Istanbul's Tuzla gains new face
Friday, June 20, 2008 / ISTANBUL - Turkish Daily News Property prices in Istanbul's Tuzla district, located on the shores of the Marmara Sea, have increased two- to three-fold in the last five years. Thanks to its strategic location, the Tuzla area drew attention recently and became home to several significant projects, including Istanbul's Sabiha Gökçen Airport, organized industrial zones as well as a Formula 1 track. The Housing Development Administration of Turkey, or TOKİ, and Kiptaş İnşaat carry on the construction of new housing projects consisting of approximately 6,000 apartments, which also led to a boom in Tuzla's real estate market. The current prices for villas located at the center start from $350-400,000, while it was possible to find villas at affordable prices three or four years ago. While the average apartment price ranged around YTL 25-30,000 ($20,300-$24,400) few years ago, it reached YTL 70-80,000 ($57,000-$65,000) this year. “We try to do our best to convert Tuzla into a commercial and cultural center,” said Tuzla Mayor Mehmet Demirci, noting that they have an innovative vision based on the “4K principles”, including institutional progress, urban improvement, cultural and social development.
New districts boost real estate market
Tuesday, June 17, 2008 / Yavuz Karaman / Istanbul – Milliyet The number of districts in Istanbul will increase to 39 after the enactment of a new law abolishing the current 37 districts and making way for a boost in the real estate market in many of the new areas. Among the newly named districts are Arnavutköy, Ataşehir, Başakşehir, Beylikdüzü, Başakşehir, Çekmeköy, Sancaktepe and Sultangazi. Despite the current stagnation in the real estate sector, it is estimated that the property market, especially in new these districts, will get a boost after the legislation is enacted. Among the new districts, especially Ataşehir, Çekmeköy and Sancaktepe located on Istanbul's Anatolian side, will gain in their capacity for real estate investment. After serious discussion, the Eminönü District, one of the ancient parts of the city, is now integrated into Fatih District. It is estimated that Fatih and its surrounding area, usually on the agenda for urban transformation projects, will be a magnet for real estate investors after the completion of several new projects. Thanks to the new law, Istanbul's city map has changed significantly. Occupying an area of 5,389 square meters, the city has a population of approximately 12.5 million. Under the new law, the population of 12 districts has been reduced, while it has increased in others, including Bağcılar and Kadıköy. After the inclusion of Eminönü in Fatih, the population of the district increases to 455,000 from 422,000. On the other hand, Gaziosmanpaşa's population has declined drastically to 464,000 from 1,013,000. Meanwhile, Ataşehir, one of Istanbul's popular regions for real estate investors, is currently hosting several residential and commercial projects, and it is expected that the district will continue to draw investment in the long term. Land prices are very high in Ataşehir, while the price per square meter ranges from $3,000-$5,000. The price for studio apartments starts from YTL 180,000 ($144,350) and goes as high as YTL 1 million ($801,925). There are plans to change the face of the area through the construction of a financial complex employing more than 1,000 people, making it likely that Ataşehir will become one of the most appealing districts in Istanbul, providing investors the opportunity to reap large profits from the real estate market in the area.
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New projects change the face of Istanbul's Avcilar
Wednesday, June 11, 2008 / Meltem Kara / Istanbul – Hurriyet
Istanbul's Avcılar district, which was devastated during the 1999 Marmara earthquake, is recovering gradually through a number of new construction projects. During the quake, approximately 30 buildings completely collapsed while many of the remaining ones were badly damaged. Due to its strategic location as a venue to sea transportation, the district is beginning to attract numerous investors once again. “Avcılar is improving day by day. Benefiting from the modern architectural design and technological innovations, the district has also become an attraction in terms of visual quality,” said Avcılar Mayor Mustafa Değirmenci. Just before the earthquake, Avcılar was one of the fast growing districts in Istanbul. Before the earthquake, prices for property ranged between $100,000-$400,000, but fell drastically after the natural disaster. “Most of the woes Avcılar experienced as a result of the quake have passed. Prices increased by 70 percent, in line with the rise in demand and they will continue to increase in the next period,” added Değirmenci, noting that it is not easy to identify risky regions and prevent damage in the case of huge natural disasters. Prices per square in the district were between YTL 600-1,000 ($483.25-$805.43) before the quake, and have reached YTL 900-YTL 1,500 ($724.88-$1,208) after the district's recovery. According to this scale, a 90 square meter apartment in Avcılar should sell for YTL 90,000 ($72,488), while a 150 square meter apartment with a sea view would cost YTL 200,000 ($161,086). The Mustafa Kemal Paşa and Üniversite Mahallesi, including Denizköşkler, Ambarlı and Merkez mahalleleri, are the most earthquake-safe quarters of the district, which has hosted more than 300 new construction projects recently. “The offices located along the E-5 highway draw high demand. For instance, the rental for a 250 square meter shops on Reşitpaşa Street is YTL 2,500 ($2,013), while it even reaches YTL 25,000 ($20,135) on the same street towards the center,” said Başak Soner, chairman of Turkish marketing company TURYAP, noting that Avcılar is ranked one of the top districts for the possibility of a high return for real estate investors.
