August 3, 2007
Turkish Real Estate Prices Rising to EU Levels
Istanbul was recently named one of the most expensive metropolitan areas in Europe. As a result, Turkey’s property prices are consistently increasing.
According to an annual report by PricewaterhouseCoopers (PwC) and the Urban Land Institute (ULI), the Turkish city is more expensive than Madrid, Stockholm and Rome. An input from 400 real estate specialists claims that the most populous city of Turkey is ranked the highest for city development prospects. “The market still needs many developers rather than pure investors… real estate sectors are now in a learning curve,” claims a respondent. Another comment says that Istanbul will be the star of the next decade.
Although Istanbul is keeping up with Europe’s property prices, it has a long way to go. Taking the lead is London with €13,000 per square meter, followed by Paris and Milan with €8,500 and €6,500, respectively.
Several major urbanization projects are underway in the city. These developments are headed by many of the UAE’s largest developers, including Emaar. Also, large agents like Parador Properties started selling in Turkey last year. To open the market to more foreign investors, a new mortgage law is presently in the works. These buyers have had to release equity in their homes to purchase or use savings. This new mortgage law may push up prices.
Another factor that may increase the cost of real estate is the refurbishment of existing homes as part of big urban redevelopment initiatives. A major urban transformation project was lately made known in the north of the TEM Highway by the Housing Development Administration of Turkey (TOKİ), the Istanbul Metropolitan Municipality, and the Küçükçekmece Municipality of Istanbul. Between 2,000 to 5,000 model homes are expected to be built in the Bezirganbahçe district to transform the 1,800 shanty houses situated in the areas of Tepeüstü and Ayazma. According to Küçükçekmece Mayor Aziz Yeniay, the real estate prices could go up ‘5-6 fold in the region’.
To create a new ‘city’ of 750,000 people, the first phase of 150,000 planned houses in Kayabaşı will start this year. This region was a backup area for housing in the city of Istanbul because of the threats of earthquakes.
Posted on: Turkey
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