Istanbul real estate has consistently proven to be fruitful for investors over recent years. A city with more than 12 million residents, based on two different continents, and being a business hub where East meets West, Istanbul is rising, and rising fast. We talk to our Turkey specialist Mr Tolga Ertukel of Place Overseas regarding the future of the Istanbul investment market.
“While the markets in European cities remain uncertain, Turkey’s largest city has offered a solid, reliable alternative to Western Europe. I can see this continuing in 2012 and beyond.” Says Tolga.
Istanbul is a huge city, and within Istanbul there are several districts to invest in. Tolga takes us through the best places for investment in Istanbul.
He said: “Beylikduzu is a district alive with activity and a construction boom that is frantically trying to satisfy demand for good quality houses – suitable for a highly educated, though perhaps less demanding population than other Istanbul districts. This is where working class meets middle class meets intellectuals and this is always a recipe for growth and development as seen to spectacular effect in cities in the UK.” This district also offers plenty of potential for rental yields, as Tolga explains that the district has a student population of more than 14,000 and three universities; there are also plenty of jobs in this part of Istanbul.
“The young, dynamic district of Beylikduzu has generated annual growth of 15% which puts it firmly at the top of the list but there are other hidden gems to consider in Istanbul, including Yesilyurt.”
Yesilyurt means ‘green homeland,’ and is very close to the Marmara Sea – According to Tolga; this district is a favourite for middle class and high end investors. “The population in this district are affluent and living mainly in low rise houses and apartments with sea views, if they can get hold of them of course. This district is also home to the city’s air force academy and with rental yields approaching 8%. You are unlikely to be disappointed by the rental returns in Yesilyurt.”
On the European side of Istanbul, you will find the district of Esenyurt. Esenyurt is an up and coming area bustling with development and growth, and as such; you can find homes for as low as £25,000 for a luxury studio apartment. Tolga says: “As well as having the cheapest entry level top Istanbul investment districts, a journey to the nearby airport from this developing suburban zone of Istanbul will take you just 15 minutes by car.”
“The district is also near to the city centre and university campuses and close to the booming Beylikduzu district. Town planners are in the process of creating concepts for cutting edge mixed use developments modelled on those being created elsewhere in the city.” Many of these are currently near to completion, and this should place Esenyurt high on investors’ lists for 2012 and 2013.
Investors also consider Bahcesehir district of Istanbul. Bahcesehir means ‘Garden City’ in Turkish because of the picturesque green surroundings and natural lands. Bahcesehir is situated close to the City Centre areas of Istanbul. Tolga says: “Government backed projects by leading Istanbul developers whom we work in close collaboration with provide low entry level housing, excellent facilities within well established compounds, brand new transport links to link to the City Centre locations – making Bahcesehir a very popular investment and housing district.”
Istanbul is currently the world’s 20th largest city and is seen by investors as an emerging and growing city. An alternative to weak European markets, Istanbul offers great return on investments and rental yields.
Recently, restrictions have been lifted which now allow foreigners to invest in the historic, cosmopolitan district of Beyoglu. “Beyoglu is within walking distance of Taksim Square, the Trafalgar Square of Istanbul. Rental yields here approach 9% for smaller apartments, though it has to be said, it is expensive in this district and yields can fall dramatically for larger apartments.” Said Tolga.
Tolga summarises: “Our comprehensive portfolio of Istanbul real estate from each segment group and all districts of Istanbul gives us strength within the Istanbul markets. Our local Istanbul offices with qualified consultants – all excellent English speakers and highly knowledgeable within the Istanbul real estate market provides professional assistance to our worldwide Istanbul investors.”