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SG Istanbul prices continue to rise

Property Here - Wednesday, November 06, 2013

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Property prices in Istanbul, Turkey's largest city, have risen substantially in the last three years, and are showing no signs of cooling.

Istanbul-based property consultants Universal21.com noted how the pace of property price growth in the city has quickened in recent months as both local and foreign investor interest in investing has increased.

In August this year, the price of a new home in the city had risen by an average 2.66 percent month-on-month, and by 13.80 percent year-on-year. This is more than 1 percent higher than Turkey’s national average of approximately 12 percent over the same period.

Monica Anca, Director of Universal21.com, said: “For those investors who purchased property in 2010, the past three years have seen year-on-year increases of between 12 and 15 percent. There are few property markets in the world that could match this level of property price inflation.

“In the past it would have been more difficult for investors from some countries to purchase property in Istanbul, however with restrictions eased this has helped fuel a second spell of double-digit growth in the city.”

According to Istanbul real estate analysts Gyoder’s Home Price Index, property prices in Istanbul have risen by an average of 41 percent since January 2010. Assuming that the current pace of property price increases is maintained, Istanbul could well reach the 50 percent milestone within the next six months.

Studio and two-bedroom apartments currently offer the best capital growth in Istanbul, according to Adil Yaman, Director and Market Analyst at Universal21, 

“Investors should employ the services of a local agent before deciding to invest in the city. As with any city, investors should also proceed with caution and make sure they know as much as possible about where they are investing, including the likely rental yield and demand in a particular area.”