The Best Places To Profit From Istanbul Property

Istanbul Property DevelopmentIstanbul is one of my favourite cities, a sprawling metropolis of culture sandwiched between East and West with a property market that is as exciting as the many stories I read about it as a youngster.

In some ways Istanbul or Constantinople as it used to be called can be considered the final frontier in Europe, literally the end of the line for the mythical Orient Express famed in Agatha Christie’s crime novel.

For property investors on the other hand, the mystery lies in unravelling the opportunities to profit from property within the city’s boundaries.

Istanbul is a city for the explorer which is why I’ll make the job of finding the best places to invest easy and reveal where I think the best opportunities to invest in Istanbul are. In a city with a population of 13 million you might expect some diversity In Istanbul’s property market and you would be right.

I like to keep things simple –  so firstly I can tell you that this market can be broadly divided into middle class, working class up-and-coming areas and university districts.

Nothing unusual in that you might think, just like any other city however this is Istanbul which has been one of the best performing property markets in 2011 and is set to continue growing in 2012.

So where should you invest for profit in Istanbul?

A stroll around Beylikduzu reveals a district alive with activity and a construction boom that is frantically trying to satisfy demand for good quality properties suitable for a highly educated, though perhaps less demanding population than other Istanbul districts.

This is where working class meets middle class meets intellectuals and this is always a recipe for growth and development as we saw to spectacular effect in cities here in the UK.

Jobs are plentiful with the bustling Mercedes Benz bus factory keeping many of the district’s inhabitants busy and there are the three universities with a student population of 14,000 guaranteeing huge demand for available living space every year.

The young, dynamic district of Beylikduzu has generated annual growth of 15% which puts it firmly at the top of our list but there are other hidden gems to consider including property in Yesiyurt.

Yesilyurt means ‘green homeland’, add in the gentle lapping of the Marmara sea and you have the perfect recipe for middle class demand for property. The population in this district are affluent and living mainly in low rise houses and apartments with sea views (if they can get hold of them).

This district is also home to the city’s air force academy and with yields approaching 8%, you are unlikely to be disappointed by the rental returns you can get on property.

Next up is Esenyurt another up and coming area on the European side of Istanbul with prices as low as £25,000 for a luxury studio apartment this is the equivalent of a reasonably priced Ford Mondeo.

As well as having the cheapest entry point of our Istanbul investment locations, a journey to the nearby airport from this developing suburban zone of Istanbul will take you just 15 minutes by car.

Esenyurt – the classic up and coming district

The district is also close to the city centre and university campuses and close to the booming Beylikduzu district. Town planners are in the process of creating concepts for cutting edge mixed use developments modelled on those being created elsewhere in the city.

Many of those are reaching completion and should see this make property in Esenyurt high on investors’ lists 2012.

Investing in the districts mentioned should generate a handsome return on your investment but if you prefer something closer to the bustling centre of the world’s 20th largest city, restrictions have recently been lifted on foreign investment in the historic, cosmopolitan district of Beyoglu.

Up to 9% yields close to the historic centre of Istanbul

Buy property here and you’ll be within walking distance of Taksim Square (The Trafalgar Square of Istanbul) and enjoy rental yields approaching 9% for smaller apartments, though it has to be said, apartments are expensive here and yields can fall dramatically for larger apartments.

All things considered Istanbul offers and excellent alternative to property in other major cities in Europe with prices at more realistic levels. So if you’re a property investor who hasn’t invested in Istanbul yet, then why not?

Click the link to see properties for sale in Istanbul: Turkey Properties

Which Istanbul hotspot are you considering as an investment? Please leave your comments below.

Kind regards

Loxley McKenzie

Managing Director

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