Real estate values increase in Istanbul
Güncelleme Tarihi:
Hürriyet
Oluşturulma Tarihi: Ocak 28, 2009 00:00
ISTANBUL - The global financial crisis has had a negative impact on real estate prices in Istanbul, but the good news is experts predict property values and investment profitability in the city to soar in a couple of months.
Real estate value and investment profitability in Istanbul will sky rocket as new projects and transportation grids come to life, according to experts.
Architect and economist Remzi Kozal, chairman of Turkey Engineers and Architects Association Platform, or TMMP, said: "Istanbul Metro, as part of the Marmaray Project, will add a new face, a new structuring to Istanbul as metro transportation areas will be the most profitable regions. Old areas will lose value."
Kozal said the new valuable districts would be Arnavutköy on the European side and Çekmeköy on the Asian side. "Eminönü, the most important shopping center of the past is already losing value. It is even debated whether or not it remains a municipal district. The highway starting from Mahmutbey junction to Hasdal-Kemerburgaz via Arnavutköy meets the TEM highway at the Tayakadın village. A leg of this road goes to Kırklareli and the other to Karaburun village in the Black Sea shore. This route will clearly be connected to the coastal road in the Black Sea and to the third Bosphorus Bridge. The railway system going from Gaziosmanpaşa-Sultangazi to Arnavutköy will be of critical importance. In the Asian side, the Şile highway is becoming an important axis. The Üsküdar-Çekmeköy metro will stretch to the Kartal-Tuzla coastal line via Sabiha Gökçen Airport and Sultantepe-Kurtköy."
Real estate prices drop in every district
The global financial crisis has had a negative impact on Istanbul as real estate prices have dropped in almost every district, some of which reached over 30 percent discounts. The Istanbul Real Estate Agencies Association released a study indicating that in some regions discounts were even higher.
Scarcity of cash resources pushed builders to sell newly-built houses at drastic discounts. A property in some districts that was impossible to buy for 100,000 Turkish Liras 5-6 months ago is now being sold below 100,000 liras. Some are still pushing for more discounts. But real estate agencies warn: "We never say ’no’ to discounts. But if it is too much, you may miss the opportunity." Aşkın Çınar, RETÜRK Real Estate’s CEO, said: "Buyers who are pushing too hard may lose their chances. Buyers determine the housing prices. This is a buyer’s market right now."
As an example of missed opportunities, Çınar said: "One of the biggest infrastructure constructors in Turkey came to our office 4 to 5 years ago and said: ’I want to go see different areas. You recommend a region with high future potential and I will buy a lot and start a project.’ He was considering Çekmeköy and was ready to make $150 to 200 million investment. And this was a year before the opening of the Formula-1 track. I took him to fields in Akfırat around Istanbul Park and told him the lot prices. He preferred lots with a $25-50 square meter price, but offered $30 for $50 lots and $15 for $30 lots. In the end, he didn’t buy anything. The land he didn’t buy at $15-20 million then is being sold at $150 million today. Now he says ’I wish I had bought some.’ But it’s too late now."
Profit potential
Kozal, who is also a real estate expert with an SPK certificate, stressed Istanbul’s potential: "Real estate markets and the construction sector have been facing an economic recession for a long time. The construction sector in Turkey, like the rest of the world, is seriously affected by the crisis. But on the other hand the situation presents an opportunity. I think real estate prices that have been under pressure will gain speed again in May or June."
Kozal defended his projection that real estate prices will skyrocket in May or June. He said new buildings were being built according to the new building code, which came into affect after 2000. The code assured buildings were earthquake resilient and their prices were not substantially affected by the crisis.
Kozal also said Istanbul was undergoing a huge change. Places that were previously popular and had huge price tags were now losing value and new areas are gaining value. City dwellers could see that very clearly, he said, and that this pointed at visible potential. Kozal also said the city was being restructured through new transportation grids. "The city has global profit potential after the global crisis."
Architect and economist Remzi Kozal, chairman of Turkey Engineers and Architects Association Platform, or TMMP, said: "Istanbul Metro, as part of the Marmaray Project, will add a new face, a new structuring to Istanbul as metro transportation areas will be the most profitable regions. Old areas will lose value."
Kozal said the new valuable districts would be Arnavutköy on the European side and Çekmeköy on the Asian side. "Eminönü, the most important shopping center of the past is already losing value. It is even debated whether or not it remains a municipal district. The highway starting from Mahmutbey junction to Hasdal-Kemerburgaz via Arnavutköy meets the TEM highway at the Tayakadın village. A leg of this road goes to Kırklareli and the other to Karaburun village in the Black Sea shore. This route will clearly be connected to the coastal road in the Black Sea and to the third Bosphorus Bridge. The railway system going from Gaziosmanpaşa-Sultangazi to Arnavutköy will be of critical importance. In the Asian side, the Şile highway is becoming an important axis. The Üsküdar-Çekmeköy metro will stretch to the Kartal-Tuzla coastal line via Sabiha Gökçen Airport and Sultantepe-Kurtköy."
Real estate prices drop in every district
The global financial crisis has had a negative impact on Istanbul as real estate prices have dropped in almost every district, some of which reached over 30 percent discounts. The Istanbul Real Estate Agencies Association released a study indicating that in some regions discounts were even higher.
Scarcity of cash resources pushed builders to sell newly-built houses at drastic discounts. A property in some districts that was impossible to buy for 100,000 Turkish Liras 5-6 months ago is now being sold below 100,000 liras. Some are still pushing for more discounts. But real estate agencies warn: "We never say ’no’ to discounts. But if it is too much, you may miss the opportunity." Aşkın Çınar, RETÜRK Real Estate’s CEO, said: "Buyers who are pushing too hard may lose their chances. Buyers determine the housing prices. This is a buyer’s market right now."
As an example of missed opportunities, Çınar said: "One of the biggest infrastructure constructors in Turkey came to our office 4 to 5 years ago and said: ’I want to go see different areas. You recommend a region with high future potential and I will buy a lot and start a project.’ He was considering Çekmeköy and was ready to make $150 to 200 million investment. And this was a year before the opening of the Formula-1 track. I took him to fields in Akfırat around Istanbul Park and told him the lot prices. He preferred lots with a $25-50 square meter price, but offered $30 for $50 lots and $15 for $30 lots. In the end, he didn’t buy anything. The land he didn’t buy at $15-20 million then is being sold at $150 million today. Now he says ’I wish I had bought some.’ But it’s too late now."
Profit potential
Kozal, who is also a real estate expert with an SPK certificate, stressed Istanbul’s potential: "Real estate markets and the construction sector have been facing an economic recession for a long time. The construction sector in Turkey, like the rest of the world, is seriously affected by the crisis. But on the other hand the situation presents an opportunity. I think real estate prices that have been under pressure will gain speed again in May or June."
Kozal defended his projection that real estate prices will skyrocket in May or June. He said new buildings were being built according to the new building code, which came into affect after 2000. The code assured buildings were earthquake resilient and their prices were not substantially affected by the crisis.
Kozal also said Istanbul was undergoing a huge change. Places that were previously popular and had huge price tags were now losing value and new areas are gaining value. City dwellers could see that very clearly, he said, and that this pointed at visible potential. Kozal also said the city was being restructured through new transportation grids. "The city has global profit potential after the global crisis."