The impact of mega projects in Istanbul on the real estate market
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In recent years, the city of Istanbul has witnessed a boom in mega projects, which have changed its skyline and urban landscape. These projects not only changed the physical face of Istanbul, but also had a profound impact on the real estate market. This type of mega projects are not only construction projects, but rather engines of urban and economic development, providing many opportunities and improvements in the real estate market and enhancing the attractiveness of Istanbul as an important investment destination. Mega projects in Istanbul have brought about an undeniable transformation in the city's real estate market. They have increased demand that usually leads to an increase in prices and the value of the properties themselves, improved infrastructure, and changed the look and structure of neighborhoods, providing many opportunities for investors.
Mega projects in Istanbul
Istanbul has embarked on an ambitious journey of urban development and urban renaissance through various mega projects, the most prominent of which are the following:
Istanbul New Airport Project
The New Istanbul Airport project constitutes a milestone in the history of Turkish aviation. This massive project, which aims to create one of the largest and most advanced airports in the world, has not only changed the way people travel, but has also had a profound impact on Istanbul's real estate market.
The most direct and important impact of Istanbul Airport on the real estate market is the increased demand for commercial real estate in its vicinity. While international companies and institutions seek to establish a presence near the airport, areas such as Arnavutkoy, Eyup, and Basaksehir have witnessed a boom in the development of office and commercial real estate. This is due to the rise in real estate prices and rental prices in these areas.
The influx of employees and contractors working at the airport has stimulated the development of residential projects near it. People working at the airport often look for housing within a convenient commuting distance for them. As a result, residential real estate projects have boomed to meet the needs of airport employees and their families.
Also, the development of Istanbul Airport has led to extensive infrastructure improvements in its vicinity. New roads, public transportation options, and upgraded facilities have made the surrounding areas more accessible and attractive for real estate investment, and improved infrastructure has led to higher real estate prices in these areas.
Local and international investors have realized the potential impact of Istanbul Airport on the real estate market and have flocked to buy properties in areas connected to the airport, anticipating higher property prices and rental income in the long term.
Istanbul Canal Project
The Istanbul Canal Project, an ambitious endeavor of the Turkish government, aims to create an artificial waterway linking the Black Sea to the Sea of Marmara. The Istanbul Canal Project aims to relieve congestion in the Bosphorus Strait, one of the busiest sea lanes in the world. As one of Turkey's most important infrastructure projects, Canal Istanbul will not only change the country's maritime landscape, but also promises to have a profound impact on the region's real estate market.
One of the most obvious impacts of the Canal Istanbul project is the potential for large-scale waterfront real estate development. The areas surrounding the canal are expected to become prime real estate locations, attracting investors and developers wanting to take advantage of the stunning views and proximity to the waterway. Properties located near the proposed canal road have already seen land values rise, and investors have rushed to purchase land in anticipation of future development and increased demand for residential and commercial properties.
The construction of Canal Istanbul requires major infrastructure development. New roads, bridges and public transportation networks will be built to support the project. These infrastructure developments will enhance connectivity in the surrounding areas, making them more attractive for real estate investment.
The Istanbul Canal Project includes plans to develop commercial and industrial areas along the canal. These areas are expected to attract companies, logistics companies and manufacturing facilities. Therefore, there will be a demand for office space, warehouses and industrial real estate in the area.
The Canal Istanbul project is expected to reshape the Istanbul real estate market, creating new opportunities for investors, developers and homeowners alike. The promise of waterfront property development, increased land values, and improved infrastructure makes the areas surrounding the canal very attractive for real estate investment.
Istanbul Great Tunnel Project
The Istanbul Great Tunnel is an ambitious transportation project that aims to reduce traffic congestion and enhance communication between the European and Asian sides of Istanbul. It connects the neighborhoods of Bakirkoy on the European side and Uskudar on the Asian side. The Istanbul Great Tunnel project will be the third tunnel to pass under the Bosphorus Strait. The Turkish President said: “This project will be the third tunnel to pass under the Bosphorus Strait after the (Marmaray, which was opened in 2013) and (Eurasia, which was opened in late 2016) tunnels,” indicating that the project includes 11 railway lines that will be used daily by 6.5 million people in Istanbul, as the main reason for building the Great Istanbul Tunnel is to reduce traffic congestion in the city of Istanbul.
The project includes 3 floors under the Bosphorus Strait. The length of the Great Istanbul Tunnel is 4.5 km under the Bosphorus Strait. The length of the metro line is 31 km and includes 14 stations, while the length of the highway will reach 16.5 km. This tunnel ensures movement between the European and Asian sides of Istanbul via roads and railways.
The Minister of Transport and Infrastructure of Turkey announced that the third tunnel that will connect the European and Asian sides of Istanbul, which was officially called the “Great Istanbul Tunnel,” will be operational in 2028.
One of the most important impacts of the Istanbul Great Tunnel Project on the real estate market is the increased accessibility. Neighborhoods located near the tunnel entrances and exits are expected to see a significant increase in property values, as residents in these areas will enjoy shorter commute times and improved connectivity to the rest of the city, making them highly desirable locations for both homeowners and investors.
Istanbul Financial Center Project
The Istanbul Financial Center Project, a wise initiative by the Turkish government, aspires to create a world-class financial center on the Asian side of the city. This project, which aims to strengthen the country's financial institutions and attract global financial players, has the potential to significantly reshape Istanbul's real estate market. This project will be a modern financial complex that will house the headquarters of banks, financial institutions and regulatory bodies. The project also includes high-rise office towers, commercial spaces, residential units and infrastructure improvements to support this ambitious endeavour.
The most direct and important impact of the Istanbul Financial Center project on the real estate market is the increased demand for commercial real estate. As financial institutions and companies compete for space within the financial centre, there has been a noticeable increase in the construction of office buildings and commercial space, and this has led to an increase in property values and rental rates in the area.
Also, the influx of professionals, employees and support staff into the financial district has stimulated the development of nearby residential projects, and the demand for housing within a suitable commuting distance has led to the construction of residential complexes that meet the needs of individuals and families associated with the financial sector.
The Istanbul Financial Center project entailed major infrastructure improvements, including transportation networks, roads, and public facilities. These improvements have not only improved accessibility, but also made the surrounding areas more attractive for real estate investment.
Real estate investors are realizing the potential of properties close to Istanbul's financial center, and the prospect of long-term appreciation and rental income has increased interest in these areas. Smart investors are seizing opportunities to acquire properties before the financial district is fully developed.