The increasingly unstable geopolitical situation in Turkey could affect the country’s real estate market in the short term, reports Emily Wright from Istanbul.
According to Colliers International’s managing director for Turkey, Kerim Cin, the Turkish airstrikes on Syria launched last Monday, along with the resulting hurdles facing the Kurdish peace process, could have a negative impact on property transactions in the country.
He added that even in Istanbul, which accounts for 30% of Turkey’s GDP, there could be a short-term slowdown in investment, particularly from overseas investors.
He said: “If there is violence, the consumer demand will be affected directly. And this will affect the commercial markets. And the increased risk of violence in the big cities like Istanbul affects retail. Ultimately we need a sustained GDP growth of just under 5% year-on-year, and for that we need geopolitical stability.”
But Cin added that there are still opportunities to invest in Istanbul – currently the fastest growing city in Europe.
“If you get the location and the concept right, then there is always demand for a particular type of residential. Usually mid to high-end stock in central locations on the Bosphorus. And as for the offices, there are tier-one companies operating out of substandard buildings that are 30-years-old. So there are opportunities there too – especially along the main roads and arteries running through the city. And I don’t think the violence is sustainable. I think it will have to stop. So there is a short-term view, which I would suggest is to carefully monitor the market, and the mid to long-term view, which is to invest.”
