Since the downturn struck I could count the number of times the Guardian has covered Turkish property, in the mainstream sections anyway, but we have a cracker in today’s.
After winning for the last 2 years on the trot, Istanbul has once again be named the property investment hotspot of Europe by PricewaterhouseCoopers, in its emerging trends in European Real Estate report for 2012. But this year Istanbul has won with a clean sweep.
The PWC report asks respondents (mainly institutional investors and other at the top of the European real estate food chain) to rate cities in three separate categories: existing property performance, acquisitions, and development opportunities. Last year Istanbul was ranked number one for acquisitions and development opportunities, but beaten by Munich on the performance of existing properties.
In the breakdown PWC named the retail sector as really whetting investors’ appetites, not least because of the 15% growth in consumer spending last year but also because “it’s where international brands want to be”, the report said. However most of the other sectors, including the hotel and apartment sectors weren’t far behind.
A detailed table shows that the retail sector was recommended as the best for investment by 34 respondents, followed by 26 for the office sector and 20 for both the apartment and hotel sectors. Just 8 respondents said the industrial sector was best.
Of course, PWC is focussed on the commercial property market, but you will struggle to find an example of a commercial property market doing well, that isn’t breeding a good performance in the residential sector. Strong commercial demand means businesses doing well, which means more employment and better wages, which increases residential demand. Of course, with its rising population and strong economic growth residential demand in Istanbul is already known to be high anyway. Keep up the good work.