Istanbul, is tipped to be the property hotspot within Turkey in 2010 according to international property experts at Experience International. And this insight has been echoed in the latest Emerging Trends in Real Estate Europe Report released last week by PWC and the Urban Land Institute who rank Istanbul, European Capital of Culture, number 1 in City Development Prospects in 2010.
Turkey has enjoyed significant growth over the past couple of years and is now a permanent fixture on the international property scene, some may say at the expense of other more traditional destinations such as Spain. This non eurozone country has capitalised on its attractive climate, stunning Aegean and Mediterranean coastlines, low cost of living and ease of access to the UK with 73,000 overseas nationals (Turkish Statistical Institute) already calling Turkey home.
It is not only demand for holiday homes which is fuelling Turkey’s property boom however; savvy investors are turning their attentions to rapidly growing cities such as Istanbul where the significant housing deficit presents opportunity.
As Managing Director of Experience International, Steven Worboys, comments,
“The success of Istanbul’s property market is a simple matter of supply and demand. Due to the rapid growth of the city (some 400,000 new inhabitants arrive each year to work or study) the existing housing stock has reached capacity.
It is estimated that 250,000 new homes per annum are required until 2015 according to the Real Estate Investment Trust Association to meet the demand generated by foreign as well as domestic investment.”
Due to elevated market prices and limited availability of land within the central business districts, developers are now turning their attentions to the thriving suburbs of Istanbul constructing modern, western style residences aimed to meet the demands of the burgeoning middle classes.
The town of Beylikduzu for example located within Büyükçekmece county on the European side of the Bosphorus, is where the new Crystal Heights apartments and duplexes will be constructed. Crystal Heights affords a strategic location close to the two major motorway routes into central Istanbul, 20 minutes from Ataturk International Airport and awaiting a new metro-bus link and metro system connection yet only 10 minutes from one of the most popular seaside resorts of the city.
As with other areas of Turkey, purchasing in Istanbul is straightforward with no restrictions on foreign ownership of property and up to 70% mortgage finance available. Prices remain affordable with apartments in Crystal Heights available from £45,000 (fixed in sterling) for example. Capital growth is currently estimated at 15% and rental yields of up to 10% per annum expected (Crystal Heights offers a 2 year rental guarantee of 7% p.a. which is bank bonded on completion of purchase).
Source: Experience International on 00 44 (0) 207 321 5858
