Gulf buyers fuel istanbul property investment

Photo: King Brian

Gulf buyers are fuelling property investment in Istanbul, according to Turkish property agency Spot Blue International Property.

In March 2014 alone, foreigners bought 478 properties in Istanbul, out of a nationwide total of 1,362, according to the Turkish Statistical Institute. Istanbul accounted for 20 per cent of all property transactions in Turkey during March.

Investors from the Middle East are attracted by prime properties in the high-end areas of the city, but also by the investment potential of developments in the up-and-coming suburbs. Indeed, evidence suggests that districts such as Bebek and Nişantaşı on the European side of the city, and Başdat Street on the Asian side are helping to drive foreign sales, as they attract an increasing number of wealthy citizens from the Gulf nations.

Sales to foreigners are further boosted by Middle Eastern investors targeting buy-to-let opportunities in residential developments in the suburban districts of Bahcesehir, Sariyer, Beylikduzu, Arnavutkoy and Esenyurt, notes Julian Walker, director at Spot Blue.

“The Gulf-Turkish affair is gaining momentum,” he says. “Only this month, Istanbul hosted an investment summit during which Turkish President Abdullah Gul invited investors from Kuwait, Qatar, Saudi Arabia and the United Arab Emirates to come to Turkey. Earlier in the year, a Turkish delegation was in Qatar promoting Turkey while a Kuwait Turkish Real Estate Forum will take place in Kuwait at the end of April. At Spot Blue we have seen a rise in interest from Kuwaitis and Qataris in particular in recent weeks. For Gulf investors, Istanbul is an attractive stepping stone between the East and West, as well as a place to be seen.”