In this weeks blog I will follow on from my last blog/report and try and breakdown the micro zones of Tarlabasi and offer my view of their future potential.
Currently, the Tarlabasi neighbourhood consists of three distinct small zones: the section that is closest to Taksim square (see map below A), where much organic property regeneration has already occurred, the Municipality backed regeneration zone (see map below B) in the centre where the demolition and construction of the real estate is underway and the last part being the lower area that lies closest to Galatasaray and the Golden Horn (see map below C).
The areas all have a markedly different feel and will all no doubt be influenced by the project.
First of all, perhaps the easiest to predict will be the outcome in the project area (marked B on map). The project company has already set up a sales office on Tarlabasi Blvd and the prices they are quoting for the end product are $5000 per square meter, plus VAT. The brochures are full of glossy pictures of pristine buildings, with plenty of glass and steel and resembling the old style buildings with their signature bay windows ( http://www.tarlabasiyenileniyor.com/)
The project is mixed-use, with offices, hotels, commercial, and residential. At these prices, their target market is likely to be wealthy Turks, Western investors and wealthy Arabs. Rumour has it that the marketing is being heavily directed towards the Middle East. We have been buying a few properties on the outskirts of the regeneration for a few years and expect to make an exceptional return. We believe that there are still opportunities especially if you, like us, do believe in an extended price hike once the project is finished.
İn the area next to Taksim (marked A on map), there has been a small explosion of property restorations over the past 5 years. Walking through this neighborhood, you can already see the presence of at least twenty apartment style hotels, as well as various short-term residences. Side by side with relatively run-down buildings, these stand out with their newly plastered and painted exteriors. There is also a vibrant rental market here. İt is looking less and less like the old Tarlabasi and fast becoming more like a mini Cihangir everyday.
İn the final area (marked C on map), extending from main artery of Kalyoncu Street to Omer Hayyam the regeneration has been less rapid, but now with a couple of hotel projects underway, as well as the regeneration project itself, it seems set to take off. The prices here are about 20 percent cheaper than non-project Tarlabasi, so we feel it is the target for investment. İn addition, it is within a few yards of İstiklal Street and the highly trendy neighborhoods of Tunel, Galata, and Asmali Mescit.
Needless to say, the mega project will bring much needed infrastructure to the whole Tarlabasi area which will enhance Tarlabasi greatly. Whichever way you look at it, it seems very likely that the area as a whole will smash through the current property price levels of $1250- $1500per square metre very soon and will head Northwards on a steep price trajectory for a good 5-10 years hence.