Istanbul student property 'revolution' underway
Photo: Farm9
As a result of this, there has been a surge in interest from investors from the Arab world and it is only just beginning to be noticed by investors from Western Europe. This revolution is all about higher education
Abraaj Group, an investment firm from the UAE have invested an undisclosed sum in two high rise student property buildings in the Istanbul student areas of Ortakoy and Buyucekmece. This may be just the start of investor interest from the Middle East in this sector.
The reason Istanbul’s student campuses are attracting so much attention is the Turkish government’s commitment to attracting more international students into the country and local students. You could say the education revolution in Turkey is already underway. The number of foreign students arriving to study in Turkey has more than doubled since 2006.
The number of universities in Turkey has mushroomed to accommodate this increase in the overseas student population with 50 new universities established since 2006. Istanbul alone is home to 44 universities with a student population of around 1.5 million students.
Turkey is hoping to gain a share of the lucrative overseas student market which is on course to number 7 million students globally by 2020. The target set by the country is to host 150,000 of these students by 2020. The problem for Istanbul is how to accommodate this sort of increase within the next seven years. There are few dedicated properties on campus which means that there is a significant opportunity for property investors to buy-to-let student property in Istanbul at half the price of equivalent property in the UK.
The benefits of investing in student property in the UK are well known, however according to Adil Yaman of Istanbul Property Consultants at Universal21, little is known about the vast potential of Istanbul in comparison.
“A student studio in Istanbul can be purchased for around £32,000 compared to a similar property in the UK which would cost in the region of £60,000.
The shortage of good, high quality furnished accommodation for students in Istanbul means that yields can be as high as 8% and some developers and property management companies are confident enough to offer a rental guarantee for 5 years. Investors can then exit without being liable for capital gains tax.
The market in Istanbul is much bigger than in the UK and for the last few years student property has potentially been the best investment in the UK. There is huge potential here in Istanbul where there is little in the way of purpose built student accommodation and 44 universities." He added.
This article was provided by Universal21.com.