Forbes’ annual “rich list” was released a couple of weeks ago and an analysis by the magazine showed that Turkey’s wealthiest are investing in Turkish real estate, with 85 of the top 100 richest Turks holding significant stakes in property. Turkey’s economy has remained strong in the face of global turmoil, making it a natural choice for safe and profitable investment. We outline the top spots for investing in Turkish real estate, and what makes them stand out from the crowd.
Turkish property & economy news
Turkish women are making headlines around the world with their social media-led campaigns urging for equality and an end to women-directed violence. Educational reforms have already begun to make changes in a country where illiteracy rates are five times higher for men than women, but the women who are now finding their voices are asking for change - and fast.
Investment in Turkey remains high, with foreign interest focussing on pensions, mining, automotive, dairy and shopping centres. New laws introduced over the past two decades have ensured investing in Turkey has not only become easier, but that it’s now immensely profitable. Turkey is now among the top vehicle manufacturers in Europe, and only Russia has more shopping malls. The dairy industry is tipped to grow exponentially, as is the pension sector, after measures introduced in 2013 transformed the country’s pension schemes.
The scope for renewable energy sources like geothermal, wind and hydropower in Turkey is huge, and so far relatively untapped. However, this is set to change with an ambitious plan concocted by the Turkish Energy Ministry and the European Bank for Reconstruction and Development aims to have a third of Turkey's energy sourced from renewables by 2023. Investment is being poured into infrastructure and development, which will allow Turkey to transform its energy sector while aligning itself with EU protocol.
Branded residential projects are being built in almost every district of Istanbul. At the expensive end they’re creating revenue for the city as investment properties, and at the lower end they’re providing much-needed accommodation for the ever-growing city, accommodation that’s regulated and soundly built. A study conducted by EVA Real Estate Consultancy shows that branded residential projects are on the rise, with new developments being built in almost every corner of the city.
Yesterday Forbes Magazine released its annual billionaire list, profiling the 1826 wealthiest people over 70 countries. As well as containing a few familiar faces (hello again, Bill Gates) it also contained 32 Turks. From the former Russian secret service agent-turned-tycoon to the rocky fortunes of the yogurt king of America, we’ve profiled the top Turkish billionaires who are making their mark at home and around the world.
A group of Gulf investors has just bought a stake in Turkey’s largest online retailer, Hepsiburada, in a 350 million Euro deal that is set to propel the company - and the country - into a new era of online shopping. Half of Turkey’s population is under 30, and they are becoming increasingly educated and online-savvy, a fact that hasn’t escaped investors looking to capitalise on this emerging demographic. Hepsiburada.com receives 14 million unique visitors a month and is aiming to become the next Amazon.com - a goal that looks achievable with the might of Abraaj’s investment behind it.
Three Istanbul streets have made the top 10 ranking for rental increases in Europe, according to a real estate consultancy. Istiklal, Bagdat and Abdi Ipekci avenues are three arteries that make up Istanbul’s beating heart - and as such they are prime real estate locations, commanding eye-watering rents. Istanbul’s growing population is propelling a rental and investment boom, and the scramble for property in this huge city is rarely out of the news. With so much potential for investment it’s unlikely that demand will flag anytime soon, earning this huge city its much-deserved reputation as one of the top investment locations worldwide.
The news that BA will increase its flights to Turkey, offering services from Gatwick to Bodrum and Dalaman, is expected to not only boost tourist numbers but increase interest in real estate in Turkey. British home owners in Turkey will enjoy better links with the UK, while those with rental homes can expect increased bookings and rental income. As well as BA’s new routes, there are also now flights offered year round by other carriers, allowing those living in Turkey’s southern regions to fly home even during off peak months.
2015 might be the year of tourist diversification for Turkey, with plans to attract new markets to the country. Turkey is still relatively unknown to most Americans, but this might change as the Turkish Tourism Office makes plans to entice US travellers - including lucrative business travellers - to event-rich Istanbul. Japanese tourists are also being targeted with the more offbeat areas of the country - and with Turkish cuisine.
A new ‘help to buy’ scheme is aiming to close the gap between foreign and domestic property investment, with the government offering help to Turkish first home buyers. The scheme will not only help provide accommodation for Turkey’s burgeoning middle classes, but also bolster the construction industry and overall economic growth. Meanwhile, an upturn in the demand for serviced apartments in Istanbul could herald this year’s big investment opportunity.
This time it seems Greeks have indeed borne gifts for Turks with their Trojan Horse showing its teeth to ruling parties. Left-wing Syriza Party's election victory poised to send a wave of uncertainty throughout Europe, not a welcome sign for most of us, yet bears excellent news for Turkish real estate. Find out how and why..