About Istanbul
Istanbul is not just the powerhouse of the Turkish economy; it is the crossroad of different cultures and the gateway between two mighty continents. It has an enviable history that opens the doors to some of the most remarkable eras of Human civilization. Istanbul has a population of approximately 16 million and is bustling with life. The historical center of the city lies in the district of Sultanahmet, which is a narrow peninsula between the Sea of Marmara and the Golden Horn. Istanbul can be compared to some of the most modern cities in the world and yet, there is the right mix of traditional and modern.
An upcoming real estate property market, Istanbul has everything to offer in terms of infrastructure as well as stylish and modern architectural homes.
Population Growth
Around 12 million people live in Itanbul, making it one of the twenty largest metropolitan areas in the world. The annual population growth rate of Istanbul has been above the average of the country due to high migration to Istanbul. The decreasing average household size of 3.9 compared to last decade are the indication of increase of demand for real estate in the coming years.
Economic Growth
The megalopolis accounts for roughly 45 percent of national industry, 55 percent of GDP and 60 percent of the country's exports. This generates huge wealth in the city and has leads to high increase in wages. As a result there is big demand on the property market and more and more middle class Turkish people are purchasing their own apartments.
Capital Growth
Istanbul property has appreciated on average of 30% to 50% and residential rents raised 35-40% on an annualized basis for the last three years. Investors in Istanbul enjoy a capital growth of approximately 30 % between off-plan and completion of developments. Taking into account the continued growth of the Turkish economy and the anticipation that the average annual growth shall be around 4.2% until 2009 now is the time to invest in Istanbul's residential property market and take advantage.
WHY INVEST IN ISTANBUL
With a population of over 12 million inhabitants, Istanbul is the powerhouse of Turkey's economy and is it widely suggested that Istanbul will become a major global business centre should the country be permitted to join the EU.
Located in the north-west Marmara Region of Turkey, Istanbul encloses the southern Bosphorus which places the city in a unique position covering two continents - the Western portion is in Europe, while the Eastern portion is in Asia. The emergence of China and India as global economic powers has changed the economic map and has enabled Turkey, and particularly Istanbul, to position itself as a logistical centre and Europe's border.
Istanbul's main airport is Ataturk International Airport located in the Bakirkoy district of Istanbul, 24 km from the city centre. There are daily direct flights from the UK with British Airways and Turkish Airlines. It's secondary airport, Sabiha Gokcen International airport is located in the Kurtkoy district on the Asian side of the city, 45 km from the centre, close to the Istanbul Park GP Racing Circuit. EasyJet have established daily flights to this airport from London Luton as a result of increased tourist traffic to the city.
Record levels of Foreign Direct Investment
When talks were opened with the EU regarding Turkey's accession into the EU there was an imminent surge of Foreign Direct Investment particularly in Istanbul's retail property market. The amount of shopping area per 1,000 people in Istanbul is well below the average for the European union at 32 sqm per 1,000 compared to 117 sqm per 1,000 and as the per capita rental prices on commercial space is in Istanbul is much cheaper than that of other European cities there is room for massive expansion in the retail sector. This has fuelled investment in the city with two of the worlds most recognised retail brands, Ikea and Harvey Nichols opened stores in the city in 2005 and 2006.
Foreign Ownership laws in Turkey
Foreign investment in Istanbul is incredibly high and now foreign ownership is once again allowed and laws protecting property rights have been tightened, more and more foreigners are purchasing residential property in the city. There is a demand for short-term lettings due to increased tourism traffic in the most fashionable areas of the city, however the main market is for buy-to-let residential property due to the record number of businesses now establishing bases in Istanbul. These businesses require good quality commercial space and their professional staff, in turn require a higher standard of accommodation to live in - thus creating a buoyant buy-to-let market for Foreign Investors.
Young and professional population
65% of the 70 million population of Turkey are under 35 years old, meaning there is a healthy workforce that will be of working age for decades to come. Also, the small manufacturing industries that have historically dominated the city are now moving out and are being replaced by commercial and services companies, as indicated above. These new companies are attracting professional staff, which in turn increases wages and therefore quality of life in the city.
Istanbul's newly developed suburbs such as Beylikduzu and Umraniye and Kurtkoy are becoming increasing popular with foreign buyers as returns can climb to 20% or more.
WHY INVEST IN ISTANBUL
With a population of over 12 million inhabitants, Istanbul is the powerhouse of Turkey's economy and is it widely suggested that Istanbul will become a major global business centre should the country be permitted to join the EU.
Located in the north-west Marmara Region of Turkey, Istanbul encloses the southern Bosphorus which places the city in a unique position covering two continents - the Western portion is in Europe, while the Eastern portion is in Asia. The emergence of China and India as global economic powers has changed the economic map and has enabled Turkey, and particularly Istanbul, to position itself as a logistical centre and Europe's border.
Istanbul's main airport is Ataturk International Airport located in the Bakirkoy district of Istanbul, 24 km from the city centre. There are daily direct flights from the UK with British Airways and Turkish Airlines. It's secondary airport, Sabiha Gokcen International airport is located in the Kurtkoy district on the Asian side of the city, 45 km from the centre, close to the Istanbul Park GP Racing Circuit. EasyJet have established daily flights to this airport from London Luton as a result of increased tourist traffic to the city.
Record levels of Foreign Direct Investment
When talks were opened with the EU regarding Turkey's accession into the EU there was an imminent surge of Foreign Direct Investment particularly in Istanbul's retail property market. The amount of shopping area per 1,000 people in Istanbul is well below the average for the European union at 32 sqm per 1,000 compared to 117 sqm per 1,000 and as the per capita rental prices on commercial space is in Istanbul is much cheaper than that of other European cities there is room for massive expansion in the retail sector. This has fuelled investment in the city with two of the worlds most recognised retail brands, Ikea and Harvey Nichols opened stores in the city in 2005 and 2006.
Foreign Ownership laws in Turkey
Foreign investment in Istanbul is incredibly high and now foreign ownership is once again allowed and laws protecting property rights have been tightened, more and more foreigners are purchasing residential property in the city. There is a demand for short-term lettings due to increased tourism traffic in the most fashionable areas of the city, however the main market is for buy-to-let residential property due to the record number of businesses now establishing bases in Istanbul. These businesses require good quality commercial space and their professional staff, in turn require a higher standard of accommodation to live in - thus creating a buoyant buy-to-let market for Foreign Investors.
Young and professional population
65% of the 70 million population of Turkey are under 35 years old, meaning there is a healthy workforce that will be of working age for decades to come. Also, the small manufacturing industries that have historically dominated the city are now moving out and are being replaced by commercial and services companies, as indicated above. These new companies are attracting professional staff, which in turn increases wages and therefore quality of life in the city.
Istanbul's newly developed suburbs such as Beylikduzu and Umraniye and Kurtkoy are becoming increasing popular with foreign buyers as returns can climb to 20% or more.
