The impressive increase in real estate prices in Istanbul continues. While the annual increase in home prices in Istanbul as of October was 18.3 percent, this rate was just 13.04 percent for Turkey as a whole. The increase in home prices in Istanbul has widened the gap with the whole of Turkey in general, in terms of the pace of the increase. Recent projects such as Canal Istanbul, the 3rd Bridge and the 3rd Airport, which have come one after the other, have been influential in the widening of this gap. The interest of foreigners is also concentrated in Istanbul. All of this triggers the widening of the gap.
According to the Central Bank real estate price index, the purchase value of a house in Istanbul is now 2.080 TL per square meter, while the purchase value of an average house in the whole of Turkey was stated as being 1.313 TL per square meter. This shows that if you want to buy a 100 square meter house in Istanbul you would need to pay 208 thousand TL, while the same figure in the whole of Turkey falls to 131 thousand 300 TL. This price is valid for ready built homes.
New homes have risen by 17.8%
According to the New Homes Price Index of the Central Bank, the price of a new home has increased by 17,56 percent when compared with last year. When we look at the country in general it can be seen that the rise in house prices is continuing. However, the pace of the increase is not as high as it is in Istanbul.
What really stands out is that the gap between house prices in Istanbul and Turkey is widening fast. For instance, according to the House Price Index of the Central Bank for last October, the average price of a house in Istanbul is 8.75 percent higher than Turkey in general. In October in the previous year, on the other hand, the value of a house in Istanbul was only 3,93 percent higher than the average for Turkey.
The gap between Turkey and Istanbul in new builds is far greater. The price of a new house in Istanbul is 11.9 percent higher than the average for Turkey.
The important projects being undertaken in Istanbul this year play a role in this rate of increase being higher than the general rate for Turkey. Projects such as the third bridge, Canal Istanbul and the third airport are influential in the price increase. Another trigger is the fact that Istanbul is the favored market for overseas buyers. The positive impact of these projects and interest from overseas is causing the gap between Istanbul and Turkey as a whole to grow.
Foreign investors are effective
According to Haluk Sur, member of the board of directors of Emlak Konut, who states that the concept of trademark cities is valid in every country in the world, and that international investors take an interest in these trademark cities, “Istanbul is the trademark city of Turkey. This is actually dependent on the interest shown by local investors. If we want to make Ankara and Izmir trademarks as well, the first steps need to be taken by local investors. It is based on supply and demand. However, real estate projects which will develop Izmir, Ankara, Bursa, Antalya and the Mediterranean coast also possess great potential.”
Sur, who stated that there is a gap between trademark cities and the country as a whole throughout the world, continued as follows: “When you talk about investment in America, the cities that come to mind are New York and Miami. In Japan it is Tokyo, and in France the increase in prices in Paris is above the country in general. This is the same everywhere. It has its own logic. This is not an indicator which shows that Istanbul is overheating.”