Hotel rooms spark investor interest in Istanbul property

Elite Perla Palace hotel roomEven though Turkey’s surging economy is the current driving force behind the latest wave of interest in Istanbul, this is a city that is making a name for itself off its own back too, and drawing the attention of the European property investor, one expert has claimed.

A recent PricewaterhouseCoopers (PwC) survey has unveiled as the most popular location in Europe for real estate investors, and there are probably two crucial reasons for this: tourists and big business.
And, next month (March) the city will get another significant boost when it launches its first 40-day shopping festival. The event will dominate the entire city and is likely to see hotel room occupancy soar once again.

Graham Flaherty, property sourcing and marketing at Istanbul Property Investment, explains: “Events like the shopping festival will help, but the city is already popular with tourists, which is probably why hotel occupancy levels are high once again. Yes, Turkey’s growing economy has no doubt helped Istanbul gain some interest from investors, but the city has a thriving business sector and a busy airport, which always keep investors interested.”

Recently the city was bolstered by the Istanbul Chamber of Commerce (ICOC) when it reported that interest from foreign investors had grown as a rapid pace, and that overseas capital flowing into the city has risen year-on-year by 119%. It comes as little surprise, therefore, that Turkey and its own star attraction of a city has emerged from a gloomy economy with more than a few interested property experts.

Elite Perla PalaceAccording to STR Global’s figures, occupancy levels of the Istanbul hotel rooms had returned to their pre-recession best of just under 72%, which has certainly given this type of investment a significant green light for many.

Extra encouragement for hotel room investors can be found in the fact that the ‘supply’ is showing no signs of falling away, with the Invest in Turkey website reporting that Istanbul is now a “magnet of tourism investments” with hotels being developed at a fast rate to cope with the “booming tourism and rising visitor numbers”.

Developments like the luxurious Elite Perla Palace are attracting much of the investor attention, but offering high yields at a time when the hotel room investment market is booming, will always help.
And, with a wealth of blue chip companies like car giant Ford and drinks manufacturer Coca-Cola drawing wealthy business travellers to the area, it is little wonder that investors are showing interest.

For the overseas property investor, looking to the future with any certainty is always tricky, but Istanbul is going through a period of growth and development, and this should put confidence into property buyers. In truth, it is very hard to say how the future will pan out, but with large scale developments taking place in Istanbul and tourism numbers rising and rising, it would appear that words like “growth” and “prosperity” will be associated with this booming city for years ahead.

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  1. Ronnie | Jan 11, 2012 | Reply

    Very resourceful and informative post! This indicates the advantages and disadvantages of considering a property manager that will surely help landlords and tenants out there.

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