Distribution of Local House Prices in Istanbul: Interaction between Public Investments and Urban Regeneration

In this paper the factors that are affecting the local house market in the sub districts of Istanbul metropolitan area are studied. 5 sub-districts that surrounds the historical peninsula around the Golden Horn selected in order to examine the house price distribution that are mostly surrounded by regenerated public spaces. 20 years ago Istanbul metropolitan municipality started to decentralise the industrial areas around the Golden Horn. Public investments on the decentralisation and environmental cleaning processes cost more than 650 Million $ on last 10 years. Data collected from the local real estate brokers and Internet listing services. The findings are slightly significant in the housing attributes than to the surrounding amenities. In the historical parts values are highly affected by UNESCO conservation projects and foreign buyers that lift up the market without any significance on our model; like proximity to public open space, water bodies or green spaces. Housing values are affected mostly by age and proximity to conservation sites. Model also explains price difference between the shorelines of Golden Horn. Docks and Military Bases occupy larger proportion on the northern parts of study area surrounded by illegal settlements. Istanbul Metropolitan Municipality plan to start a new PPP Urban Regeneration Projects in our study area. Findings of our research suggests and supports the location of regeneration areas could provide benefits to citizens and perform better tax income revenue to the municipality as well.