Why Istanbul Attracts International Buyers
Recent figures released by the Turkish Statistics Institute (TurkStat) have revealed that there has been a huge surge in property sales to foreign buyers in the past twelve months in Istanbul – but why such a momentous increase?
Comparing March 2015 figures with those of the same month in 2014 shows an impressive 14.6% growth in the numbers of foreigners buying properties in Turkey’s largest city, with these figures today forming 34% of all property sales in the city. Savvy investors are recognising that now is the ideal time to get on the Istanbul property ladder, with the city maintaining its top spot on the list of to-purchase Turkish destinations, taking close to 19% of all of the property transactions in the country.
And it is not just overseas buyers that are increasingly looking to Istanbul for a property purchase, the city is today a hugely popular location for transactions of this nature in general terms, registering a massive increase of 32.4% property sales in March this year compared to 2014 statistics, according to TurkStat.
Adil Yaman, Director of Universal21, the leading property agency in South-West Istanbul, notes some of the reasons why,
“With an expanding infrastructure, new ground-breaking projects under development and historic and cultural charm that is second to none, combined with a mesmerising feeling of east meeting west, Istanbul has much to offer both the short-term visitor and the longer-term property purchaser. There is a really positive, exciting vibe of growth and evolution in the city today, drawing international attentions and increasingly so.”
It is hard to ignore the national context of stand-out property price growth too, which has earned Turkey worldwide recognition. The Knight Frank Global House Price Index for Q4 2014 placed the nation second only to Ireland in terms of its house price growth, an increase of 16.2% growth year-on-year and an impressive 10.3% change in just 6 months. Making it clear why it is gaining so much attention from those around the world looking to make a shrewd property purchase, Turkey is relishing its place as the country with the second highest worldwide change in the last twelve months.
A noticeable increase by any standards but what is also helping to draw so many from overseas to make a purchase in Turkey is the outstanding economic growth the country is also witnessing. The European Commission, in releasing its Spring Economic Forecast this month predicted that Turkey would register a 0.3% increase in GDP this year, placing it ahead of 24 EU member states. And this is not set to be a flash in the pan. The Forecast also flagged an additional 0.5% growth in GDP next year, taking figures to 3.7% for 2016, making this another point of consideration for longer-term investors.
Alongside this, Turkish tourism is booming – especially in Istanbul. The opening quarter of this year saw a growth of 1.3% in tourism revenue (taking it to a total of $4.87 billion), generated from an increase of 5.5% in visitors to the country (taking Turkish tourists to 5.3 million in Q1 2015). In Istanbul in particular, Turkey’s top to-visit destination, there was an above the curve increase of 8.99% in the numbers of foreign visitors arriving, according to the Ministry of Culture and Tourism.
For those looking to purchase a property that can be rented to these visitors, such investors are also in luck. Taking 49.88% of Turkey’s visiting population, Istanbul registers far more visitors than its closest rival of Antalya with 15.89%, according to the Tourism Ministry. And there are many property options that are perfect created to suit this growing demand. Diamond Residence from Universal21, for example, comprises a range of 148 beautifully designed apartments of one and two bedrooms situated in a quiet relaxed area of Old Beylikdüzü, Istanbul’s upmarket neighbourhood.
Just a 20 minute drive from the main Ataturk airport, a short drive from the beach and a 10 minute walk from the area’s major shopping centre, Marmara Park, Diamond Residence also offers an array of excellent and functional facilities including 24 hour security, a Vitamin Bar, fitness centre, indoor swimming pool, children’s games room and cinema room.
One bed apartments are priced from £57,000 / €78,000, with two bed apartments priced from £98,000 / €132,000.