Turkey’s proposition to foreign investors received a shot in the arm this week after the first foreign company committed to invest in a scheme that replaces unsafe residential houses in the country’s earthquake zones.
German property investment group Stern Immobilien has entered into a joint partnership with Turkish construction company Vartas Yapi to build 3,000 houses in the Fikirtepe neighbourhood in Istanbul’s popular Kadikoy district, on the city’s European side. The centre of Kadıköy is a transport hub for people commuting between the Asian and European sides of Istanbul across the Bosphorus.
The 300million Turkish lira project will be equally financed by both partners, making the German partner the first foreign company to invest in Turkey’s Urban Transformation project.
“We have confidence in Turkey’s consistent growth,” said Stern’s Founder-Partner Hans Kilger. “Istanbul is the most promising real estate market in Europe.” Kilger added that his company was also looking into investment opportunities in other parts of Turkey.
The Urban Transformation project is predicted to generate around $500billion of investment within the next decade, accounting for the re-construction of around seven million homes throughout Turkey, spread across 35 cities.
The scheme was introduced in recognition of the prevalence of old and damaged buildings that are in need of re-building – the benefits will not only mean safety for residents, but the opportunity to make more modern and comfortable living environments for Turkish citizens in suburban areas. Another one of Istanbul’s main urban transformation projects is in the Kucukcekmece district, also on the European side.
Contact Spot Blue for more information on buying property in Istanbul and in popular Turkish resorts: www.spotblue.com, +44 (0) 20 8339 6036.