Gulf investors look to Turkey
Arab investors are set to become bigger players in Turkey’s property market, according to a leading property investment company.
Colordarcy,com has pointed out that there are some “obvious” economic benefits for Turkey as it sits between Europe and Asia. If one side slows down it can generally rely on the other to boost trade back up.
The Turkish economy has continued to grow, despite the Eurozone’s troubles.
As a result, investors from the Gulf states are increasingly eyeing Istanbul property as a good long term bet according to Colordarcy. Istanbul has seen increasing interest from investors from the UAE, Saudi Arabia, Kuwait and Yemen – all of whom can now invest in Turkish property following the reciprocity law change this year.
The country is actively encouraging more investment from its near neighbours and their arrival has been part of the reason why the Turkish property boom has managed to sustain itself to the point where average prices have already risen over 10% since January 2012 (Source: Knight Frank).
Loxley McKenzie, managing director of Colordarcy.com commented, "In my experience European investors are not the main target for Turkish developers at the moment, it is the growing influx of investors they are welcoming from the Gulf.
"People have been calling Istanbul the "new London" for most of the past 12 months and it is likely that many Middle Eastern investors will find Istanbul a more attractive proposition,” he added. “Turkey is much closer to home and so is the culture.”
The development in the centre of Istanbul's business district will include 5,000 apartments in what is claimed to be the biggest real estate project in Turkey's history at nearly £1.5bn.