Real Estate in Istanbul

House sales in Turkey surged 17.8 percent in September, according to data released by the Turkish Statistical Institute Monday.

House sales soared 17.8 percent year-on-year in September to reach 108,918 units sold.

Mortgaged house sales throughout Turkey totaled 4,083 units, up 46.7 percent year-on-year, indicating the fact that more buyers preferred to purchase a home though home loans due to attractive interest rates.

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 sales and construction work of the Seapearl Ataköy project have drawn attention due to its new commercial movie. The TL 2.7 billion project has two sections. The first section of the project is built on 217,000 square meters, has a 6,185 square meter lake, a 33,000 square meter field and walking paths.

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.

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.

The historical Harem coach station on Istanbul’s Asian side, which was built in 1970 and served as main hub to bus routes for Anatolia, will be removed and relocated to Ataşehir district by 2017.

According to Burçin Göktan’s article published in Akşam daily, the new coach station will be able to handle 10,000 buses and 250,000 passengers on a daily basis.

The drastically increasing demand for rental real estate stemming from urban transformation and increased population with Syrians who fled to Istanbul to survive has caused rent hike in the megacity
Istanbul Realtors Chamber President Nizamettin Aşa believes that prices of rental houses in some districts of Istanbul have increased in the last six months due to urban transformation and Syrian refugees. “Because of the density in some districts, currently you cannot rent a house for TL 1,500 which you could previously rent for TL 1,000,” said Aşa.

The Turkish real estate sector, offering ever-greater opportunities for investors every year, has come to prominence especially in the last decade. Although with the recent economic crisis and the global economic recession the European and US real estate markets have been negatively affected, the real estate market in Turkey is still promising. While the reduction in demand and a downward trend in house prices have been observed all over Europe, according to TurkStat statistics the number of apartment units sold in Turkey in the second quarter of 2011 increased by 18 percent compared with the same period of 2010, which shows that the country has huge growth potential in the real estate sector.

Focusing on luxury housing and real estate projects, Turkey has now set its eyes on wealthy European countries.
Turkey has stated that it is vying for the USD 50 billion that Norway plans to channel into global realty markets. In this regard, a delegation, including Ahmet Haluk Karabel, President of the Turkish Housing Development Administration (TOKI), held a visit to Norway in coordination with the Prime Ministry Investment Support and Promotion Agency of Turkey (ISPAT). In his assessments on the issue, TOKI President Karabel said the amendment made to the Law on Land Registry in 2012 has, to a great extent, facilitated the acquisition of real estate by foreigners in Turkey. During the meeting with the delegations, Karabel also noted that TOKI, as the sole government institution specializing in housing projects, could assist the Norwegian investors and offer guidance to them.

After yesterday’s competitive bidding, The Cengiz-Kolin-Limak-Mapa-Kalyon Consortium, a joint venture of Turkish companies, has won a tender for the third airport in Istanbul, promising to pay the government 26.1 billion euros (including VAT) for 25 years starting from 2017.

New legislation passed to allow foreigners for 1 year Turkish visa, if they buy a property in Turkey.

A foreigner was able to get only 3-month-visa whether or not he/she has a property in Turkey. After the new legislation, foreigners will get 1-year-Turkish visa if they own a property in Turkey.

It is expected to increase foreign demand to Turkish real estates that the market has already huge foreign demand.

Istanbul is the eleventh most attractive location for international retailers in Europe.

Turkey is the seventh largest organised retail market in Europe, with a total leasable area of 8.3 million sq m across 332 shopping centers. Approximately 2.6 million sqm of leasable space is currently under construction, with Istanbul accounting for almost half of this total.

PwC and Urban Land Institute picked Istanbul as top city for Future Development Opportunities in Europe.

According to the report, Istanbul had the fourth place in the safe haven list of existing investments. Istanbul had number 1 ranking in the same category last year.

Istanbul has also the second place for new real estate investments compared the first place in 2012.

Istanbul is not only one of the largest and most populated metropolitan cities in the world but also one of the most occupied cities. 47% of its total land is forested land and the rest is highly occupied by buildings. Considering, from one end to the other end, the city is 130 km-long, it is easier to imagine the variety of the city.