Second City Investments: Istanbul

Posted by Jude Buttle on Wednesday, August 20, 2008

A meeting of Europe and Asia, Istanbul combines two continents and is blessed with the benefits of both. A place that was once the capital of three Empires, this wonderful city is now full of art, culture and mystique.

Sultan Ahmed Mosque - photo by myhsu

Fast Facts

Country: Turkey

Population: 11,372,613

Area: 1,830.92 km²

Currency: New Turkish Lira

Official Language: Turkish

Telephone Code: +90 212 (European side), +90 216 (Asian side)

Setting the Scene

Istanbul is situated in the north-west Marmara Region of Turkey, with the Black sea to the north, the Sea of Marmara to the south and the Bosphorus Strait flowing in between.

Istanbul is the only metropolis in the world that's located on two continents - Europe and Asia. Due to its location, the region has endured several deadly earthquakes, the most recent in 1999, and experts are warning of another by 2025.

Formerly known as Byzantium and later Constantinople, Istanbul was the former capital of three major empires - Byzantine, Ottoman and Roman.

The city's different cultural history is evident in the extensive array of museums, churches, palaces, mosques and markets. The historic areas of Istanbul were added to the UNESCO World Heritage List in 1985 and it has been chosen as joint European Capital of Culture for 2010.

Istanbul lays claim to being Europe's most populous city and the third in the world. The city's population has been growing at a rate of 700,000 new residents each year, which has ignited a building boom as the need for housing has increased so drastically.

Major Industries

Historically, Istanbul had been the hub of Turkey's economy because of its great location for both land and sea trade.

Today, Istanbul still holds onto the position as the economic backbone of the country and in 2005 the city of Istanbul had a GDP of $133 billion. Istanbul made 56.6% contribution of all the exports and 60.2% of all the imports for the whole of the country. In addition, the city generates 55% of Turkey's trade and 21.2% of the gross national product.

Istanbul has become the core of Turkey's international tourism trade and the country's other major products include: food processing, textile production, oil products, rubber, metal work, leather, chemicals, pharmaceuticals, electronics, glass and alcohol.

Istanbul Lifestyle

The region has a Mediterranean climate with hot, humid summers and cool, rainy, often snowy winters.

Istanbul is a heady mix of cultures with both modern and traditional influences. The city's bazaars, teahouses, Turkish baths (hamam) and architecturally awe-inspiring mosques are a reminder of days gone by, whilst the buzzing nightlife adds a contemporary edge.

The exclusive and expensive clubs along the Bosphorus are brimming with the beautiful, bronzed and botoxed brigade.

There's also the sensational skyline and wonderful waterways that provide the perfect backdrop for a rapidly growing number of rooftop bars in the city.

Leading Lights

Famous film director Elia Kazan was born in Istanbul in 1909. Kazan went onto become an award-winning film and theatre director winning Oscars as ‘best director' in 1947 for the Gentlemen's Agreement and in 1954 for On the Waterfront, in which Marlon Brando mumbled the immortal lines: "I coulda been a contender."

Capital Comparison

The capital city of Turkey is Ankara, which is the centre of the Turkish government and houses all foreign embassies. It is an important crossroads of trade, strategically located at the heart of Turkey's highway and railway networks and serving the surrounding agricultural area.

Istanbul, the country's most populous city, melds an intriguing history with its modern status as the cultural, industrial and financial hub of Turkey.

Although Ankara is an important commercial and industrial city with it being the seat of government, it seems to lack the lustre and charm of the more popular Istanbul.

Property Insight

Turkey has seen a sharp rise in real estate prices since the relaxation of foreign ownership restrictions in December 2005 and nearly 75,000 foreigners, mostly Britons and Germans, have bought properties there.

Istanbul has a growing population of young and affluent residents who are increasingly looking to become homeowners. The city also has an influx of foreign investors boosting the areas property market.

The smaller apartments in Istanbul have an above gross rental income of 8%, according to figures from Global Property Guide. The average yield throughout the districts is 7%. Bigger apartments tend to have lower yields with 250-sq.m apartments generating a yield of around 5.8%.

However, apartment prices per sq. m have an opposite trend with smaller apartments selling cheaper at €1,041 for a 60-sq. m apartment. On the average, units go for €1,439 per sq. m.

Conclusion

A city sitting on two continents, Istanbul is vitally important to Turkey - both financially and culturally. With an established business environment and a population that continues to grow at a rapid rate, Istanbul has the right ingredients for a bright and prosperous future.

Search for Property in Turkey

If you are looking for Property for sale in Istanbul, such as villas, apartments or other types of real estate, why not check out TheMoveChannel.com Turkey, which has a large number of listings from Turkish estate agents and developers selling properties in the area: http://turkey.themovechannel.com/

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