Istanbul has been ranked the number one city in Europe for property investment for the third year running in Pricewaterhousecoopers Emerging Trends in European Real Estate report for 2012.

The report contains the findings from a survey of 600 of Europe’s biggest property investment players, on the prospects for property investment across Europe’s greatest cities in three categories: the performance of existing investments (properties), prospects for acquisitions, and development opportunities.

Last year, Istanbul was ranked the number one tip for development opportunities and acquisitions, but lost out to Munich on the performance of existing investments. This year though Istanbul property won the gong on all three counts, making it firmly the number one tip for commercial property investment this year.

Within that the investors tipped retail as the one to go for, although only slightly less respondents tipped apartments and hotels as the best sectors for investment.

Pricewaterhousecoopers is focussed only on commercial property investment, but their report is still a good guideline as to where is hot for residential property investment as well. Istanbul is being tipped for commercial investment because of growth in the economy, growing consumer confidence, growing consumer spending and growing employment. For the same reasons more and more people from across Turkey are moving into the city to find work.

This combination of rising population numbers and the rising affluence of the population is causing unprecedented demand for apartments and townhouses in the city. In fact, according to developers they just can’t build fast enough to meet demand. So, with Istanbul and Turkey property still among the cheapest in Europe, it presents a ground level opportunity that investors are keen to pounce on — especially with the continued difficulties facing the Eurozone.

Source: Spot Blue Overseas Property