Posted on 04 March 2013
For those of you who have been living under a rock, Istanbul has been ranked the top city in Europe for commercial property investment for the last 3 years running in PricewaterhouseCooper’s report Emerging Trends in European Real Estate in conjunction with the Urban Land Institute. That is to say that in each of the last 3 years Turkey has been first in at least one of the 3 ranking classifications: new property acquisitions, development prospects and existing property performance.
Last year was the city’s best performance as it was ranked first for development prospects, new acquisitions and existing performance. Unfortunately when you hit the absolute top of a chart you can only go one way, and that is where Istanbul has gone this year, but it has still been ranked as one of Europe’s top investment locations and that is now 4 years running.
According to the leading investors surveyed for the Emerging Trends in European Real Estate 2013 Istanbul is the number one city for development prospects this year, and the second-top city for new acquisitions. This is the 3 year that Turkey has finished first for development prospects and the 3rd year it has been in the top-2 for acquisitions (two of which it has been 1st). Thus, we can forgive its slipping into 4th for existing property performance to a certain extent.
According to the investors Istanbul is particularly attractive because of its favourable demographics, with half of Turkey’s 79 million population being under the age of 29. According to the report foreign investors put 2.6 billion USD into real estate last year, an increase of 31% over 2011.