You can look at what is the rent multiplier to understand how advantageous a house is for investment.
The rent multiplier is the calculation of how long the amortization period is in terms of the rental income of a house. The rent multiplier is calculated by dividing the house price by the monthly rental income. It tells you how long you can get your investment back by renting.
The rent multiplier is also known as the home price rental rate. It is calculated in two ways as annual rental multiplier and monthly rental multiplier. In the table below, you can see the rental multipliers calculated for 3 different houses.
| Calculating the rent multiplier | |||
| House price for sale | House 1 | House 2 | House 3 |
| 500,000 TL | 700,000 TL | 1.000.000 TL | |
| Monthly rental fee | 1,250 TL | 2,500 TL | 4,000 TL |
| Rent multiplier (monthly) | 400 | 280 | 250 |
| Rent multiplier (yearly) | 33 | 23 | 21 |
What are the favorite investment places of Istanbul?
The table below shows how many people in Istanbul have gained and lost in the past year according to their average square meter prices in a year until April 2018 for those who ask the question of where to invest in Istanbul.
| Average square meter prices of apartments for sale in Istanbul | |||
| Istanbul districts | April 2018 square meter price | 12-month average square meter price | Annual rate of change |
| Adalar | 4551 TL | 5327 TL | %-12,70 |
| Arnavutkoy | 2569 TL | 2222 TL | %15,72 |
| Atasehir | 4894 TL | 5268 TL | %-8,39 |
| Avcılar | 2566 TL | 2453 TL | %5,42 |
| Bagcılar | 4607 TL | 3360 TL | %40,63 |
| Bahcelievler | 3556 TL | 3055 TL | %17,67 |
| Bakırkoy | 3684 TL | 8804 TL | %-59,39 |
| Basaksehir | 3207 TL | 3255 TL | %2,85 |
| Bayrampasa | 3295 TL | 3360 TL | %-8,75 |
| Besiktas | 6135 TL | 18478 TL | %-66,05 |
| Beykoz | 3969 TL | 9726 TL | %-61,69 |
| Beylikduzu | 3195 TL | 2534 TL | %31,05 |
| Beyoglu | 5922 TL | 5170 TL | %22,48 |
| Buyukcekmece | 3468 TL | 2932 TL | %26,34 |
| Catalca | 2581 TL | 2385 TL | %8,13 |
| Cekmekoy | 3462 TL | 2996 TL | %18,97 |
| Esenler | 2742 TL | 2667 TL | %2,54 |
| Esenyurt | 2784 TL | 2062 TL | %37,96 |
| Eyup | 6139 TL | 7092 TL | %-18,57 |
| Fatih | 3608 TL | 3928 TL | %-8,59 |
| Gaziosmanpasa | 2588 TL | 3284 TL | %-35,77 |
| Gungoren | 2836 TL | 2880 TL | %0,11 |
| Kadıkoy | 7084 TL | 7837 TL | %-9,37 |
| Kagıthane | 3779 TL | 3614 TL | %6,36 |
| Kartal | 3111 TL | 3454 TL | %-4,34 |
| Kucukcekmece | 4902 TL | 4127 TL | %19,62 |
| Maltepe | 3974 TL | 4020 TL | %0,86 |
| Pendik | 3276 TL | 2958 TL | %12,19 |
| Sancaktepe | 3571 TL | 2423 TL | %48,85 |
| Sarıyer | 7003 TL | 9400 TL | %-27,83 |
| Silivri | 2407 TL | 2268 TL | %12,16 |
| Sultanbeyli | 3108 TL | 2986 TL | %0,75 |
| Sultangazi | 2769 TL | 2420 TL | %18,94 |
| Sile | 3354 TL | 3406 TL | %5,97 |
| Sisli | 5451 TL | 5797 TL | %-4,17 |
| Tuzla | 3687 TL | 2830 TL | %38,56 |
| Umraniye | 3747 TL | 3573 TL | %7,61 |
| Uskudar | 5377 TL | 5000 TL | %8,43 |
| Zeytinburnu | 3653 TL | 3681 TL | %9,04 |
Written By