Real Estate Market Overview of Istanbul
Considering the current market circumstances, Istanbul real estate is one of the most preferred investment tools around. Real estate investments usually generate revenue consistently with high and low periods, and property in Istanbul is not an exception to this. The possibility of consistent revenue greatly influences the decision making process of the investors. When the focus of investment is on such a popular item like Istanbul real estate, it is very likely to enjoy profit in a significantly shorter period.
Recent Performance of Istanbul as a Market
Istanbul is Turkey’s economic, cultural, and historical heart and its largest city with a population of 13.9 million. Over the last decade, Istanbul’s fame exceeded Turkey’s border and the city became a centre for the business activities of the world’s biggest investors and companies.
In the last decade, Istanbul performed a Gross Domestic Product (GDP) growth of 7.5 per cent per annum and became one of the fastest growing economies in the entire world. According to Foreign Policy and the McKinsey Global Institute, Istanbul will register the 14th-highest absolute GDP growth among world cities by 2025. On-going performance of the city provides investors with every reason to believe this prediction.
Istanbul is responsible for over a quarter of Turkey’s total GDP by 27 per cent. Also, 20 per cent of the total industrial labour force of Turkey resides in Istanbul. The city’s GDP per capita is 70 per cent, and productivity is 50 per cent greater than Turkey’s national average values.
Istanbul, one of the biggest contributors to the value of Turkish passport, is the centre of real estate business in Turkey. The city also enjoys most of the FDI (Foreign Direct Investment) that comes into Turkey. Therefore, Istanbul has the highest rents and the highest prices of Turkey.
Istanbul’s economic growth lures more and more citizens every day. Hence, residential demand in the city, which is already quite high, gets higher gradually. Turkey’s labour force and young population boost single people’s migration into Turkey’s economic centre. As a result, apartments in Istanbul see particularly strong rental demand, making them a favourite for investors.
Demand for Property in Istanbul is Always There
The main reason why investing in real estate in Istanbul is a good idea, is the everlasting demand in real estate in the city. Central Bank of the Republic of Turkey stated a requirement for 5.5 million additional homes in Turkey back in 2015, of which 50 per cent were required in Istanbul. The situation is not very different now. The migration into the metropolis continues and Istanbul stands out as a prime property investment location in the world.
A relatively new Turkish property law that was passed on 3rd of May 2012 allows citizens of 181 countries to buy or rent property in Turkey under their name and ownership as easy as Turkish citizens. With this additional comfort provided by the government, Turkey is an excellent option for a holiday home, for an investment property or for a permanent place to live for foreigners.
Understandably, Istanbul has the largest expat population in Turkey. This is no surprise given it is a business, education and tourism hub. Keeping in line with its growth, its real estate market altered drastically over the last twenty years. The growing expat population is just another indicator that the demand for real estate in Istanbul is there to stay.
The best options for the real-estate investments on the long-run are the regions which are being developed and urbanized recently. Since the population of Istanbul continues to grow, new areas constantly emerge as popular spots. Real-estates such as newly constructed residences at the locations, wherein direct rental incomes can be obtained may also be purchased.
