Istanbul, has retained its top rank for attracting property developers and investors for the second consecutive year. Photograph Herbert Spichtinger/Corbis
Istanbul, Munich and Warsaw are the new hotspots for property investors and developers, as much of Europe remains mired in a vicious cycle of low or no growth, mounting debt and drastic austerity measures.
London – usually seen as the gold standard of real estate – has lost some of its allure and is now just hanging on at the bottom of the top 10, according to a report by PricewaterhouseCoopers and the Urban Land Institute. The UK capital is regarded as "too expensive for the economic outlook" by many. But nowhere can be considered a "must buy" today, the report said, highlighting that Europe's economic crisis has left the property sector in limbo, with fast-diminishing access to bank loans and depressed rental demand.
"It's going to be a volatile market across the board," said John Forbes, real estate partner at PwC and author of the report. "Investors realised there's no point in hanging around and waiting for an upturn because there wasn't one coming."
He believes that regulatory changes forcing banks to sell off risky assets will create opportunities, in particular for equity investors less reliant on debt. Also, insurers and pension funds are beginning to step in and offer finance, although they will not be able to fully plug the gap left by banks unwilling to fund property Turkey investments.
Istanbul held on to the top spot for new investment and development prospects for the second year running, thanks to its booming economy and youthful population. Munich, with one of the lowest unemployment rates in Germany, came second, rated for its stability, followed by Warsaw, which is rapidly becoming eastern Europe's financial hub, boosting the city's office sector.
I think Turkey have healthier economies than the UK or France. Be hurry.. If you are thinking invest in Istanbul now i hope it can't be too late. :)
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