The Suburban dream of Istanbul is boosted by debt

Share on Facebook0Share on Google+0Tweet about this on TwitterShare on LinkedIn0

The sudden rise of the economy and the demand of the consumer have resulted in the flourishing of suburbs on the margin of Istanbul.

Not more than 4 decades ago, on seeing at the suburbs of Istanbul a person have said a place of squatter houses. Back then, the only aim to own a house to have a shelter overhead and from that day, the population of the city has grown tremendously, from less than one million in number to 15 million today. The day is not too far when Istanbul will be declared as one of the most populous metropolitan city of Europe, leaving behind London and Moscow. The more changes in population have been witnessed in the suburbs of the Bosphorus, from either side.
The new wave of Suburbanism started somewhere in the year 2000 and fasten up severely in the middle of the tough economic growth, risen up living of standards, and the policies released by the President Recep Tayyip Erdoğan that directed investment into the real estate and the construction. At the same time, the demand of the consumer has reached the heights. In the regards, the Economist Mustafa Sönmez has written, “In Turkey, today, a household that is loaning the unseen culture followed in the year 2003.”

This has changed the preconceived notion of the housing of Istanbul in particular. Today, in Istanbul, a house has turned out to be the most important asset, and the untouched suburbs have become a new center of owning a commodity. This owning of the commodity in the suburb areas has become a ground of competition for the middle class people, who look forward to own multiple of houses as a way to financial security.

Based on the research which was done to inspect the lifestyle followed by the people of suburbs owned by Istanbul when the urban transformation has overlapped giving rise to the Social Polarization and Indebtness. People living in the suburbs of the city like Kemerburgaz Göktürk, which has been a place of giving a shelter to many communities of simple houses along with the luxury condos, and Ataşehir and Bahçeşehir, where people are spending their lives in highly raised condo buildings.

In an interview, a high-profile manager belonging to the construction sector told, “It’s all the matter of the powerful relations. People being in debt are busy showing the fake success. Social media sites are a way to hide the debt of the emerging new middle classes.”
The statement given by the manager is considered to be an incredible one as it tracks the current transformation that has taken place in Istanbul and has done better than any academic work could have done.

A recent research that was inspecting two groups of people of the new middle class category of Istanbul took out some of the stunning facts. The first group was able to be in contact with some of the elites of the country. These people can speculate on the property because of their high position or the wealth they inherited.

The group of people, as seen generally own one house in which they live and they invest in other properties and sell them at a profit, as the prices of real estate have risen dramatically, for about 20 % a year.
The other group of people are the ones well-educated, working under the corporate sector aspiring to own a house as soon as possible, for the purpose to live.

Both the groups have one thing in mutual and that is to rely on credit, mainly in the form of rents, but with the difference that one group is using the credit to invest and the second one is to buy a house to dwell. The latter group may turn to investment once they’ve established a stable financial security.

Both the situation have led to the formation of the new debts, based on the lifestyle expectations.
The result of the indebtedness has brought in many effects that are new to the society and the people of Turkey. An increased risk-taking factor, increasing rate of borrowing the investment, and coming into view the different communities, where people can live their life in much secured ambiance.

However, the effects can be major on the day to day life.
The manager that was interviewed, is too planning to shift into the suburb soon, said, “people generally, living in the suburban areas invest in the houses by rent credits. They either work in a financial or marketing industry, they are, most of the times, identified as the new middle classes of Istanbul. Their most of the life passed in paying their rent debts, this made them to stay at home most of the nights and during the weekends, and by chance if they go out, it generally is the shopping mall or a friends’ place.”

The people new to the suburbs are curious to maintain the political stability because they are afraid that an economic crisis can cause them to lose their jobs and this will make them unable to pay their debts off. Living in suburbs needs a car and many times people buy them on credit as well.

The life in suburbs area is meant to be under debt, because of the reasons explained above and this cause the formation of new debts, in hope to lead a new lifestyle. In many other interviews based on the same topics have recorded people saying that, “The nearing future of Istanbul will be based on the suburban resident to a great extent will act as a major factor, because owning a house is boosting the social and economic factors of everyday life.”

You may also like...

Leave a Reply

Your email address will not be published. Required fields are marked *