Why Wait Another 5 Years For Growth? Try Istanbul Property Instead

Cavea Evleri As most of Europe faces a minimum five years wait for growth, celebrities like Jennifer Lopez are turning their attention to Istanbul.  Lopez once called herself ‘Jenny from the block’ and it might soon be ‘Jenny from the Istanbul block’ if she decides to go ahead and invest in an iconic development overlooking the Bosphorus as has just been reported in the Turkish media.

While the media are saying it is because she has ‘fallen in love with the city’, it is also likely that she wants a piece of the action in one of the world’s fastest growing property markets. If the decision is at least partly based on investment potential, the r&b singer will not be waiting long for a return on her investment.

If she had opted for most major cities in the rest of Europe, like the UK for example, she might be waiting another five years before growth resumes. So like any canny property investor, Lopez knows a thing or two about making money.

Clever property investors who have already bought property in Turkey this year will also have made lot from very little if they had invested in Istanbul as prices have risen more than 14% year- on- year.

According to reports the pop star is looking at the Metropol Istanbul, a 700,000 cubic metre development which includes a 250-metre tower which promises to be one of the highest in Europe.

This latest iconic development is likely to add more fuel the immediate micro-market within the financial district of Istanbul. The bustling centre is the engine room for growth and as demand for property continues to outpace supply, the ripple effect is spreading further out across the city.

The potential of Istanbul certainly hasn’t gone unnoticed, even in Lopez’s home country. This month the Wall Street Journal reported that land and house prices in a north western Istanbul, which is close to the site of a planned third airport, are climbing sharply.

The airport is expected to be built in the districts of Eyup and Arnavutkoy according to the Hurriyet Daily News.

Data from real estate analysts Reidin shows that the average house price per square-meter in Eyup has now reached 1,567 Turkish Liras, which represents a 16% year-on-year increase in property prices.

This was modest compared to Arnavutkoy where the average house price per square meter has increased 21.27% to 1,015 Turkish Liras since last year.

So as property in Europe continues to be bogged down by the quicksand of low economic growth and rising unemployment, it is worth considering that Istanbul property don’t cost a thing if you are in a position to take advantage of high rental yields and strong capital growth while we wait patiently for recovery in Western Europe.

What are your thoughts on investing in European property next year? Please leave your comments below.

Kind Regards

Brett Tudor
Property Expert

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Categories: Property Invest / Turkey Property


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