How The Kanal Istanbul Project Affects Real Estate Prices?
Values of properties in these areas are expected to increase by a staggering 50%, and this is also attracting overseas investors.
In January 2018, to much anticipation, the Turkish Transportation, Maritime and Communications Ministry announced the 45-kilometer route of the Kanal Istanbul Project. Entering Küçükçekmece Lake on the European side of Istanbul, it will pass through SazlIdere Dam, before joining the Black Sea, near the Terkos Dam.
The project affects the Başakşehir, Küçükçekmece and Arnavutköy neighborhoods of which the latter is already famous as the location of the New Istanbul Third Airport, another mega project of Istanbul.
Value of properties in these areas are expected to increase by a staggering 50%, and this is also attracting overseas investors. However, experts are urging potential investors, both foreign and Turk to research before rushing to buy properties in those districts.
Emphasizing details are crucial; they advise using professional real estate agents with the reliable local knowledge to forecast the potential investment return of any real estate or land purchase.
About the Kanal Istanbul
The Kanal Istanbul project dubbed the “crazy project” by the president of Turkey, Recep Tayyip Erdoğan will link the Black and Marmara Seas and in the process, create a new mini island on the European side of Istanbul.
First announced in 2011, the actual idea has been around since the early 1990s. The concept behind the project is to create a new, artificial waterway to divert sea traffic away from the Bosphorus that is overloaded with high levels of tanker traffic. Plans also include two giant cities to be built on either side of the canal.
Local Reaction to Kanal Istanbul
Locals are reporting a flurry of real estate interest, especially from large companies and Arab buyers. The Turkish Transport Ministry emphasized locals of the Baklalı and Dursunköy villages will not be disadvantaged by the project, but they are worried because the Istanbul New Airport construction nearby has already resulted in more than 75% of local land being sold to investors.
Hampering to hold onto their village lifestyle, they are nervous about the future. They say many of their population are elderly and won’t be able to adapt to apartment life in luxury residences.
Some locals and the WWF (World Wildlife Fund) are also concerned about the environmental impact of the project and what the urban landscape will eventually look like. The WWF has urged experts to invest in more research.
Istanbul Property Price Index
In June 2017, Anadolu National News Agency reported house prices had already increased, even just with the announcement of the project. Sahibinden, Turkey’s leading house sale website also said there had been a flurry of activity in the Arnavutköy, Başakşehir, Küçükçekmece and Esenyurt neighborhoods. Sahibinden has added them to their ranks of promising areas for real estate investment.
In May 2017, Başakşehir reached a record price of 3,458 Turkish Lira per square meter, on the property index, while Küçükçekmece rose more than 50% to 3,375 TL per square meter. Also registering a rise of more than 50%, Arnavutköy per square meterage prices came in at 2,170 TL. In some of these areas, rent has risen 125%.
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