The new Istanbul Canal project is considered one of the projects that plays a pivotal role in Turkey and the world, and it has become a topic of local and international talk and controversial since the beginning of its idea as it will change the form of maritime transport in Turkey and around the world.

 Below we will learn more about this project: its objectives, results and impact on the real estate investment market in Istanbul…

The history of the idea:

The idea of ​​the project appeared for the first time in 2011 when it was presented by Turkish President Erdogan, who was then prime minister. The idea of ​​the project was included as one of the plans of his Justice and Development Party in Turkey’s Vision 2023, in which it seeks to make Turkey one of the 10 most powerful economies in the world by the centenary of the establishment of the Turkish Republic.

What is the new Istanbul Canal:

It is a waterway that will be dug and established on the European side of Istanbul. The canal extends from Buyukcekmece Lake on the Sea of ​​Marmara in the south to the Black Sea in the north.

The canal is parallel to the Bosporus and is approximately 30 km away from it, and the aim of its construction is to make it a passage for ships and marine tankers to relieve the burden on the Bosphorus Strait.

The foundation stone for the channel was laid and work on it has already started in the middle of last year 2021.

The canal is 45 km long, 21 meters deep, and 275 meters wide.

The cost of constructing the canal was estimated at approximately $15 billion, and the total cost of the project, which also includes a new residential city around the canal with a capacity of 500,000 people, is $25 billion.

One of the plans to complete the project is constructing 6 bridges to connect the highways on both sides of the canal, and the project will contain a port along the canal for small boats.

The expected duration of the project until its completion is 6 years, i.e. in 2027.

Why Istanbul Canal?

• The main reason for establishing the canal is to reduce the load on the Bosphorus Canal, which is considered one of the channels with the highest navigation density around the world, which is the reason for the high percentage of pollution in it. President Erdoğan is planning to make it more focused on tourism goals as it is located in the middle of Istanbul’s historical districts.
• Another reason for the establishment of the canal is to compensate part of the economic loss incurred by Turkey due to the Montero Agreement, as the total control of the canal will be in the hands of the Turkish government alone.

The importance of the canal:

• It will significantly reduce the load on the Bosphorus Strait and it will become a secondary line for trade, which supports the government's plan to turn the Bosphorus into a historical and tourist area.
• Reducing the pollution rate in the heart of Istanbul, because the Bosphorus strait passes from the middle of the city, and thus was highly affected by the pollution resulting from the traffic of ships.
• The canal is expected to bring big profits to Turkey and will cover its construction costs in just two years, which puts Turkey economically in a different position globally.
• The canal will give Turkey a significant competitive advantage in the international transport trade, 75% of which passes through the seas.
• Studies indicate that the new Istanbul Canal will be 13 times safer than the Bosphorus Strait in terms of navigational safety due to the presence of surface and underground water currents, which raise the risk of collision.

The impact of the Istanbul Canal on the real estate market:

• One of the most important consequences of the construction of the new Istanbul Canal is the effect it will have on the real estate market in the surrounding areas, as the project has already become a magnet for local and foreign investments for infrastructure and construction projects on the beaches of Marmara and the Black Sea, and will also increase the population density in the region due to the large number of projects The real estate and investment currently being established in the region, which attracts many entrepreneurs around the world due to the high-end nature of the region and the plans of high-end real estate and villas being implemented, and also because of the city that the Turkish government will establish on both sides of the canal, as stated by Turkish President Erdogan.
• The canal will provide a new space for urban transformation and create new job opportunities, which will make that area a vital commercial center filled with business management centers and companies and will mean the movement of a large number of residents to the surrounding areas. It has a high return on investment.
• When the canal is completed, a new island will be formed in Istanbul along a large coastline. Therefore, capital owners and construction companies interested in developing the real estate sector in the current period seek to provide various facilities to investors by offering apartments for sale in comfortable installments and some tax exemptions that aim to Increasing real estate investments in the region.

Edited By Aldar Real Estate ©