Property Investment in Istanbul

Bolstered by strong domestic demand, house sales increased by 6.4 percent in May compared to the same month in the previous year, reaching a total of 114,800. Istanbul had the highest share of the increase, with 18.8 percent of total house sales around the country, followed by Ankara with 9.9 percent and İzmir with 5.8 percent.

Forty-five percent of the Seapearl Project, the only premium real estate project near the sea in Istanbul, was recently sold. The first section of the project, which is worth TL 7,200 ($2,570) per square meter, will be submitted to its new owners in July 2017.

The last bridge deck for the İzmit Bay Bridge, which has become the fourth longest suspension bridge with the largest central span in the world, was installed Thursday in a ceremony attended by President Recep Tayyip Erdoğan, Prime Minister Ahmet Davutoğlu, Transportation, Maritime Affairs and Communication Minister Binali Yıldırım and Science, Industry and Technology Minister Fikri Işık.

In his closing speech at the 13th Organization of Islamic Countries (OIC) Summit Conference on Friday, President Recep Tayyip Erdoğan said that Muslims should be able to solve their own problems without resorting to outside assistance. “Why are we expecting others to solve the problems of Muslims? We should be able to solve our own problems. The OIC shall be there for eventual purpose.”

Arban Çitak, the head of French rail transport vehicle producer Alstom’s Turkish unit, said that the company will bid in a tender that Turkey is scheduled to hold in the middle of this year with the purpose of purchasing 80 high-speed trains. The company plans to invest 100 million euros in a facility where it will produce the high-speed vehicles if it wins the tender.

Atatürk Airport, which broke a record with 1,399 departures/landings a day before yesterday broke another record with 1,403 departures/landings yesterday. Passing the former record with 4 planes in 24 hours, 150,148 passengers passed by Atatürk Airport terminals.

A huge underground road tunnel being built underneath the sea in Istanbul is meters from being completed.

Istanbulites are hoping the enormous 14.6-kilometer (9 mile) Eurasia Tunnel Project linking Kazlıçesme on Istanbul’s European side and Göztepe in Asia will reduce the city’s notorious traffic levels.

The project, also known as the Istanbul Strait, could be completed ahead of schedule, Turkey’s deputy minister of Transport, Maritime Affairs and Communication, Yahya Baş, has said.

Speaking at the tunnel’s construction site, Baş said: “The construction period is continuing very successfully. As we are counting the last meters, we will complete the project sooner than expected.”

The project, aiming to reduce congestion and relieve traffic density on the huge suspension bridges which cross the Bosphorus strait, is set to open in 2016.

Cars will pass through the tunnel in 15 minutes and the passage fare will be $4 for each vehicle.

“There are only 780 meters left to dig and complete the tunnel section under the sea” said project engineer Emin Karaman.

Istanbul was picked as the city with most development in the world in last 5 years. According to research “The Business of Cities 2015″ by Jones Lang LaSalle, who provides financial and professional services on real estate, Istanbul, because of its performance since 2010, took first place as the city with most development.

Turkish Airlines’ first quarter 2015 consolidated financial statements were reported to Borsa Istanbul. Compared to the first quarter of 2014, Turkish Airlines sales revenue increased by 6,4 percent, reaching a total of 5 billion 456 million TRY. Turkish Airlines disclosed an adjusted operating loss of 48 million TRY, outperforming the first quarter of 2014 by 75 percent and recorded 373 million TRY net profit during the lowest season of the aviation industry. Active risk management strategies and a balanced debt composition had an impact on these outstanding results.

The Facade Rehabilitation Urban Designs Application Project has been initiated and approved by the Istanbul Metropolitan Municipality City Council to create a modern view along Istanbul’s main arterial roads. The project will contribute to the city’s urban aesthetic and put an end to the visual pollution created by many buildings’ facades.

Tripadvisor, the world’s top travel website, has announced Istanbul as the third-best global destination after the cities of Marrakech, Morocco and Siem Reap, Cambodia. On Tuesday last week, Tripadvisor announced its Travelers’ Choice 2015 awards for destinations on its website. The “Red City” of Marrakech, Morocco’s most popular holiday destination, topped the rankings with its palaces, courtyards, mosques and serene beauty.

Turkey’s gross domestic product (GDP) expanded by 2.6 percent in the final quarter of 2014, resulting in 2.9 percent full-year growth, the Turkish Statistical Institute (TurkStat) said in a statement released yesterday. Turkish economy succeeded in growing continuously for 21 quarters, and the announced growth rate for 2014 was above market expectations, which was around 2.7 percent average.

At 20.09 percent, 2014 experienced the highest increase in real estate prices in Istanbul, according to the January 2015 Turkey composite real estate sale price index of and GYODER. A study for new houses and sublets took place in Adana, Ankara, Antalya, Bursa, Istanbul, İzmir and Kocaeli, the findings of which indicated the real estate price index increased by 0.85 percent when compared to last month and by 16.27 percent when compared to the same term in the previous year.

