The real estate investments of foreigners in Turkey have doubled by increasing from 2 billion 621 million dollars to 5 billion dollars in the last 3 years.
Turkey boasts arguably the best-performing real estate market in the world and 2016 has shown to be no exception. Growing population, mega projects, growing income per capita, urban renewable projects, and ease of buying property are the main driving forces behind the rapid growth of the real estate sector in Turkey.
New infrastructure developments in and around Istanbul, including new highways and public transport, have led to increases in property prices, improving access to areas previously less attractive to commuters. The construction of the third Bosporus Bridge in particular opens up new areas of Istanbul for development. Without a shadow of a doubt, Istanbul is currently seen by international real estate investors as a winning bet.
There are currently 360 shopping malls in Turkey. The total gross leasable area was 10.5 million sqm across Turkey at the end of 2015. It is expected that 2 million sqm will be added, the total gross leasable area will reach 12.5 million sqm by 2019.
Istanbul is the epicenter of Turkey’s giant shopping mall sector. Istanbul’s total gross leasable area is over 4 million sqm. There are 103 shopping malls in Istanbul, 37 in Ankara, and 22 in Izmir. The rent for per sqm in shopping centers increased 14.5% in 2015 compared to the previous year.
The total investment volume of the Turkish shopping mall sector stands at $52 billion ($15 billion foreign investment) as of January 2016. However, there is still room for investment in the market since only 57 of Turkey’s 81 cities have shopping malls. The Shopping Mall Investment Association predicts that 40 new shopping malls, worth $3 billion in potential investment, will be constructed by 2019.
Istanbul International Finance Center
The construction of the Istanbul International Finance Center is set for completion in 2016. The project, which began in 2012, will bring together a number of key financial institutions under one framework and will provide a shopping center, living areas and a congress center.
The cost of the project is around $2 billion. It will also provide employment for 30,000 people. The construction of the office space for the center accounts for 62% of all current office space construction in Istanbul and will surely spur on demand in the surrounding area. Projects such as these are part of the reason why Istanbul holds such promise on the international real estate market.