Why Istanbul
Why Invest in Istanbul...
Istanbul conjures up images of smoky minarets and busy bazaars....a city which embodies mystery, intrigue, and glamour.....a city where Agatha Christie found inspiration to write her famous 'Orient Express' and a city which, due to it's location, history and values, is the natural capital of EuroAsia. Over the past decade, the city has experienced a renaissance, fast becoming an epicentre of fashion, art and culture, and deserving of the title 'the world's hippest city'. Istanbul is full of happening restaurants, bars, galleries and clubs, as well as being so full of historical sites that it would take an enthusiastic visitor weeks to explore them all. Not surprisingly therefore, Istanbul has been named European City of Culture 2010.
Istanbul's energy and modernity is relished by visitors and locals alike. Buying an Istanbul property will catapult you headfirst into one of the world's most exciting places. Istanbul has two airports, Ataturk and Sabiha Gokcen, and both have direct flights to many areas of the UK all year round. It's a very accessible city, with excellent links to the rest of Turkey. And now Istanbul is beginning to generate new excitement as the financial world becomes aware of the great things happening in this vibrant city.
Currently undergoing a massive regeneration with major investment in infrastructure, including transport, shopping centres, parks and schools, the Turkish real-estate sector is realising huge interest, especially as the Turkish government reports a shortfall of 2 million quality residences. As part of Turkey's progression to EU membership, legislative reforms introduced have made investing in the real estate market even easier and more profitable. The amendments to the Land Registry Law, the Draft Mortgage Law and the redrafting of tax laws are also designed to improve the competitiveness of the Turkish real estate sector.
Despite the the recent economic crisis, and the global economic recession which affected the European and US real estate, the Turkish real estate market escaped relatively unscathed. Whilst a reduction in demand and a downward trend in house prices has been observed all over Europe, according to TurkStat statistics, the number of apartment units sold in Turkey during the second quarter of 2009 increased 72% compared with the same period of 2008, showing the huge growth potential in the Turkish real estate market. Additionally, the entry of 'global actors' into the real estate market is increasing the competitiveness of the sector, while massive mergers and acquisitions taking place help its expansion and overall growth rates.
People in the know are saying great things about Turkey: ie, the "Emerging Trends in Real Estate Europe", prepared jointly by PricewaterhouseCoopers (PWC) and the Urban Land Institute, shows how global and local interest in the Turkish real estate sector has increased. According to the 2009 publication of this report, Istanbul is ranked as the third most attractive investment market in Europe after Munich and Hamburg. The Global Property Guide also reports rental yields ranging from 6.5% to 8.8%.
Furthermore, the International Monetary Fund predict Turkey's GDP will grow 3.5% in 2010, far higher than the UK (0.2%), Germany (0.1%), Russia (1.3%), US (1.6%), Italy (-0.1%) and Spain (-0.1%)! According to the IMF data, by the end of this year Turkey's GDP will reach USD 956.6 billion. The data predicts that this number will grow to USD 1 trillion in 2011. By 2015, Turkey's GDP is expected to reach USD 1.25 trillion.
World Bank's Turkey Director, Ulrich Zachau said on 09.10.10, that growth in Turkey's gross national product would continue again next year, estimated to be around 5 percent and also that the drop in unemployment is also expected to continue next year. Growth is also forecast for per capita income, with Turkish employees averaging a wage of USD 13,400 by the end of this year, expected to increase to USD 16,300 by 2015.
The signs are good and anyone seeking an investment property would do well in Turkey and specifically in Istanbul; Istanbul's young population are a prime rental target, and rental yields in excess of 6%pa can easily be achieved here with very strong capital appreciation predicted. The combination of a young, growing population, a strong economy with good predictions, low property prices and the desire for better quality housing significantly highlights that this is the best time to invest in Istanbul.
