Bustling Istanbul; Turkey's largest city and the country's economic, cultural and historical heart is emerging as a major property investment hotspot for 2015.
3 of its streets have been identified as showing among the strongest rental growth in the world in a new report published by international real estate specialists Cushman & Wakefield.
According to the report, Istanbul's Istiklal Avenue, Bağdat Avenue and Abdi Ipekçi Avenue ranked in the top 10 streets for rent increases in the world.
A total of 17,500m2 was rented on these three streets over the course of 2014. Rents on Istiklal Avenue and Abdi Ipekçi both on the European side of the city and Bağdat Avenue on the Asian side increased by 27.3%, 20-9% and 24.4% respectively.
Foreign investment in Turkish real estate increased 56% in 2014, with a step-up in transaction activity involving investors from the Middle East. By the end of 2014, 1.16 million residences had been sold, showing 2% transaction growth year-on-year. 34% of purchases were made using mortgage finance with the remainder of foreign and domestic investors being cash-buyers in Turkey's property market.
Turkey had an outstanding year for tourism in 2014, boosting both its economy and appeal to foreign property investors. Cushman & Wakefield also showed the volume of hotel investment climbed to 275 hotels in 57 municipalities with the number of available beds increasing by 73,000 units, responding to rapidly increasing demand.
The average price of a one-bedroom property in Istanbul's suburbs is around €50,000, with rental values for this market currently at an average of €300pcm, representing a healthy rental yield of 7%.
Istanbul's domestic rental market is growing consistently, buoyed further by short supply of new 1-bedroom apartments suitable for young professional couples, the largest group of renters in the city. The general expectation among this renting demographic is for stylish, practical living, with a range of on-site services and amenities and good proximity to the city centre.