4 Oct, 2023
Real Estate Investment Strategies

Get to Know Kağıthane District in Istanbul: A Prime Real Estate Investment Destination

If you’re on the lookout for a promising real estate investment destination, you’ve come to the right place. In this article, we will uncover the unparalleled investment potential of Kağıthane, its strategic location, the booming real estate market, and why it stands as a prime choice for those looking to make a sound real estate investment in Istanbul. Get ready to explore the dynamics of Kağıthane’s real estate landscape and discover the optimal investment opportunities that await in this vibrant district.

Where is Kağithane located?

Kağıthane is one of Istanbul’s districts located on the European side. It is situated at the northern extremity of the Golden Horn and extends alongside the Alibeyköy and Kağıthane rivers that empty into the Golden Horn. Previously, it was a residential area with a significant industrial presence, as evident in its name, “the paper factory,” in Turkish. However, in recent times, it has gained prominence as a favorable spot for real estate investment in Istanbul.

Urban Evolution of Kağıthane  

During Suleyman the Magnificent’s reign, Kâğıthane, once known as Sadabad, was a favored retreat for the Ottoman court, frequently visited for hunting, horseback riding, and related equestrian activities. The 17th and 18th centuries saw a notable rise in the area’s prominence, particularly during Sultan Ahmed III’s Tulip Age, as numerous aristocrats constructed residences and palaces there.

After the establishment of the Turkish Republic in 1923, the uppermost section of the Golden Horn was reconfigured into an industrial area, leading to a proliferation of factories in Sadabad. This transformation prompted millions of immigrants to flock to the region during the 1950s, seeking employment in manufacturing, construction, and services. Initially, informal settlements, colloquially termed “gecekondus” in Turkish, occupied the area before being replaced by organized residential structures.

In the early 21st century, Kağıthane underwent a huge transformation due to urban regeneration efforts, elevating the neighborhood’s considerable prospects for real estate investment in Istanbul. This was made possible by its advantageous location and integration with the updated intra-city transportation networks.

Kağıthane: A successful illustration for urban regeneration

Starting from 2007, Kağıthane experienced a rapid pace of urban development over the following years. The establishment of the metro line project, the rejuvenation of the valley and adjacent areas close to central roads, and the opening of the prominent Bila Pasha tunnel attracted interest from both local and global audiences towards Kağıthane. This, in turn, stimulated the growth of various projects and the growth of real estate investments in the area.

Relating to this, Kağıthane Municipality Mayor Mevlüt Öztekin stated that out of the 220,000 independent units in the district, 130,000 were built after 1999, indicating that 60% of the independent units underwent urban transformation.

What makes Kağıthane an advantageous destination for real estate investment?

Let’s uncover the compelling reasons that make Kağıthane a top-notch choice for real estate investment.

Promising Location with High Potential

Kağıthane possesses highly advantageous geographical features due to its central position and its placement along two major highways. Situated near Levent, Maslak, and Şişli—three of Istanbul’s pivotal investment districts—it offers a diverse range of real estate options at more affordable rates. As a result, middle-income individuals who commute daily to nearby business hubs often prefer Kağıthane. This important demand for real estate in the area led to substantial growth, catching the attention of investors who now consider Kağıthane as one of Istanbul’s prime real estate investment hubs with a promising return on investment.

Strong Infrastructure

Kağıthane, a vibrant district in Istanbul, stands out for its robust and ever-evolving infrastructure, making it an enticing hub for both residents and businesses alike. The district boasts an impressive network of well-maintained roads, and public transportation, ensuring smooth connectivity within the area and to other key parts of Istanbul.  In fact, Kağıthane  directly connects to Şişli-Mecidiyeköy which is a transportation hub that connects to all parts of the city. On the other side, Kağıthane includes the only direct metro line to Istanbul airport reachable thus in only 30 minutes.  

Moreover, the commitment to enhancing the infrastructure is evident through ongoing projects aming to modernizing and expanding the existing facilities, such as the efficient public transportation system, good healthcare centers, and top-notch educational institutions. Furthermore, the district’s strategic location near major highways and business districts amplifies its appeal for investors and entrepreneurs seeking a dynamic and accessible location. With a dedication to continual development and innovation, Kağıthane promises a seamless blend of convenience and growth within its strong infrastructure, creating a promising environment for all residents and businesses to thrive.

Affordable property prices

Kağıthane’s importance is consistently measured by its performance in comparison to neighboring areas, which constitute the primary economic districts of Istanbul. However, the lack of new construction in these neighboring districts such as Maslak and Levent, along with their solid infrastructure, leads to an increase in property prices. In fact, the cost per square meter in the Maslak area is almost 4 times the price in Kağıthane. Consequently, it becomes a more viable choice for the middle-class demographic. Furthermore, considering real estate investment in Istanbul on an interim basis, Kağıthane remains an attractive option, especially for foreign investors  seeking the Turkish Citizenship investment program.

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