The Turkish government has taken spending on transport and infrastructure to a whole new level this year. I think this goes some way to strengthening the case for Istanbul as a property investment destination.
(PRWEB UK) 10 May 2013
Colordarcy highlights the news from Reuters (3 May 2013) that the Turkish government has agreed on a $22 billion tender to build one of the world’s biggest airports in Istanbul.
Commenting on the news Loxley McKenzie, Managing Director of Colordarcy, said, “The Turkish government has taken spending on transport and infrastructure to a whole new level this year. I think this goes some way to strengthening the case for Istanbul as a property investment destination, particularly considering the growth in tourism that the new airport will bring.”
According to the FT agreement has also been reached on the construction of a $22 billion nuclear plant. According to Colordarcy analysts, this level of spending indicates that the economy is in good shape. This is particularly true when considering the companies tendering for the airport project are Turkish.
McKenzie added “$44 billion is a large sum of money by anyone’s standards and much of the money is being raised inside Turkey, which suggests that the country is feeling confident enough in its long term future to encourage this type of investment.
This is good news for those investors worried about the risk of investing in Turkish property.”
Colordarcy analysts say that with airports comes demand for land and rising property prices. Airport’s gobble up the land around them as companies relocate to be closer and the surrounding areas get a mini economic boom of their own.
India has provided a recent example of the good and bad of the ‘airport effect’. The price of property in Navi Mumbai for example went supersonic at the mere announcement of plans to build an airport. Yet in the 6 years following the announcement, nothing has happened leading to equally dramatic falls in property prices.
Turkey might well deliver on the promise to build one of the world’s largest airports and the acceptance by five Turkish companies to bring the project to reality brings the project a big step closer.
The new airport will also mean that property in the suburbs of Istanbul will begin to get very interesting for property investors particularly in areas in and around the Arnavutköy district on the European side of the city where the airport will be built.
Construction is set for 2017 which means that in the four years prior to the airport’s construction there could well be a boost to the price of property on the European side, which has slipped behind the pace of growth on the Asian side of the city recently.
Notes to the editor:
Colordarcy is a leading property investment company that specialises in finding positive cash flow investment properties worldwide. Colordarcy investment property portfolio includes some of the best properties for sale in Brazil, Florida, Turkey and the United Kingdom.
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