Haberler

“House prices in Istanbul will go down in 2017”

Urban Land Institute (ULI) and PwC’s joint report on Emerging Trends in Real Estate: Europe 2017 was recently published, shedding light on the real estate sector in Europe for investors.
The report covers subjects related to the Istanbul real estate market, such as the probability of an increasing support from the government, the structure of the young population, and the expectation of a consumption-based growth due to the effect of young professionals in the work force and the fast growing middle class, in the mentioned period.  
In his assessment of the report, Omurga Capital Partners Investment Director, Ilhami Akkum, pointed out that the investors’ interest in real estate would continue, yet with increased risk awareness. “With the declining appeal of investing in TL and foreign exchange, due to inflation, investment in real estate makes it an indispensable alternative, with its steady income generation and value appreciation.  In any case, there will be a demand only for the accurately priced products of credible companies in city center projects. The individual investor will favor residential rather than commercial real estate, while spreading his risk across projects and/or districts,” he said.      

Akkum stated that commercial real estate would become the domain of professional investors, and added, “A general downward trend is to be expected: lower rents, lower prices, lower demand, and a lesser need for space or volume.”