Property Frontiers; Istanbul Is One Of World's Top Property Investment Destinations

By Author: David Cox
Total Articles: 10
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Istanbul is almost certainly one of the most talked about cities in the world of international property investment. Not only do almost all the subjects being discussed portray the city in an increasingly positive light, but almost all of them serve to further the belief that Istanbul should definitely be on the shortlists of anyone and everyone who is considering making a property investment in the near future.

Istanbul was ranked fastest growing city in the world in 2010 by research group Brookings Institute. Their study found that Istanbul GDP grew over 7% during the year, and that employment grew by over 10%. This is no mean feat when you consider the fierce competition from cities in China. Of course Brits and people from most countries can buy freely in Istanbul but not in China.

Economic and employment growth are two of three main factors which make Istanbul properties a fantastic investment. The final piece of the puzzle is population growth. Turkey has one of the fastest growing populations in the world and Istanbul has the fastest growing population within Turkey. By 2023 it is estimated that Turkey will ...
... require 500,000 additional homes, 250,000 of these will be needed in Istanbul.

The picture painted here is of a population growing rapidly in number and in affluence, a combination which can only lead to increasing demand for properties to buy and rent, and then increasing demand for bigger and better properties. This makes Istanbul an excellent candidate for residential property investment; buying properties to be let out to tenants on a mid-long term residential basis.

But of course, another huge thing in the pros column for Istanbul property is the price. On a like for like basis Istanbul is one of the cheapest places in the world to buy property. According to research recently carried out by the Global Property Guide, Istanbul properties currently sell for just over 2,300 per square metre, compared to over 5,400 Euros per square meter in Dublin.

And this is all before we cover the exit strategy. According to the Central Bank of Turkey, the Turkish mortgage market grew by 20% in 2010, and 25% growth is being forecast for this year. This means more and more Turks buying homes, which provides an excellent exit strategy, not to mention foreign buyers who will likely remain heavily interested in the Istanbul market for at least 5 years. Istanbul also has a strong tourism market, and many investors buy into holiday properties targeting the holiday lettings market.