Luxurious offices offer best investment
Saturday, June 7, 2008 / Istanbul – Referans There has been a substantial increase in A class office rents in Istanbul as a result of the competition among foreign investors to open offices in the mega city, and demand is exceeding overall supply. Office rents have increased by 45 percent on the dollar basis for the last year, according to the “Istanbul Office Market 2008 Report” prepared by DTZ Pamir & Soyuer, a real estate consultancy firm. Istanbul's Levent-Etiler district beats the record in the increase rate. The highest office rents are, however, charged in the ŞişliZincirlikuyu-Beşiktaş district with prices reaching $37.6 per square meter. Istanbul faces a serious shortage of office space, say real estate experts, who also note that 180,000 square meters of new office space of are needed, but only 50,000 square meters were built in 2007. The increase in office rents in Istanbul has also reflected on research reports conducted on a global basis. World-famous consultancy firms have begun to present offices in Istanbul together with Moscow as the best means of investment.
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Turkey's economy beats in Istanbul
Tuesday, April 8, 2008 / Istanbul - Anatolia News Agency Istanbul, which has a crucial status since it connects two continents, Asia and Europe, is the heart of Turkey in many areas particularly in terms of the economy, various figures reveal. As the world's only city situated on two continents, Istanbul has recently developed particular activities to turn the city into a finance center under the leadership of the Banks Association of Turkey (TBB). The city, more crowded than several European countries with a population of over 12 million, is drawing attention with foreign investments it has attracted in recent years. The Istanbul Stock Exchange (IMKB) reached a transaction volume of YTL 387.8 billion as of December 2007, while the IMKB National 100 Index ranked 11th among 60 world bourses, with an annual gain of 42 percent. Key city for trade “Istanbul is the heart of the economy today, handling almost 60 percent of Turkey's aggregate exports and imports,” said Tanıl Küçük, chairman of the Istanbul Chamber of Industry (ISO). “Almost 25 percent of Turkey's gross national product is of Istanbul origin. Istanbul, which has been the center of the manufacturing industry since the 1950s, creates over 30 percent of the added value of Turkey's manufacturing industry.” The ISO had 13,950 members, as of the end of March, said Küçük. In 2006, there were 216 ISO member enterprises among the top 500 companies, he added. Istanbul more than deserves to be a global center with the values it has, said Küçük. “However, this should not mean ignoring industry. It is not realistic to think that Istanbul, which hosts 38 percent of industrial enterprises in Turkey, which creates over 30 percent of total added value of the manufacturing industry, and whose 32 percent employment is related to industry, will give up industry easily and gain a service-focused structure.” Among incentive-dependent investments in Istanbul between 2002 and 2006, the manufacturing industry ranked first with 53 percent, said Küçük. “This reveals Istanbul has not given up industry, and that industry will stay in the city at any rate.” Second-largest city Istanbul, which is one of the world's top 20 largest cities, is the second-largest city in Europe after Moscow, said Murat Yalçıntaş with the Istanbul Chamber of Commerce (ITO). In the distribution of economic activities in Istanbul, trade ranks first, with a 34.1 percent share, and is followed by industry, with 23.9 percent, construction, with 17.1 percent, and transportation and communication, with a 7.2 percent share, he said. Istanbul constitutes 1 percent of agriculture, 28 percent of industry, 21.2 percent of construction, 24.6 percent of trade and 23 percent of transportation and communication in Turkey, Yalçıntaş said. The city holds 46 banks among a total of 50, 42 percent of bank deposits and 48 percent of bank loans, he added. Istanbul's daily economic production size exceeds YTL 500 million, Yalçıntaş said, and added that there are 26,091 export and 34,722 import firms in the city. Istanbul is ahead of many European Union countries, and all Balkan countries, in export figures he said. Almost one-third of all commercial enterprises in Turkey operate in Istanbul, which produces 45 percent of Turkey's wholesale trade and 55 percent of aggregate trade volume, he added. Istanbul, is the world's 27th most expensive city, according to a list published by Swiss bank UBS, is considered one of the hottest real estate markets in Europe, according to a joint survey by the Urban Land Institute and PricewaterhouseCoopers. Selected as the cultural capital of Europe for 2010, Istanbul also features historic districts listed as World Heritage Sites by the United Nations Educational, Scientific and Cultural Organization (UNECSO) in 1985.
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