High-end Residential Developments Rising Throughout Istanbul

In Istanbul, the most desirable city in Turkey, east meets west and old meets new, offering something for everyone.

"Istanbul has all of the history and magic and is a city that has an amazing amount of sophistication that would match anywhere in Europe mixed with the manicness of Asia," said Annie Burnett, of Luxury Property Turkey.

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The same could be said about the housing stock, which is extremely mixed, and offers the choice between historic homes and contemporary developments, urban living and spacious villas.

Istanbul’s most historic—and coveted—homes

In Istanbul, the most desirable, and most historic homes are the Yalı, Ottoman seaside mansions lining the banks of the Bosphorus, an 18-mile straight of water that divides the European and Asian sides of the city.

The homes were originally intended as summer houses, and feature wooden domes and lines of low wooden windows to allow for a gentle breeze off the waterway on hot summer nights. They were built predominantly in the 19th Century, and have ornate interiors with moldings along with walls and ceilings painted in gold and bright colors. According to Pamir & Soyuer, a Turkish real estate firm, the oldest home on the Asian side was built in 1699, and the oldest home on the European side was built in 1782.

The Yalı can sell for upwards of $15 million, depending on the condition and the materials used. Wooden ones are more valuable than concrete ones, and the most valuable of all have important histories.

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In March 2015 Qatari businessman Abdulhadi Mana Al Hajri purchased the Erbilginler Yalı, a 64-room, 30,000-square-foot home for over $100 million, according to  Property Turkey.

"If they have an outstanding history, if some Paşa, well-known families have lived in the Yalı, then they are more prestigious," said Ozlem Atalay, a research analyst from Pamir & Soyer.

Of the homes in Istanbul they "have the highest asking prices, they have a large amount of living space, and they are rare."

She added that they are also very expensive to maintain, because they are "mostly constructed in wood, so it is hard to look after them and to look after them you need so much money."  

Newer options in the capital: Smaller homes and more amenities

Beyond the mansions by the riverside and other existing old housing stock, buyers must make the choice between gated communities toward the periphery of the city, and new development high-rises in the center, which have often replaced other buildings. Villas are also available in gated communities on the outskirts of the city, such as in Göktürk or Beykoz, "where the land is more available," Ms. Atalay said.

"High-rises are found both in the city center and the periphery. If they are located in the city center, they are mostly luxury residential units or parts of luxury mixed use projects," said Ms. Atalay.  "Gated communities are mostly located around the periphery through the north of the city around forest area. If you are affluent, have a family with kids and want to be far from the city center,  you would prefer a gated community located far from the city."

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According to Kerim Bertrand, the country manager for Turkey for  REIDIN, a real estate research firm, the gated communities offer recreation areas, green space, kindergarten and athletic facilities, while the high-rises offer more urban amenities in addition to fitness facilities.

"I would still say, city center or around it, is still more desirable," said Ms. Atalay.  "These skyscrapers are glass, and high-end marble is preferred in the kitchen. There is no traditional architecture style going on."

The prices reflect this. The suburban villas are priced from US$3,000-US$5,000 per square meter, whereas high rises in the city center start as US$3,500 per square meter and go up to US$20,000per square meter, as is the case with the Zorlu Center project, a luxury development and arts complex.

"There is a trend of developing new projects in city centers through urban regeneration, rather than building in the extremities of Istanbul," Mr. Bertrand said. These new projects feature contemporary touches.

According to him, some exciting new projects for 2016 include the Quasar Istanbul, a new development in the business district of Mecidiyeköy attached to a Fairmont Hotel; YooIstanbul, a Philippe Stark inspired development located five minutes away from the Bosphorus; and Emaar Square, a mixed-use development.

All of these projects have modern amenities such as fitness centers, parking, and security, popular with today’s buyers, who are often willing to forego space for convenience.

Still, Ms. Atalay said, some people still love the older homes, especially because they are most often located in desirable places in the city center. "Old stock is far from these features, but they can still be preferred due to their locations."

Istanbul’s old neighborhoods in the city center being revitalized

In the city center, old neighborhoods, even ones that weren’t previously considered high-end, are being revitalized and regenerating. "Fikirtepe, a central neighborhood in the Kadiköy is completely under construction," said Mr. Bertrand.

The Kadiköy is a large and vibrant neighborhood on the city’s Asian side, near the Sea of Marmara, which faces the European side of the city and the historic city. The area has "slums that have been torn down, with new skyscrapers, gated communities and malls surfacing, creating a completely new life environment," Mr. Bertrand said.

One particularly desirable area in Kadiköy, according to Ms. Atalay, is Bağdat Street. "The stock is old here but the area has always been one of the luxury areas of Istanbul. And currently, old stock is also being replaced by new developments," she said.

Another area in the city center, Beyoğlu is also undergoing a resurgence. Located on the European side, and separated from the old city by the Golden Horn, it has been given a second life.

"After some areas of the district were announced as the renewal area, there have been mixed-use projects going on," Ms. Atalay said. New developments in Beyoğlu include the Tomtom Gardens, a renovated collection of 17 buildings and courtyards, and the Tarlabaşı 360, which mixes the 19th Century building style of the area, with its balconies and detailed windows, together with sleek contemporary interiors and modern kitchens.

New developments in the areas nearby are also expected to increase the status of Beyoğlu. The Galataport project, a new luxury mixed-use project in the neighboring district of, Karaköy "will probably boost the area around Tophane and Karaköy up to Beyoğlu," said Ms. Atalay. The project features over 30 acres of new green spaces for the city, as well as restored historic buildings and an art museum.

Seaside developments also emerging

Befitting Istanbul’s location at a meeting of waterways, other new seaside developments and ports will create new neighborhoods in the city. On the coast of the Atakoy is the Sea Pearl Istanbul, a new development due to be completed between July 2017 and February 2018. It is slated to become the only luxury development on the seaside.

Meanwhile, the Pearl of Istanbul, a mixed-use development on a bluff outside the city on the Marmara Sea, will essentially create a new neighborhood, with a chain of manmade islands and a harbor with 500 boat slips. It is due to be completed in 2023.

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Its architect, Erik Anderson from Forum Studio, said that the developer, Hattat Holding, wants the project to be symbolic. It has the "intent of having not only an iconic development for that area of Istanbul, but for all of Turkey. It represents the optimism that Turkey has for continued success," Mr. Anderson said.