It is completely true that the serviced apartment industry in Istanbul and Turkey is under-penetrated and presents an early-mover advantage. A good investment and property manager with local experience can work together with foreign investors to develop and manage property investment portfolios with limited downsides and significant profit potential. 60 months is also a very reasonable period not only to create the leading serviced apartments brand in Turkey but also to build enough brand recognition to obtain the highest possible valuation during the exit.

I'd also like to note soem of the several problems with the current competitors making the investment idea a homerun for newcomers;

Most of the competitors in the market suffer from low capitalization and have limited number of units under management. Of those, who have easy access to capital, they choose to remain in the high-end part of the industry which results in focusing on only a small part of the market that are high-income travelers seeking upscale accommodation options.

Some competitors have portfolios that are made up of smaller properties with generally 5 to 8 units in different locations owned by multiple landlords. Targeting a limited type of travellers generally result in property managers to choose a part of the portfolio to focus on and increase the occupancy rates while other landlords suffer from low occupancy rates.

While there are no brands in the market with an established reputation for providing accommodation at multiple key locations and an expected level of services in all premises, there are several companies offering serviced apartments in limited quantities.

I am also confident that the serviced apartment industry in Istanbul and Turkey presents a great potential for foreign investors.

Cheap Apartment for Rent in Center of Istanbul

Falcon Building is a newly renovated 4-storey building in Aynalicesme region of Istanbul. Aynalicesme is

a neighborhood in Beyoglu right across the British Consulate in Galatasaray, on the other side of the Tarlabasi Street and with easy access to public transportation and is only minutes away from Galatasaray Square, Galata tower, Pera and Taksim Square.

Falcon building is designed to accommodate couples as well as up to 2 single guests in individual rooms if requested.
The building consists of 4 1+1 apartments and 2 studios. The commercial part in the entrance was converted into an art exhibition and artist meeting place and it is currently being used by Turkish photographers.

The apartments are currently being rented within a range of 500 - 700 euro per month depending on the length of the stay. Utilities such as electricity and gas are charged separately to tenants expense accounts at the end of each month.

Falcon Building is designed in a minimalist style using very light colors both on the walls and furniture.

If you are traveling to Istanbul and in need of a cheap or reasonable priced and new place to stay in, this is a good option that is worth a look.