Waterfront areas of Istanbul offer potential to overseas property buyers

A strong demand for new homes
coupled with changes to the country’s property laws mean it’s a great time to
be investing in Turkey. A growing middle income population in the country means
that the demand for new homes is running at 250,000 per year. And, with
increasing foreign investment in the country, property prices in the
cosmopolitan city of Istanbul are set to rise sharply over the next few years.

Here, we look at the Turkish property
market and highlight some areas of Istanbul that offer great potential.

Bebek, Emirgan and Yenikoy are areas that offer great potential

Turkey’s position outside the
Euro is certainly helping its property market while the country’s economy is
also conducive to foreign property investors.

Maureen Madden, a property
investment consultant, told the Daily
Telegraph: “Inflation has fallen in the past few years with low incomes and
a predominantly cash-dominated economy keeping property prices low, although
these are now starting to rise, with the perception that the country’s economy
is on course for bigger and better things.”

Recent changes to the law which
are removing the ‘reciprocity’ rules – namely that foreigners could only buy
property in Turkey if Turkish residents could buy homes in their country – are
also expected to drive demand from foreign buyers.

The newspaper reports that
‘remodelled residential zones are now springing up around the city’s historic
old quarter and new-build resorts in the outlying suburbs are attracting
foreign buyers hoping to cash in before prices start to climb.’

Most existing British property
owners live in the tourist areas of Macka, Beyoglu and Taksim, although
previously unheralded neighbourhoods are open for business.

Cindy Uriona, a local property
agent, said: “The upscale waterfront districts of Bebek, Emirgan and Yenikoy
offer huge potential with properties selling for 20-30 per cent less than
before the recession hit.

“Bebek for example, has a great
selection of traditional villas and remodelled townhouses. A three-bed
apartment in a converted yali (an original 19th-century mansion) can be picked
up for around £275,000.”