Istanbul offers great opportunities for European investors, joint report says
Posted by meb at April 18th, 2008
Istanbul continues to offer great opportunities for European investors while cities such as Ankara, Antalya, Gaziantep, İzmir and Kayseri also attract investors’ attention, according to a recent report.
The report, titled “Emerging Trends in Real Estate Europe 2008,” was compiled by the Urban Land Institute (ULI) and PricewaterhouseCoopers (PwC) following a conference of the same name attended by 400 European real estate specialists. Istanbul, a mega city, is described as “The City of Opportunities” by investors, although it ranks second on the list as a result of the rapid growth of the real estate sector in Moscow.
The number of consultants advising investors to purchase property in Istanbul has increased substantially this year compared to 2007, when Istanbul, among 27 cities, ranked first on the list of the property sales for office and industrial investments and second on the list of sales of houses and land. “Istanbul has become the India of Europe with its overpopulation, increasing national income and reasonable economic conditions,” one of the participants said at the conference. Some participants noted that other cities in Turkey also appealed to them. Antalya, in the South, İzmir, in the West, Kayseri and Ankara, in Central Anatolia, and Gaziantep, in the Southeast, have already entered the agendas of European investors, according to the report.
European investors consider purchases of office space in Istanbul as the most profitable investment. The report revealed that 85 percent of conference participants recommended office purchases while 58 percent recommended home purchases. The European market has become more interdependent, in that the economic development in one region directly affects that in another region.
The factors, which are expected to affect the real estate sector most in the future, were listed as the harsh bank loan conditions, an increase in energy costs and the stagnation within the real estate sector. Moreover, the report revealed that European investments are shifting to the Middle East and Africa. “The Turkish real estate sector and Istanbul have turned into an important global center, which attracts attention from both national and international investors in terms of investment opportunities and growth potential. However, the law that bars foreign nationals residing in Turkey from buying property has led to anxiety, suspense and ambiguity. Unless the necessary amendments are made immediately, the image of the Turkish real estate sector, which has been on the rise for the last few years, may be harmed and international investments may be directed to other countries. Moreover, it is obvious that the Turkish real estate sector has a high potential, especially when we consider that the highest demand for new construction projects comes from low and middle-income groups. It should be appraised well,” said Haluk Sur, Turkey chairman of ULI.
Source: turkish Daily News
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