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A key asset class in a proven market: Istanbul student accommodation welcomed by investors

October 18, 2011Article by Ray Withers

Over the past year, two property sectors have upheld an exceptionally strong position seeing considerable growth in student accommodation and the Turkish property market. With this in mind, purpose built student accommodation in Istanbul is currently in high demand providing the perfect opportunity for savvy investors to own a key asset class in a proven market.

Ray Withers, Director of Turkish investment expert’s Property Frontiers comments,

“Combining the proven key market fundamentals of Istanbul with an asset class deemed by Knight Frank to be a “critical component of a balanced investment portfolio”, the two sectors combined together make absolute sense”.

With the ongoing success of Turkey’s economy and predictions that the nation will be the 9th largest economy in the world by 2050, Turkey affords 154 universities, four of which have secured a place in the prestigious Times Higher Education World University Rankings (2011-12). While Turkey has as a total student population of 3.78 million, Istanbul represents the educational hub of the nation boasting 36 universities and a student population of 298,000.

Currently, Turkish universities accommodate students from around 147 countries, including the UK, seeing a rise of 59% over the past 5 years and with the international increase in enrolment combined with an 8% annual student growth rate, enormous pressure has been placed on existing student accommodation stock.

Withers explains,

“Student accommodation traditionally supplied by University Dormitories and Government Funded Dormitories account for only 12.7% of demand and has resulted in a shortfall for around 254,000 students. Our new student accommodation development in Istanbul, HAN Florya, provides an optimum opportunity to capitalise on the growing demand for student housing.”

With a huge undersupply of student accommodation mismatched with growing demand, students are transforming the rental market in Turkey offering excellent returns potential for investors.

Located in the booming western suburb of Küçükçekmece, home to some 600,000 people, HAN Florya occupies a prime location close by to three universities in Istanbul with a combined population of 19,000 students and less than 2 minutes’ walk from the Metro bus station enabling easy and quick access to the city centre.

With only 38 student rooms available on a leasehold basis, HAN Florya has been explicitly designed to cater for the market requirement of separate male and female accommodation. Comprising two blocks (one for male, the other for female residents) this attractive student residence offers a secure high yielding low level investment starting at £14,965 with no buying, ongoing maintenance or management costs while investors can enjoy a guaranteed NET yield of 10% per annum.

For more information on investing in the key asset class of HAN Florya in Istanbul please contact the experts Property Frontiers today on +44 (0) 1865 202 700.

Author

Ray Withers

Ray has over 17 years’ experience in the international property market and bought his own first international property investment back in 2002. Aside from running Property Frontiers, Ray has been involved in residential, hotel, student and commercial property investment and development in both the UK and overseas and co-wrote "Where to Buy Property Abroad - An Investor's Guide". As Founder and Trustee of the Frontiers Foundation, Ray is directly involved with many of its projects to ensure they have a direct and tangible impact in individual communities across the globe. He is passionate about property, travelling, scouting out new opportunities and finding time to spend with his young family.
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