Istanbul is currently the best city in Europe for investment opportunities in the fields of new developments and acquisitions, according to PricewaterhouseCoopers in its Emerging Trends in European Real Estate report.
The report also stated that the city is also second best for opportunities to increase returns on existing investments behind Munich. However, Istanbul also had the same score as first placed Munich at 6.08, so should really have been tied for first place. For the second year running, Turkey's largest city has topped the charts.
Developers have stated that Istanbul is currently experiencing a construction boom, however construction is not fast enough to bite into the increasing housing shortage. Commercial spaces are also in short supply in many areas and this is surely a double whammy of investment potential as there is room for growth in the construction industry, which will result in increased revenues in the economy, and this in turn will generate more demand for housing.
Report further revelaed that Istanbul was the only city that investors actually felt confident in the raw investment potential. The city’s office and retail segments represent the best opportunities for acquisitions with a tied percentage-based score of 24.5% and the hotel segment wasn't far behind with 18.95%.
Alexander Tomlinson, Istanbul property investment expert and director of agency Gem Invest, said: "Istanbul remains one of the few locations in Europe, if not the world, with best proeprty investment potential. The population of the city continues to grow year on year yet despite increased levels of construction there still remains a serious shortage of quality accommodation, some 250,000 units per annum."
In more good news for overseas Property buyers, the cost of living in Istanbul has fallen sharply over the last year, taking the city from 44th to 70th place in a list of the most expensive cities in the world, according to Mercer, a global human resources consulting company.
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