The Neighbourhood Watch – Galata

Galata is one of the magical neighborhoods of Istanbul that conjures up a mystical past. The Galata Tower, in fact, is arguably the most iconic of symbols in this city that is resplendent with them. Its stocky, tough yet elegant stature gives testament to the city’s durable character. Built by the Genoese in 1348, it has withstood numerous earthquakes, fires and so forth. Although little of what remains from the Constantinople area still stands today, Galata has managed to retain an oddly gothic feel, with narrow winding streets and plenty of lung-busting hills.

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Those medieval streets

Those medieval streets

It has also become a center for fashion, architecture and design with many smart and sleek offices peppered throughout.   It pushes the boundaries with some of the highest real estate prices with inimitable names such as Dogan apartment, the I-Pera projects, Kamondo Han, and Galata A.S. to mention only a few. An area that 10 years ago was plagued by wandering groups of glue sniffers (tinerci) and plenty of trash, has now almost completely transformed into a very frequented tourist area and an address of the fashionista and legions of Istanbul hipsters, artists, and musicians. Galata is home to many famous actors, designers and alternative artists. Increasingly, it has become a place where the Istanbulu elite have weekend pads.

Perched at the corner of the Golden Horn and the Bosphorous, it is not hard to see why the Genovese booked this spot for their famous lookout tower. In many ways, it is the gateway both geographically and culturally to the city, both then and now. It also retains its commercial feel, as a place where lots of to and fro on prices is exchanged in the music shops on Galipdede St.

Just a few years ago, it was a struggle to find a decent restaurant, whereas nowadays there is a chic café on every corner and many good restaurants, including the Kiva and Enginar restaurants, which specialize in Turkish food.  Try the Nardis Jazz  Club for a chilled out night.

Galata is now superbly connected with the rest of the city in terms of transport. Utilizing the new Sishane line, you can go all the way out to Sariyer at the north of the Bosphorous and in future it will be extended South with a connecting link to the airport. The Tunel line connects you to the Galata Bridge, where you can carry on with the tram until the airport. It also has easy walking access to the old town and evening walks over the Golden Horn mingling with the fishermen on the Galata Bridge are a very cool past time.

The Location

The Location

The Galataport project, which is still a few years away, promises to add further shine and star power to the area, with its plan to offer the multitude of services and attractions necessary to keep the mega-liner crews and passengers entertained.

Although many of the buildings of Galata still require refurbishment, when one considers that this neighborhood was practically untouched by this trend all but 10 years ago, the pace of change is frankly staggering and shows little signs of abating. It leaves little doubt that this will become one of the most well-known tourist areas within the next 10 years and will become an almost household name such as Montmartre, Soho, or Las Ramblas.

Kiva Restaurant

Kiva Restaurant

Given this trajectory it is quite predictable that real estate prices have risen dramatically in the past years and seem set to move upwards, albeit at probably a more subdued speed. As there’s not much scope to create more building stock in these areas we expect to see a similar capital growth progression as Cihangir with possibly a 5-7% per annum property price inflation. Rental returns are good but not eyepopping coming in at approx 6-8%, though short term holiday lets can be much better if done well.

One of Lilimonts slick offerings!

One of Lilimonts offers!

Currently, for the in-demand properties, one could expect to pay a minimum of 2000 Euro/ sqm and go well upwards of that for anything with a view. The highest square meter price I have on record is about 8000 Euro/ sqm for a property with a lift, stunning views and an inspired architect’s interior finish.

The rents follow suit, with nicely finished properties of between 60-80 sqm costing a minimum of 1000 Euros monthly with peak prices for a very high end Bosphorous View Penthouse reaching 5000 Euros. Expect a good average sized 2/3 bed apartment to cost 1500 – 1800 euros per month.

If you fancy a Galata pad, get in touch with me – www.lilimont-istanbul-realestate.com

The Neighbourhood Watch

As I’m sure we all now know, Istanbul is fast becoming a vast metropolis on a scale
only matched by the world’s biggest cities. This can become a headache for
the-would be property buyer as it poses the question of where?
Where indeed?- In our experience, it’s best to start in the center, as with
a ripple in a pond. It is no real surprise that the centers of the world’s
major cities are usually the most valuable, New York/Manhattan,
London/Mayfair, etc. The out-skirts of cities have their own potential and
can often, in the good times, outstrip the performance of the historic center,
however, in the down times it is downtown property that most often holds its own and
resists the dip. This most definitely rang true in Istanbul in 2009.

oh.....I get it..

I find visuals always help….

Once you have made the decision to target property in the center of Istanbul the
overwhelming nature of the city becomes more manageable and smaller
neighbourhoods can be identified. If we take Taksim Sq as the center then
immediately south we find Beyoglu comprising predominantly of the
neighbourhoods of Cihangir, Galata and Tarlabasi. Go South again across the
Golden Horn and into the ancient Byzantine town and heavy tourism with the
neighbourhoods of Sultanhammet and Balat. North of Taksim we move into Sisli
and Besiktas with some very upmarket neighbourhoods such as Nisantasi.
Finally further North into the expensive modern semi-suburb neighbourhoods
in Levent. All of these neighbourhoods are accessible and within close
proximity to (or sitting on) the historic sites, the Bosphorous and
nightlife. As with other International cities, the very fact history is
within most of these neighbourhoods adds integrity and long term capital
value to real estate.

The bit we're talking about

The bit we’re talking about

But which neighbourhood suits you best? Is the purchase for lifestyle or purely for investment? – Over the next few weeks I will take a detailed
tour of each separate neighbourhoods mentioned above and what I consider to be the
highlights and qualities of that particular city zone. This will be a unique
exercise and will offer an exclusive insight into their separate cultural milieus,
local flavoring, my take on their history, the pros and cons of actually
living there and finally (when buying istanbul property) the ‘all-important’ what you get for your money in terms of square meter pricing.

In time I will progress this “undercover” behind the scenes survey to other areas of the city
but for the moment we have more than enough to be getting on with.

Cihangir will be our starting point. keep tuned in.

www.lilimont-istanbul-realestate.com