The Istanbul Chamber of Commerce (İTO) has announced the profiles of foreign capitalized companies that were established in 2014 in Istanbul. Accordingly, new companies with TL 1.22 billion of capital were established in Istanbul by 4,487 foreign partners. Syrian investors had the biggest share: 25.21 percent of foreign investors. In Istanbul, 1,131 Syrians established new firms with TL 85 million in capital. In other words, one out of every four foreign investors was Syrian last year.

Turkey’s property market wasn’t hit as hard as others around the world in 2008 and 2009. Values in some districts of Istanbul dropped by maybe 25% at the height of the downturn (about the same as in Panama.) But in just a year-and-a-half, prices recovered. That rate of appreciation (10% to 15% a year on average) continued through 2014 and is expected to carry on indefinitely.

The new 6.5 km undersea tunnel will reduce travel time between the two sides of Istanbul via metro and highway lines to 14 minutes.
Turkish Prime Minister Ahmet Davutoglu has announced an estimated $3.5 billion mega project for a three-story sub-seatunnel under Istanbul’s Bosphorus Strait which will connect the city’s two sides with one railway and two land routes, cutting travel times to 14 minutes.

Economy Minister Nihat Zeybekci said yesterday that the Kars–Tbilisi–Baku railway line will begin operating this year during his visit to Azerbaijan. Visiting the Azerbaijani capital of Baku for a series of official talks, Economy Minister Nihat Zeybekci met his Azeri counterpart, Shahin Mustafayev at Baku Biznes Center.

“We estimate that the general state budgetary deficit will be 0.8 percent, which is 0.3 point less than targeted,” Finance Minister Mehmet Şimşek said, adding, “With this proportion, Turkey’s budget performed better than 25 out of 28 EU countries.”

Moscow has held onto its title as the billionaire capital of the world. This is the fourth time in the past five years that Russia’s capital stays ahead of New York on top of our list of billionaire haunts – those cities that are the primary homes to the most billionaires. Eighty-four of the world’s richest, worth a total of over $366 billion, call Russia’s most populous city home.

Deloitte, one of the “Big Four” professional services firms, announced that it is increasing the estimate growth rate for Turkey in 2014 to 3.5 percent from the previously announced 2-2.5 percent band.
Deloitte Turkey published the report “Economic Outlook: Under the shadows of Central Banks” which contained numerous forecasts and predictions for the world economy and other evaluations related to economic growth, the current account deficit and inflation rate in Turkey.

Local investors who highly preferred foreign currencies due to the perception of political instability that arose due to the Gezi Park protests in May 2013, the Dec. 17 coup attempt that was orchestrated by followers of the shadowy imam Fethullah Gülen to destabilize Turkey’s economic and political atmosphere, and the March 30 local elections, are now increasingly inclining toward the Turkish lira.

Turkey’s chief economist said on Tuesday that the country’s per capita income now exceeds $19,000 (TL 40,350) based on purchasing power parity, meaning the country has reached 60 percent of the EU and Japanese average levels of prosperity. Deputy Prime Minister Ali Babacan’s comments made during a speech at an iftar dinner (Ramadan fast-breaking meal) organized by Turkey’s Independent Industrialists and Businessmen’s Association in Ankara.

According to data declared by General Directorate of State Airports Authority (DHMI): A record broken with 16.7 million passengers served at airports in Turkey in June. Compared to last Junes total air traffic: Domestic air traffic increased by 7.8% with 65,308, international air traffic increased by 8.7% with 61,093 which equals to increase in total air traffic by 8.2% with 126,401.

Turkey Prime Minister Recep Tayyip Erdoğan attended the opening of the Aviation Repair and Maintenance Center of Türk Hava Yolları Teknik A.Ş. at Sabiha Gökçen Airport in Istanbul. Stating how pleased he was since the $550 million investment was covered by the equity capitals of Turkish Airlines, he suggested at a new initiation that will be started at Sabiha Gökçen.

Export Strategy of Turkey For the Year of 2023

Turkish Exports Strategy for 2023” was initiated by the Ministry of Economy and Turkish Exporters Assembly in 2009. The main purpose of this strategy is to reach 500 billion dollars of exports volume in 2023, the centenary anniversary of the Turkish Republic, with an average of 12% increase in exports annually.

Arab Spring in Turkish Tourism

In recent years, tourists from middle eastern and north African countries have been flocking to Turkey. The number of Arab tourists increased from 687,000 ten years ago to over 4,000,000 (2011), even more in 2012. Arabs come to Turkey all year long( spring, summer, fall, winter) not only for summer-sea purposes.

An Overview of the Financial System

Financial markets (bond and stock markets) and financial intermediaries (banks, insurance companies, pension funds) have the basic function of getting people together by moving funds from those who have surplus funds to those who have a shortage of funds.