Istanbul Favorite European City for Property
Istanbul is perceived as the best place for property investments in Europe according to a recent survey among hundreds of real estate professionals.
Istanbul ranks at the top among 27 European cities, according to the PricewaterhouseCoopers survey. Dublin and Athens rank lowest, reflecting concerns about high budget deficits in Ireland and Greece.
Istanbul is the best place in Europe to buy or develop property, as Turkey’s economic growth contrasts with declines across much of the region, a survey of 600 real estate professionals by PricewaterhouseCoopers has shown.
Turkey’s largest city was first among 27 European cities in terms of where respondents are likely to make purchases, the survey, released Thursday, showed. It was fifth last year. Istanbul was also first for the best development prospects and second after Munich for returns from existing properties.
The Turkish economy grew at an annual rate of 5.5 percent in the third quarter of last year as record-low interest rates boosted consumer spending and investment. The buoyant economy offers prospects of rising rents and property values, contrasting with a sluggish outlook for Europe’s economies as governments slash spending to reduce debt.
Istanbul “is one of the few markets where investors remain confident in the city rather than in their own ability to buck the general trend through superior real estate investment skills,” PwC said.
Difficulties in obtaining loans to refinance debt or fund new projects continue to hurt the property industry across Europe and investment is going to the highest-quality buildings in cities where tenant demand will lift rents, according to the report by the London-based arm of PwC, the world’s largest accounting firm.