Istanbul is one of the largest cities in Europe, and one of the most coveted regions in the world. With a population of 16 million, it makes up around 20% of the country’s total population, and the United Nations predict that it will reach 18 million by 2035.
Its strategic location between Asia and Europe makes Istanbul a magical meeting place between two continents. People from across the globe journey to the city to experience its eclectic culture—not to mention the renowned Turkish cordiality.
According to Mastercard’s Global Destination Cities Index, Istanbul received 14 million visitors in 2019, making it the 8th most-visited city in the world.
Combining the old with the new
Tourists are enticed by Istanbul’s centuries-old architecture and archaeological sites, which still have colourful tales to tell. Formerly known as Constantinople, the city was once the ancient capital of the Roman, Byzantine and Ottoman empires. Its rich history, dating back to the second millennia BC, instils the region with mystery and a magnetism that draws people in from all corners of the modern world.
As a centre for tourism and trade, Istanbul is giving rise to new developments across the city—and transport is emerging as a main theme.
The recently completed Istanbul Airport is one of the largest in the world, with direct flights to 66 countries and all major capitals.
At the end of 2021, Istanbul saw the unveiling of Galataport cruise port, the world’s first underground cruise ship terminal. Set to revolutionise cruise ship tourism from the Mediterranean basin to the Black Sea, the port is expected to welcome 25 million foreign tourists and cruise ship passengers in its first year.
Istanbul tops tables
With an ever-increasing influx of people coming into the city, investors from all over the world are keen to invest in the Istanbul real estate market. Unsurprisingly, demand for rental properties is high, and Turkey’s property market remains red hot.
Due to supply chain issues caused by the pandemic, construction costs continue to climb, leading to limited supply. On top of this, as inflation surpasses an immense 70 per cent, many Turkish citizens are turning to property as an inflation hedge. This is leading to soaring demand across the entire residential market, with luxury property proving extremely popular.
Subsequently, the real estate market in Turkey is growing faster than any country in Europe—and house prices in Istanbul are increasing at an even faster rate than the country’s average. In fact, Istanbul was the city with the highest rate of price growth in the year to Q1 2022, according to Knight Frank’s Global Residential Cities Index, with a nominal growth rate of 122 per cent.
Opportunities for foreign investors
While much of Turkey’s property demand is fuelled by domestic buyers, many international investors are also keen for a stake in the market.
With the Turkish Citizenship by Investment program (also known as Turkey’s Golden Visa program) foreign buyers can acquire a Turkish passport by purchasing real estate worth $400,000.
And the best part? Turkey’s Golden Visa program is unique in that it has no minimum residency requirements. This means that you can secure a Turkish passport within less than two months without ever having visited Turkey.
As a bustling metropolis, historic treasure and renowned tourist destination, the city is a fantastic place to acquire property. And, with Turkey’s red-hot market, now is the perfect time to invest in Istanbul real estate.
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