This is typical of so many investors patiently waiting for property prices to start rising again and missing out on the opportunities already presenting themselves.
Understandably there is still a lot of negative sentiment around when it comes to property investment. People look at countries like Spain and Greece and believe there will be several more years of price falls and little to no capital growth before things finally pick up again.
However when it comes to Turkey, the time to invest has already arrived and one big announcement I read about with interest this week is very likely to see property prices on the European side of Istanbul rise faster than a jet plane at take-off.
This is because the long promised tender process for a third airport in Istanbul is now officially underway and the city can now look forward to the boost it will get from having the world’s largest airport.
Why does having a new airport matter?
In the UK the announcement of a new airport is usually greeted by hoards of demonstrators and complaints about noise. In cities like Istanbul, it means improved accessibility, more tourists and then more competition for property in the best locations within easy reach of the airport terminals
Even in the UK the effects of airports on local property prices are clear, if the recent expansion of Southend airport is anything to go by. Prices in the seaside town rose by nearly 15% in 2012 even as the UK was gripped by recession.
Ambitions for Istanbul stretch far beyond regional expansion, however. Prime Minister Recep Tayyip Erdogan wants to turn Turkey’s largest city into an International transportation hub and he means it. The new airport is set to be the largest in the world when it reaches completion within the next four years.
The airport will have the capacity to handle 90 million passengers a year and eventually feature three runways which will expand that capacity to 150 million.
The new airport will bring major competition for the established leaders in Europe including London Heathrow, Madrid and Charles de Gaulle. Istanbul’s existing airport already saw 44.9 million people pass through in 2012 a jump of 20% on the year before and not too far behind Heathrow’s 69.9 million.
If Istanbul’s airport reaches completion – and an Olympic bid may just speed things up a little – Istanbul will have the potential to rival Paris as a tourist hotspot. Expect property prices to rise fast to reflect this.
What are your thoughts on the new Istanbul airport? Please leave your comments below: