Istanbul becoming more expensive

Istanbul becoming more expensive: According to some real estate experts, Istanbul lacks enough places for new homes to be built and existing land has become very expensive. These rising land prices are now causing a slowdown in the home building sub-sector as landowners hold out for better deals. All the land investors, including large- or small-scale companies, cannot easily find free space in Istanbul. Landowners are trying to sell their plots in return for high prices.  Those who are looking for free space tend toward Istanbul’s border districts, as they cannot find it in the center of the city.

Among these prime sites are the Sancaktepe and Tuzla districts near the eastern border of the city’s Asian side, and the Silivri and Çatalca districts on the city’s European side. They are not close to the center of the city where business areas are concentrated, but they remain relatively free spaces on which to build new houses.

Land prices have directly affected housing prices in the city, which have increased 27.57 percent as of June 2015 year-on-year – above the country average of 18.96 percent – according to data from the Central Bank of the Republic of Turkey (CBRT). Despite the high prices, the need for new buildings has been increasing every day as the city grows. According to figures from the Turkish Statistical Institute (TurkStat), Istanbul’s population was 12.5 million in 2007; this number increased to more than 14 million last year. Another reason behind the increasing demand is people’s desire to live in new, modern buildings with better social facilities. People want much more comfortable places with green areas, parking lots and social facilities. They got bored with the city’s busy traffic, its chaos and noise. However, the increase in land prices will disrupt the sale of land over the next five years, according to some real estate experts. Landowners delay their sales in the hope that their lands could be sold for higher prices. This situation makes the already slow sales even slower.