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International property investors attracted to Istanbul

Wednesday 29th June 2016

Written by Roy Weatherby, The Overseas Investor

Istanbul is a major cultural and financial centre, playing a role in both Europe and Asia, and is one of the most important cities in Turkey. 
It is also a city which has been proving decidedly and increasingly popular with property investors over recent years, and its appeal to international buyers seems especially strong at present. 
Last year, 7,493 properties in Istanbul were sold to overseas buyers – more than in any other part of Turkey.
What are the attractions of Istanbul?
There are a number of attractions which currently serve to persuade foreign investors to buy properties in the city in such large numbers. 
Capital growth is one of its strong points; it is one of Europe's leading cities in this field. 
Rental yields are also attractive – generally in the 6-10% range. 
Despite these attractive returns, however, Istanbul remains a much more affordable place to buy property than many other, comparable European cities.
Istanbul is also a city that is well-poised for future growth. It benefits from excellent international connections, and is becoming increasingly popular as both a holiday destination and a place for multinational companies to do business. 
It is also currently undergoing a major programme of government investment in infrastructure, transport provision, and housing. With so much potential in a city that is already economically thriving, accounting for around 7.5% of Turkey's GDP, it is not hard to see why Istanbul has caught the attention of international property buyers. 
On top of this, Istanbul is experiencing rapid and pronounced population growth, which is expected to continue in the coming years. 
The supply of residential property stock is already lacking, and with rapid development still struggling to close the gap this situation seems set to continue if not increase over the next few years.
Key property investment hotspots
The main districts of central Istanbul represent many of the areas at the forefront of the city's property market. Other prime locations include popular residential areas such as Macka, Sisli, Mecidiyekoy, and Beyoglu. 
For both residential and commercial investments, Istanbul's established prime districts continue to feature decidedly among the districts that lead the property market, and are therefore among the most popular with investors.
It is not just the established property hotspots of Istanbul that are proving attractive to international investors, however. With the city currently going through a major and fast-moving period of development, a number of up-and-coming areas are also proving popular with investors. 
This includes many growing areas on the outskirts of the city such as Bahcesehir and Beylikduzu, where there are plenty of off-plan opportunities and widespread expectations of fast capital growth as development continues. 
While established districts are seen as safer and buying off-plan also comes with some added risks, this is definitely an exciting situation for primarily yield-seeking investors and these areas carry a lot of profit potential as the city continues to grow.
For more information on investing in Istanbul, please contact Hopwood House.

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