Highway tunnel under Bosphorus pushes Istanbul real estate prices up

Highway tunnel under Bosphorus pushes Istanbul real estate prices up

The Eurasia highway tunnel under the Bosphorus has increased real estate prices in nearby districts long before its opening date on Dec.20., with rental prices rising by 25 percent and sales prices rising by 41 percent in a year

The construction work on the Eurasia highway tunnel, which will connect Istanbul's Asian and European sides under the Bosporus Strait, has pushed up real estate prices up in nearby districts. Scheduled to open on Dec. 20, the tunnel will reduce the travel time between the Kazlıçeşme and Göztepe districts - the former being on the European side and the latter being on the Asian side - to 15 minutes from 100 minutes. Like other mega infrastructure projects in Istanbul, the tunnel is expected to alleviate the heavy traffic load in the city.

A study conducted by the TSKB Real Estate Appraisal company revealed that the project has led to an augmentation of value in real estate prices in nearby districts over the past year, with rental prices rising by 25 percent and sales prices rising by 41 percent. The project has had the greatest impact on the real estate market in the Acıbadem, Koşuyolu, Ünalan, Haşanpaşa and Merdivenköy districts on the Asian side and on the Cankurtaran, Yenikapı and Yedikule and Zeytinburnu districts on the European side. TSKB Real Estate Appraisal General Manager Makbule Yönel Kaya said the project has greater effects on the real estate market on the Asian side than the European side, adding that the Zeytinburnu and Bakırköy coastlines will also increase in value. The price of branded housing projects, which are under construction on the two coastlines, have reached TL 25,000 per square meter. When the ongoing construction work on the Marmaray station, Eurasia tunnel and coastal road is completed, the number of lanes will increase to eight - which will lessen the traffic load.

Stressing that housing prices will rise in the Güngören, Bahçelievler and Merter districts on the European side in the short term, Kaya stated the project will have a positive effect on the transformation of industrial sites into housing and mixed-use projects as a result of urban renewal work in the Merter, Merkezefendi and Davutpaşa districts. He also said the Eurasia tunnel will boost the efficiency of transportation between Istanbul's two airports, adding that the tunnel will allow foreign tourists who do not want to stay in the immediate vicinity of Atatürk Airport to go to the Asian side easily.

Transport, Maritime Affairs and Communications Ministry and the General Directorate of Infrastructure Investments authorized Eurasia Tunnel Operation Construction and Investment A.Ş. (ATAŞ) to design and construct the tunnel. Buying the right to operate the tunnel for $1.2 billion, ATAŞ will transfer the tunnel's operation to the state after 24 years and five months of operation.

It is expected that an average of 90,000 vehicles will pass through the tunnel on a daily basis in the first three years of operation, and this figure will rise to 130,000 after the first three years. The tunnel will be used by automobiles and minibuses travelling between Kazlıçeşme and Göztepe, however, it will not serve heavy vehicles, motorcycles, bicycles and pedestrians.

Passage fees will be $4 plus VAT and for automobiles and $6 plus VAT for minibuses in one direction in the first year of commissioning. The total length of the tunnel will be 14.5 kilometers, including a 5.4-kilometer section being built under the Bosporus. The tunnel consists of two storeys, both of which have two lines to be used by automobiles and minibuses.

The deepest section of the tunnel under the Bosporus is constructed under 55 meters of the bottom of the sea and 106 meters below sea level. The project consists of three segments on the European side, Bosporus strait and Asian side. The U-turn on Kennedy Street, which runs between Kazlıçeşme and Sarayburnu, will be constructed as an underpass grade crossing which is accessible to the disabled.

The existing undersea road of nearly 5.4 kilometers, including 2x3 and 3x2 lanes, will be expanded to 2x4 lanes. Two bridge crossings and a pedestrian overpass, which will also serve the disabled, will be built on the D100 highway. The existing road of nearly 3.8 kilometers will be expanded to 2x4 and 2x5 lanes from 2x3 and 2x4 lanes.


Source: http://www.dailysabah.com/real-estate/2016/10/04/highway-tunnel-under-bosporus-pushes-istanbul-real-estate-prices-up