In 2009, sentiment regarding Istanbul remained strong and it was ranked third for investment prospects and first for development.

There was a view last year that Istanbul would be less affected by the economic problems besetting the rest of Europe: “Economic troubles haven’t had the same impact on Istanbul’s commercial real estate as they have with other European locations.” This year, sentiment has weakened, particularly for existing properties, and Istanbul has fallen to seventh for existing properties and fifth for new acquisitions.

An interviewee comments that the “investment community is very reluctant about Turkey.” Investors recognise that 2009 was a tough year, but the view is that the situation is stabilising.As one investor commented, “Nothing will be worse than 2009, but we do not expect a quick recovery in the market.”The long-term economic prognosis for Turkey generally and Istanbul specifically is extremely positive. As one international investor observes, it is a “large city with young population.” It is for this reason that investors rank Istanbul first for development, as was the case in 2009. The enthusiasm of local investors was generally greater than that of cross-border investors.

Full Report