Not just a city of mosques and bridges any more, Istanbul should be a serious port of call for property prospectors and investors. Istanbul recently topped an Urban Land Institute / PWC survey for the best development prospects, leaving behind 26 significant markets including Moscow, London and Barcelona.

Turkey's steadily growing economy, large young population, increasing number of more affluent consumers and an ongoing housing shortage are all important factors to consider when that country's real estate sector. Turkey's real estate investments were 1.1 billion USD in 2006, with the market growing to 4 billion USD in 2007, according to the Wall Street Journal.

Istanbul has significant importance for the real estate investment boom in Turkey. Istanbul has a population of around 14 million, and with a 35% share of the Gross National Product (GNP) of Turkey it is a substantial commercial and cultural hub in the region. The city physically represents only 0.7% of the Turkey’s total surface area and yet Istanbul has 31% of the country's total housing stock. Istanbul recently topped an Urban Land Institute / PWC survey for the best development prospects, leaving behind 26 significant markets including Moscow, London and Barcelona.

Due to high population growth and increasing urbanisation rates, the demand for residential housing is climbing rapidly, and shows no signs of a slowdown in the near future. The Turkish construction sector has registered quarterly average growth rates of 21.2% since 2005, a figure which is substantially above the GDP growth of the country. The construction boom helped the housing gap to decline significantly, however there is still a deficit of 150,000 units per year. Prices have risen 100 per cent in two years in Istanbul. Buying an apartment flat cost €2,500 per m2 in the city centre and €2,000 per m2 in the satellite towns around the city. Istanbul property is expected to generate on average 8% rental yields and 12.5% capital growth annually.