stanbul's residential market is severely undersupplied requiring 250,000 new homes per annum, yet only 100,000 per annum are being constructed. The demand is coming from a rapidly increasing middle class who are able to purchase their home for the first time using mortgages. In addition the city is receiving a staggering 400,000 new migrants from within Turkey every year putting pressure on every level of the property ladder and pushing both sale and rental prices up.
The IMF and EU have issued reports showing that Turkey is on track to be the fastest growing economy in Europe for 2010 with GDP growth expected between 5% – 7%.
Istanbul is the European Capital of Culture for 2010 – in the past this has proven to increase property values, for example, Liverpool and Barcelona.
In the right part of the city, prices are increasing by 20% per annum.