Located at the very point where Asia meets Europe, Istanbul is a bustling city with a wealth of history and culture. Historically the leading Turkish destination for domestic sales, the city is seeing a steep rise in overseas investment and has overtaken coastal locations for foreign buyers.
Thanks to a steep drop in the currency value in 2018, combined with huge predictions for economic growth, Istanbul offers a fantastic opportunity for those wishing to invest in a vibrant capital, at prices not found elsewhere.
Historically, Istanbul has been the centre of the country’s economic power thanks to its location as an international junction of land and sea trade routes and is the export and import gate of Turkey. Exports from Istanbul make up 46% of Turkey’s total, imports into Istanbul make up 40% of Turkey’s total.
In 2018, the lira fell by almost 40%, offering overseas investors a wealth of opportunity to enter the market at a very competitive rate. While the currency is now on an upward trajectory, there are still a wealth of opportunities for investors.
As Turkey’s financial hub, Istanbul contributes to around 39% of Turkey’s GDP, and has the highest average household income across the country.
Turkey is expected to surpass Germany, Russia and Japan to become the first largest economy in the world by 2030, according to Standard Chartered Bank’s long-term forecasts.
Thanks to Istanbul’s positioning as the gateway between Asia and Europe, it’s no surprise that the city is a major transport and export hub.
The city is about to open one of the largest airports in the world. With a total project area of 76.5million square meters, it will host the world’s largest terminal, and is likely to establish itself as a major travel hub thanks to it’s East meets West location. Aviation demand in Turkey is growing rapidly and long-distance passenger demand which could use Istanbul as a transfer airport is also increasing.
Regeneration in the city has seen great opportunity for investors, as formerly run-down areas have seen transformation by way of urban development, located close to the city centre with excellent travel links and the building of quality schools, hospitals and leisure facilities.
Turkey’s strategic location also makes it an important location for the expansion of China’s Belt and Road initiative, connecting Asia into Europe via various trade routes.
Property Investment Istanbul
Istanbul has a young population – with a median age of 30 it’s home to one of the most youthful populations in Europe, and we are starting to see demand from the city’s young professionals who wish to live in homes that offer higher specification and are close to work. This offers investors domestic letting opportunities not found elsewhere in Turkey.
The attractive property prices, combined with a fantastic currency opportunity offers those wishing to invest in Istanbul’s property market a unique window to add to their portfolio in a market with great potential for growth, with predictions for property price growth of up to 30% over the next 5 years.
A recent measure to lower the threshold for gaining Turkish citizenship from $1million to $250,000 is also extremely attractive to many.
Thanks to Istanbul’s key location, it’s an attractive city to investors across the world, offering true liquidity thanks to a strong global demand.