Restored buildings in Istanbul's hip Beyoğlu neighborhood have broken sales records despite the global crisis, thanks to the area's historical importance and central location.This is due, in large part, to the fact that developers have renovated 3,500 of the 7,000 decrepit buildings. These newly restored buildings accommodate studio units, which generally fetch higher rents and have a high resale value.These renovated buildings, which are located primarily in İstiklal Street and spread throughout Galata, Tarlabaşı and Cihangir, bring in anywhere between two to four times as much as the initial investment. The number of renovated buildings in Beyoğlu increases daily, as both foreign and domestic investors notice the possibilities for profit.

Restoration prices go up

The sharp increase in the occupancy rate of renewed buildings is clearly visible, so too is gentrification of the neighborhoods and the inevitable rise in prices. Prices for apartments that range between YTL 150,000 and YTL 200,000 that are not fully developed, can get as high as YTL 500,000. In buildings and neighborhoods where there is a view of the sea, prices are comparable to those found in the Bosporus corridor. The prices are even steeper on streets where urban renewal has taken hold. Rents around French Street, near Galatasaray, hovered

around YTL 400 for a 100 square meter apartment before the area underwent major renewal. Now the same unit may fetch anywhere between YTL1200 to YTL1500. Buildings valued at roughly YTL 250,000 before renovation are now worth close to YTL 2 million.

Commercial spaces are also getting their share of the real estate boom with rents starting at around YTL 2,500. On İstiklal Street, store rents range from YTL 12,000 to YTL 40,000, with sales prices varying between YTL 2 million to YTL 5 million. In Cihangir square, prices per square meter start YTL 3,000.

When Tarlabaşı Avenue was widened to ease the traffic problem in 1988 and İstiklal Street became pedestrian only in 1990, the stage was set for the transformation of Beyoğlu. The metro line, completed in 2003, and development plans like the French Street renovation that took place in 2004, injected life into Beyoğlu.

The Beyoğlu Municipality has also taken important steps to ensure easy development in the area. It has recently become possible for building owners to undertake small repairs without going to the Council of Memorials, which governs the conservation and renovation projects on historic buildings. The municipality is also continuing its Beautiful Beyoğlu Project, which encompasses urban development and renewal projects.

The Beautiful Beyoğlu Project has lead to big changes in the area, commented Beyoğlu municipality president, Ahmet Misbah Demircan. The restoration process has gotten much easier and much more efficient, he continued, adding the approval speed for a simple repairs permit is not as long as it used to be. 7,000 buildings have received notices of approval for restoration, repair and renovation projects. 3,500 of these have been completed.

The Beautiful Beyoğlu Project also encompasses new buildings. For all these new structures the municipality undertook the task of designing the exteriors. So our area has become even more beautiful, Demircan said.However, it seems purchasers of the historical buildings in Beyoğlu are not concerned with how old these buildings are. Instead demand for these buildings depends on other aspects, including the durability of the building, the socioeconomic status of other residents in the area, the proximity to art studios and the number of renovated buildings in the vicinity. House hunters are looking for certain features, such as bay windows, sea views and rooms with high ceilings.