Istanbul is a burgeoning market, generating interest from all quarters. Saudi Arabians with money, who want to make sound investments in a country with a more relaxed political backdrop. Iranians desiring a bolt-hole away from the home regime, attracted by potential citizenship after living in Turkey for 10 years and who are looking for a safer haven for their money after experiencing rampant inflation at home, with sanctions tipping inflation over 30%.
All this has been made more possible since the relaxation of the reciprocity rules, which determine which nationalities are permitted to buy property in Istanbul and in Turkey more broadly.
Buy Istanbul Apartments – Europe
Of course British investors, in-the-know, are also increasingly attracted to Istanbul Real Estate owing to the decent rental yields of between 5 – 10% and double digit, capital growth. A recent report (TRPPI) showed that residential home prices had appreciated by 17% in a year to January 2013 (9% with inflation-adjustment). For Istanbul, the residential sales prices for existing homes rose 19%.
Given the uncertain nature of a number of European property markets, the European Istanbul property market is proving an alluring prospect. In fact such is the frenzy of buying activity in Istanbul Real Estate, the picture changes weekly, if not daily. New buyers flood in, more apartments in Istanbul get built. Questions get raised about how much demand and supply are in kilter, in the Istanbul apartment market.
Buying Istanbul apartments and Real Estate – the demand?
Istanbul’s population of 15 million is impressive in size and makes for a very busy city. What’s more, talk locally is of Prime Minister Recep Tayyip Erdogan’s plans to renovate, or re-build, chunks of the central part of Istanbul’s properties. Taksim square is already undergoing renovation and plans to turn Tarlabasi, Beyoglu, into the Champs Elysées of Istanbul are already underway. It is estimated 40% of Turkey’s housing stock needs replacing.
For renovation of sections of Istanbul to happen, property dwellers or landlords with tenants, would be relocated, realistically further out of the city centre. This is where much of the new build Istanbul apartments are being constructed. 68% of Turkish people own their own home, so about 30% of the population rent their homes (HOFINET) in Turkey and there is likely to be a higher % of renters in the City of Istanbul.
Buying Istanbul apartments – infrastructure
The infrastructure is being improved continuously, with new Metrobus stations being added at Beylikdüzü, metro extensions being built, to not only connect more of the city, but to also pass under the Bosphorous to connect European Istanbul with Asian-side Istanbul.
So add this local demand to the international demand, which is being stoked up by Istanbul’s increasing stature as a city on the world stage, not only as a candidate city for the 2020 Olympics, as well as Turkey’s growing economy, you get a potent demand-led market. Quality developments are 30-50% sold before they are completed. These are the ones that are building to meet investor needs and have gone about getting the Building Licences through the proper official channels.
As with any investment, buying apartments in Istanbul is best done through a professional agent, who can guide on which are the better and more desirable properties to consider.
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