PROPERTY : TURKEY AND ISTANBUL
In 2005 foreign investment into the property market in Turkey was suspended temporarily while the government introduced new legislation to govern and control the amount of foreign ownership permitted and the areas in which international property ownership was allowed. Now that foreign ownership of property in Turkey has once again been permitted and the laws governing and protecting property ownership rights tightened, those overseas investors who wish to buy in Turkey can do so and can take comfort in the fact that their rights are protected. Naturally enough this has reduced some of the risk that foreign investors perceived to exist in Turkey and has led to the country’s property market appealing to a wider audience.
In 2005 Turkey finally began the long process towards EU accession and this immediately led to a surge of international and foreign direct investment particularly into the commercial property market in Istanbul.
As reported on this site, Turkey is also targeting Middle Eastern investment successfully and UAE based investors have committed to the development and construction of two new high rise towers in
Istanbul and the city is a firm favourite with institutional investors seeking commercial property with great potential for rental yield.
IKEA opened a store in Istanbul in 2005 and 2006 will bring Harvey Nichols to this amazing city; per capita the amount of retail space available in Istanbul is far below what other European cities sustain
and this means that there is massive room for expansion in the retail property market – this is fuelling investment and excitement.
In terms of the residential property market in Istanbul – the city is a definite tourist trap because it has so much to offer...as a result the levels of tourism traffic through the city’s airports has led to
cheap flight operators easyJet establishing a daily flight link to the city from the UK and to property investors renovating and purchasing property suitable for short tem letting in the most fashionable and striking areas of the city. Istanbul is also attracting professional migration as many international companies commit to the city following Turkey’s move towards EU accession. A record number of businesses are establishing bases in Istanbul and all require professional staff who in turn require decent accommodation to buy and let. This is fuelling demand, inflating rental yields and pushing up residential and office property prices.
In Istanbul there is a feeling of anticipation and excitement in the air and property investors visiting the city for the first time cannot help but be caught up in the feeling of gold rush fever that exists in
Istanbul’s property sectors. All investors are urged to take their time researching their investment choices before committing to purchase however, and to ensure that the area in which they wish to
buy permits foreign ownership of property.
