Well, why? Before you start, yes I am biased but I dare anyone who can say they aren’t, or even anyone biased against to get into it with me on this point… Come on – fire some reasons not to at me in the comments…
I believe that buying a property in Istanbul — and it goes without saying that I mean a quality property at a good price after conducting solid due-diligence — can only possibly be a good mid-long term investment. It just can’t go wrong for me and here’s why.
Low Property Prices vs Cynicism
You can buy a top quality apartment in a residential village or a residential apartment block from as little as £40k from renowned UK based agent Spot Blue. The firm is the only overseas property agent I know of that carries out due diligence on developers before working with them, and not gimmicky we-check-the-developeregence, proper cold hard checks at the land registry and chambers of commerce.
Now, the financial crisis has caused so much cynism about overseas property investment, that some people could hear enough positive economic data on Istanbul to make their ears bleed Turkish lira and they still wouldn’t see deals like the one above as a good investment, they would be waiting for the catch.
I am partially one of them. You are always thinking, is it a higher price for foreigners, or am I going to be relying on foreigners to resell it. But in Istanbul I think we need to forget about the mountain of data showing growing economy, rising employment, a growing mortgage market and rising rents, and simplify it.
A Simple Case of Supply and Demand
Right now dozens of hotels, retail giants, airlines, telecommunications companies and more are fighting for their place at the hub or the fastest growing economy in Europe.
For example the latest CBRE report into global shopping centre development reads: Istanbul was the most active European development market last year with the opening of seven new centres, including Marmara Park (94,000 m²) and Trump Towers (41,000 m²). Istanbul will be the most active development market in coming years with 32 centres currently under construction.
Besides that the government has just announced that it will start building a new $10 billion, six runway airport for 150 million passengers this year and last year both British Telecom and Vodafone, two giants of international business announced plans to make Istanbul a regional hub.
So without mentioning one economic stat that is thousands of new jobs and thousands of staff shipped in to run new divisions. Istanbul is a great city with a great many properties, but the number of units suitable for the needs of the modern consumer is nowhere near as large, and neither is the space available for building new units. As they say in the vernacular – you do the math.