Istanbul’s property market shows no sign of faltering in 2011 as the city’s population continues to soar with the rate of migration more than doubling during 2009/10 according to latest official figures.
Over 102,000 migrants made Turkey’s largest city their home during 2009/10, accounting for 7.7% of Istanbul’s total population compared to 39,500 during 2008/09, data from the Turkish Address Based Population Registration System (ADNKS) shows.
This means that buying a property to rent out in the city is becoming more attractive, said Alexander Tomlinson, director of Istanbul property specialists, Gem Invest, who has lived in the city for many years.
‘Istanbul always has held a magnetic draw. Many migrants from the less developed regions of Turkey, often the east and south, relocate to Istanbul for economic factors. Due to its strategic location at the crossroads of Europe and Asia the city has become the economic workhorse of Turkey and people are understandably keen to try and claim their share of this prosperity,’ he explained.
With a population of nearly 17 million people and still growing, demands placed on the city both in terms of the labour market, transportation and infrastructure, service provision and indeed accommodation are significant.
The central business district and financial heart of the city is densely populated with land and property prices amongst the highest in Istanbul driving developers to select alternative locations in which to meet the acute shortage of housing.
According to Tomlinson it Istanbul’s peripheries and outer suburbs where new housing is being developed and where many Istanbulites, both migrants and natives, are and will reside in the future. The combination of more space, lower land prices and an improving transportation infrastructure has meant that districts, particularly on the desirable European side such as Beylikduzu, are seeing their populations swell.
‘Both private developers and local authorities have recognised the impact of the near doubling of Istanbul’s positive net migration rates. Various mega projects have been put forward as possible solutions to needs of the ever growing population but all parties appear to agree that it is to the suburbs of Istanbul that the future lies,’ he explained.
Districts such as Beylikduzu are already seeing improvements in transportation links. The new Metro link will be completed by early 2012 enabling quicker and easier access to the city centre. Due to its location, wide variety of facilities and future prospects there is a high demand for accommodation in Beylikduzu from young professionals and university students. ‘The rental market in this district moves very quickly with western style, modern residences especially sought after creating a superb opportunity for buy to let investors. Properties in Beylikduzu, whilst seeing up to 30% price growth from off plan to completion, remain affordable with apartments at Richmond House, for example, starting from £50,000 with a two year rental guarantee at 7.5% per annum,’ he added.
The development is in the heart of Beylikduzu, 150 meters from the new Metro bus line and it has one and two bedroom apartments with on site facilities such as a fitness centre, cinema and cafe/roof terrace.