British businesses and property investors are taking a keener interest in Turkey thanks to the first ever rail tunnel linking Europe and Asia, which has opened in Istanbul
Turkey is expecting a surge of business from British companies and property investors, together with increased exports from the UK, after opening a new tunnel linking Europe with Asia.
The eight-and-a-half mile long Marmaray tunnel is the first underwater rail link between two continents.
It runs underneath the Bosporus, the strait that divides the European and Asian sides of the city of Istanbul, which is home to around 16 million people.
Before the tunnel opened on Oct 29, the only way to cross was via one of two bridges, which suffer from severe traffic congestion due to two million people using them daily.
With the Chinese government planning a high speed rail network that would connect much of Asia, the tunnel raises the prospect of travelling by rail all the way from Beijing to London via Istanbul in future.
It has already brought cheer to property investors in the region, with prices steadily rising since the scheme was announced in 2004.
Last May, Turkey relaxed its property laws for foreigners, to boost its international appeal. That move led to the number of foreign buyers more than doubling during the first six months of 2013. Foreign property owners automatically qualify for residency permits.
Julian Walker, director at Turkish property specialist Spot Blue International Property (www.spotblue.com), said: "In areas with stations along the route of the Marmaray project, property prices have already increased on the back of the imminent improved transport links – just as areas of London are already benefiting from the Crossrail project."
He added: "This sends a message to the world that Turkey is investing heavily in improving its infrastructure in Istanbul and beyond, making it a more attractive place to run operations from and do business.
"Most British expats in Istanbul are there with work, as an increasing number of international firms set up operations in the city and bring staff witih them. Better infrastructure, including transport links around Istanbul and beyond, and its exciting lifestyle, make it an increasingly appealing place for young expat professionals to spend time.
"Add to that the city's proximity to Asia, the Middle East and Europe, and it's fair to say Istanbul is on course to becoming a financial and trade hub for foreign expats, including Brits, comparable to Dubai, Hong Kong or Singapore."
Leigh Turner, the consul general and director general of UK Trade and Investment in Central Asia and South Caucasus, said: ''We have seen a steady flow of UK companies in recent months attracted by the continued strong growth of the Turkish economy – growing at an annual rate of 3.7 per cent in the first half of 2013.
"British goods exports to Turkey were up 11.3 per cent in the first eight months of 2013, so the opportunities are definitely there and the Marmaray tunnel can only help fuel further growth.
"We’re also excited about opportunities for growth in Central Asia and the South Caucasus, where we in Turkey are working with our embassies in the region to help encourage British companies to engage further."
Turkey receives around 2.5 million British visitors a year, according to the British Embassy in Ankara, and up to 40,000 Britons live there full- or part-time.
