Urban transformation: Effects of large housing investments on nearby property values in Atasehir Istanbul

Abstract

Rapid growth and land use development stimulates urban transformation and results in changes in real estate prices in developing countries. In addition, since the mid-1990s there has been a shift in the governance of urban land and large housing markets in Turkey in the direction of neoliberal policies. As urban space becomes the most profitable source of investment and as cities adopt aggressive place marketing strategies, it is becoming difficult for average urbanites to own their living space because of increased real estate values. Large housing investments are seen as mechanisms through which neoliberal policies are implemented in urban areas. This study investigates the effect of large housing projects on nearby property values in Istanbul. The changes in average land prices in the nearby neighbourhoods of a large housing investment are investigated throughout different time periods. These changes signal a shift to the neoliberal policy that extends market forces to all domains of social life. Urban transformation can be viewed either as detrimental to the overall quality of urban life or as a positive force in cities today. Either view is usually dependent on what socio-economic group is chosen. What has taken place around Atasehir might also be termed as gentrification. A comparison of the changes in land prices in the nearby neighbourhoods and other neighbourhoods in better locations illustrates that the difference in the nearby neighbourhoods is higher than in the other neighbourhoods. The results of the study can be useful for urban planners, investors and policy makers.