Istanbul has been named the top city in Europe for new property acquisitions and development in 2011 by a new report, as it is less likely to be affected by the economic problems affecting the rest of the continent.
For the second year in a row the annual Emerging Trends in Real Estate Report Europe from PwC and the Urban Land Institute puts Turkey’s largest city at the top of its chart for development prospects.
Istanbul is ranked above London, in second place, and Munich in third place. Istanbul is also placed second in the report’s existing property performance table, behind Munich but above London and Paris, in third and fourth place respectively.
The report says that currently, the biggest issue is to find attractive assets to invest in as well as good new investments, especially core assets in top locations with strong tenants.
With a population of nearly 18 million people and a burgeoning middle class, demand for new build highly quality Western style housing continues to grow. The European side of the city remains the most sought after with suburbs such as Bahcesehir, just 20km to the west of the financial centre, becoming increasingly popular.
‘Istanbul remains one of the few locations in Europe, if not the world, with real property investment potential. The population of the city continues to grow year on year yet despite increased levels of construction there still remains a serious shortage of quality accommodation, some 250,000 units per annum,’ said Alexander Tomlinson, Istanbul property investment expert and director of agency Gem Invest.
‘Land prices in Istanbul’s dense CBD have risen so much so in recent years that developers are looking to the suburbs, especially those on the desirable European side, to construct affordable housing stock,’ he explained.
‘Equally, many Istanbulites especially those with families, are attracted to areas such as Bahcesehir as they offer green spaces as well as shopping malls, leisure activities and schools all within easy reach of the city centre,’ he added.
The company has buy to let property investment opportunities in Bahcesehir with studio, one bedroom and two bedroom apartments with starting prices of £29,000 and a 7% rental guarantee for two years. In addition 70% finance is available and as all purchases are in Sterling, there are no currency fluctuations to consider.