Istanbul, the 2nd best city for Investment
Turkey’s largest city, Istanbul, is truly a place of contrasts and there can be no other city in the world where the East meets the West in such a head-on fashion
The Bosphorus, also known as the 'Istanbul Strait', runs through the city and is recognised as forming the boundary between Europe and Asia. On the west of the Bosphorus, Istanbul's European side, there are the tree-lined boulevards and modern-day shopping centres which you would expect to find in a major Western European city, while on the other side of the Strait the skyline is dominated by minarets and domes. Add to this clear remnants of Turkey's past, in the shape of Greek ruins, Roman theatres, Mosques and orthodox churches, and one can start to see how Istanbul mixes Middle Eastern, ancient European and modern Western European characteristics into one diverse melting pot.
With such a vibrant mix of cultures all colliding
in one sprawling city, it is no real surprise
that Istanbul has long been an extremely popular
tourist destination – a reputation that will be
enhanced further over the coming years, with the
city expected to be named the European Capital
of Culture for 2010. In recent years Istanbul
has become an increasingly wealthy city. According
to Forbes, it is home to the fourth highest number
of billionaires in the world, while the city's
economy is also booming. What's more, the city's
population (which is already approximately 12
million) is growing at around 1.5 per cent a year,
meaning there has possibly never been a more exciting
time to consider buying a home there. With an
excellent choice of 'Europeanised' apartments
for sale in Istanbul in and around the city
centre, and luxury developments offering all the
facilities you could ever wish for, now is an
excellent time to buy property.
A recent PriceWaterhouseCoopers and Urban Land
Institute survey officially named Istanbul as
the second-best place in the world to invest in
property, behind Moscow in Russia, with affordable
property prices, cheap living costs and decent
rental yields all contributing towards the city's
investment potential. Indeed, despite being the
economic and cultural hub of Turkey, Istanbul
was voted only the 37th most expensive city in
the world in a recent survey, and there is certainly
property available in the city to suit all budgets.
"There is a wide range of property available in
Istanbul, it's much like London in its range of
property," explains Julian Walker of Spot Blue.
"The property we currently have listed starts
from about £35,000 in Beylikduzu, but we also
have one property on the market for $12.5 million
(approximately £6.3 million). It all depends on
the type of property and area." Property prices
in the city are buoyant at the moment, however,
so Istanbul may not maintain its reputation as
an affordable destination for long. "Increased
pressure on the housing market has led to property
demand outweighing supply, creating a strong buy-to-let
market," explains Victoria Jones of Select Property.
"A recent report has suggested that there is a
need for 750,000 new residences in Istanbul, which
is having a positive effect on housing prices
that have already increased consistently at 18
to 30 per cent between 2003 and 2006." Walker
echoes Jones's sentiments. "While there might
be a global credit crunch, buy-to-let property
in Istanbul are proving popular, especial
fly for a younger demographic which are looking
to use the profit to get on the UK housing ladder,"
he says.
Not that Istanbul's healthy capital appreciation levels are the only mouthwatering prospect for investors. As an established tourism market, and with an increasing number of international companies setting up home in the city, those who invest in Istanbul, and choose their property wisely, stand to make a healthy profit on rental yields. The latest Istanbul Housing Sector Report predicted that the average annual rental yields in the city are between 6–8 per cent. And it is not only on the European side of Istanbul which holds promise for investors at present. "Traditionally the west side has been the centre of commercial activity in Istanbul. However, due to a shortage of available land and land prices, there has been a residential and commercial property boom on the east side," says Jones. "Property prices in the east is around 50 per cent cheaper than in the west, and commercial organisations, homeowners and tenants alike are beginning to realise the benefits of superior urban planning, better infrastructure, additional space and green areas as well as superior quality developments," she adds. With all this in mind, it is no real surprise that, according to the International Investor's Association, foreign investment in Istanbul property is estimated to reach an alltime high this year, with more than $15 billion set to be spent.
Istanbul, 2nd best city for Investment - Article taken from World of Property
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