A new super-sized canal to be built in Istanbul is already increasing property prices in the surrounding areas, an effect expected to continue as the project develops.
With Turkish President Recep Tayyip Erdogan having won another term in office at the election last week, his third mega-project will be forging ahead at full speed.
The president has already built a continent-crossing bridge in 2016, and the world’s largest airport will be finished by the end of this year.
The new Canal Istanbul will measure 400 metres wide and stretch for 45 kilometres to connect the Sea of Marmara to the Black Sea by 2023.
Real estate prices in Istanbul have been increasing since the first announcement of the three huge infrastructure projects in 2011.
In the western part of Istanbul, price increases aren’t just due to the canal, but to the new airport as well which is located near the northern part of the proposed passage.
Average real estate prices in areas along the proposed route of the canal such as Tahtakale have risen by around 40 per cent since the announcement, and in Arnavutkoy, the northern district near the canal and new airport, average prices per square metre have increased as much as 60 per cent.
Buyers leading the way for the properties with a canal view are overseas property investors.
The Turkish government this year have proposed to reduce the level of property investment needed for Turkish citizenship from $1 million to just $300,000.
In addition, the government will abolish the 18 per cent Vat tax for foreign investors paying in their home currency.
Turkish real estate companies have been investing in new developments following the course of the new canal for around seven years, and now need the project to be built quickly to realise their investment.
Overseas property investors getting in early could find bargains to be had with a view of the World’s latest new super canal.