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Industry Experts In Agreement, Istanbul Is A Hot Property Investment

March 21, 2011Article by Ray Withers

Istanbul property is currently one of the hottest investments in Europe, or so the consensus of expert opinion agrees. A couple of months ago the well respected Global Property Guide issued a report titled: Turkey: Europe’s Best Residential Property Investment? A report mainly focussed on Istanbul.

More recently we have CB Richard Ellis commenting on how the Central Eastern European region is the focus of European property investment, of which Turkey is very much apart. Turkey is “on the map” for many investors, especially with the opportunities it presents in hotel development, said CBRE Chief Economist Peter Damesick.

Property Frontiers, winner of Best Large Real Estate Agent in the AIPP awards for the second year in a row, is another advocate of Istanbul property investment. The firm, which has just launched its latest residential offering in the city said in a press release:

“As emerging market specialists, Turkey and Brazil are two of the markets we are keenlyrecommending at the moment. In the case of Turkey, we have long been keen advocates of the Istanbul market, as we believe it offers among the best investment opportunities in Turkey, which in turn offers some of the best investment opportunities to be found in the world that emerged from the ashes of the financial crisis.”

What’s not to like though, from an investment perspective right now, Istanbul covers all the bases.

Demand outstripping supply in rental sector: The Istanbul population is predicted to grow by 2.3 million over the next 12 years, from the current 12.7 million to 15 million. The economy is also growing rapidly, with the Brookings institute measuring Istanbul GDP growth at 7% last year, which, along with a 10% growth in employment saw the research body rank the city the fastest growing in the world. A population growing in number and affluence gives us a positive demand/supply ratio.

Undervalued property: According to the Global Property Guide, property in Istanbul for sale is undervalued. In the aforementioned report the publication measured the average per square meter price in the city as 2,386 Euros, this is compared to 5,483 in Beleaguered Ireland’s capital Dublin, 3,546 in Warsaw, Poland and 3,484 in Bucharest Romania. Undervalued property means strong yields. The Global Property Guide puts Istanbul yields at 6-7 percent, and Property Frontiers are estimating 7% on their latest offering.

Reliable Exit Strategy: Because of banking reforms made in the wake of the 2001 Turkish financial crisis, combined with the immaturity of the mortgage market, the Turkish banking system was barely affected by the financial crisis, and is now one of the strongest and most vibrant in Europe. The mortgage market is growing at around 20% per year according to official figures; this gives investors a reliable exit strategy when they are looking to sell.


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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