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Istanbul doesn't generally feel much cheaper than San Francisco, except for rent. I pay $500 to live in a gorgeous apartment with a sea view in downtown Istanbul. That has really added up over time.
Isn't the cost of living there (eating) cheaper than in San Francisco ?
I am from Austria (Western Europe) and have been in Istanbul some weeks ago. If you are not going to eat at tourist traps I had the feeling that eating was cheaper than in Austria.
Buying clothes and shoes was cheaper than in Austria too - so I guess the cost of living there is less than in Austria.
Beer and alcohol is / can be pretty expensive - but other than that I thoughts it is pretty cheap there (as a tourist)
Off topic: I recall talking about this last year and I believe we have met quite randomly over some beers when I was travelling in Istanbul in July 2013! Good luck for your business!
As another story to back this up, I moved to India when I was bootstrapping my first business. I got down to $2/day for food, and found free rent. This low personal burn rate massively extended the amount of runway available. Of course, Bangalore is no longer low cost, but there are plenty of places that still are.
