Istanbul has been ranked 14th in a recent report by international tax consultancy PwC and the Urban Land Institute that ranks 20 European cities by investment prospects.
This is an impressive six places up from last year’s listings and puts it ahead of London (15th), Edinburgh (18th), Frankfurt (20th), Brussels (21st) and Paris (22nd), amongst others.
Despite the recent political uncertainty that could have potentially deterred investment, these most recent findings suggest that Istanbul‘s young demographic, coupled with the influx of new-build property, will keep its real estate market at the forefront of international investors’ minds.
According to the report, Istanbul has scale on its side, and with a population of 15 million, is the largest city in Emerging Trends Europe’s survey. It also has a young demographic and a real estate stock in need of upgrading. “Investors in Istanbul focus on new-build property because of the often fragmented title of existing buildings,” stated the report. “However, selectively, refurbishments can also provide opportunities. Although office take-up is rising, prices are expected to ‘stay slack’ or fall slightly over 2016.
“Istanbul has a substantial development pipeline which is keeping rents stable. By the second quarter of 2015 there were 1.9 million square metres of space under construction in Istanbul, according to Cushman & Wakefield research, most of it in the CBD and Atasehir, an up-and-coming business and residential suburb in the east of the city.”
Elsewhere, Turkey‘s Prime Minister, Ahmet Davutoğlu, recently expressed his own confidence in the country’s future. Writing for ‘The Wall Street Journal’, he suggested that “Turkey’s economy has become synonymous with stability and success”, and one that will continue to appeal to both domestic and international investors. Looking towards a positive future, he added “the success of the past decade hasn’t weakened our resolve to go even further”.