Measuring the Impacts of the Progress of Cities on Real Estate Values

Investors, companies and people who have savings invest real estate because the expectation of the increasing future value of it. The correctly determination of the real estate value is important. The impact of the development of cities generally is not taken into account to detect the value of real estate. This study aims to determine whether there is a significantly difference in the investment of real estate to the south and west of the cities rather than other parts of that. For this reason, percentage change in real estate value per m2 in the five largest cities of Turkey, is analysed according to geographical location and direction of cities. As a result, the return on real estate investment at the south and west of cities is a significantly difference compared to investment in other parts of those.