Istanbul is the hardest place in Turkey to write an information page on. This is because, while all the other markets we operate in are almost solely the foray of holiday home buyers or holiday home investors, but not Istanbul. Istanbul property has near-equal appeal for holiday home buyers as it does for investors.
Istanbul Investment Property
Turkey has one of the fastest growing populations in Europe and within that Istanbul has the fastest growing population in Turkey. On top of that Turkey is also the fastest growing economy in Europe (official data from 2011 as a whole), so you have a population growing rapidly in numbers and affluence. At the same time you have growing consumer credit, with mortgages growing at 25% per year according to the Central Bank.
All this is fueling incredible demand for property in Istanbul, demand which has seen Istanbul ranked the number one city in Europe for property investment for the last 2 years in the Price water house Coopers Emerging Trends in European Real Estate report. And demand that developers say they can’t build fast enough to keep up with.
Investors also see Istanbul as a good opportunity because property is much cheaper than other major cities across Europe. According to a recent Global Property Guide report, Istanbul property prices are around 2,386 euros per sqm, compared to 3,484 euros in Romania for example. These prices are quite dated now, but what we also know is that Turkish property prices are growing at about 6% per year, which is around the rate of inflation, which is a very sustainable growth rate.
According to GPG at this level, Istanbul property is undervalued, which means strong rental yields and solid capital growth as well.
Istanbul Holiday Homes
Istanbul is one of the most vibrant and culturally diverse cities in the world, yet it is also extremely cultured and literally full of history.
There are dozens of museums and art galleries, as well as plenty of shops and restaurants and bars and clubs, many of which light up for the night, for Istanbul also has a fantastic nightlife. And as if that weren’t enough, Istanbul also has several fantastic beaches on its not one but two coasts, one to the Sea of Marmara and one to the Black Sea.
If Turkish tourist towns tend to offer something for everyone, then Istanbul offers loads of things for everyone. It is a top flight European city, but where most people can still afford to buy property, although this won’t always be true. This is why those wanting to buy a holiday home in Istanbul are acting now rather than later.