BLOG The “New” Grand Istanbul Airport and its estimated effects on Turkish economy

Grand Istanbul Airport

Istanbul Grand Airport (New Airport of Istanbul) is going to be the biggest and one of the most strategic airports in the World. It is reported that 22,500 people are now working at the airport and that this number is likely to rise to over 30,000 in June when the process goes ahead in the first quarter of 2018. The additional household income to be created by the new airport is expected to reach US$ 4 billion.

It is also reported that the international air transportation sector has grown by an annual average of 5.6 percent in the last 10 years as compared to a growth of about 14 percent in Turkey. The sector with a size of 2.2 billion dollars in 2002 reached a size of 23.4 billion dollars by the end of 2015, on top of the fact that employment also tripled in the same period and it is estimated that this economic gain in the sector will continue in the coming years.

Talking about the development of the Turkish aviation sector, the number of passengers reach 174 million passengers in domestic and international lines last year. Authorities expect that this number will increase to over 230 million by the end of 2018. At this point it is also emphasized that Istanbul airports are among the first 3 most growing airports in Europe.

The project is known to be "The world's largest build-operate-transfer project" so far.  Flights are to be scheduled from Istanbul New Airport to 350 destinations and that the investment of the first stage of the project is continuing. It is estimated that 90 million passengers will be able to benefit from concerned services when the first stage is accomplished.  Following completion of the first phase the target will be to start the next phase which is expected to raise the capacity to 150 million with an ultimate target pf 200 million passengers, eventually.

The investment cost for the airport which will have a terminal building with a closed area of ​ 1 million 300 thousand square meters is estimated to be 10.2 billion euros. The plan is to achieve a rental income of about 25 billion euros and thus realize the world's largest build-operate-transfer project, both in terms of investment and rental income.

Authorities have stated that when all phases of the airport are completed, it will have 6 independent runways, 16 taxiways and 500 airplane parking capacities suitable for the operation of all types of aircraft. There will be 3 separate terminal buildings to be connected with own transport rail system, 280 smart passenger bridges, 3 technical blocks, air traffic control tower with an apron of 4.5 million square meters, in total as well as VIP halls, cargo and general aviation terminal and a state guest house. On the other hand the giant project will cover other facilities such as parking lots, duty free areas, hotels, shops and mosques .

 The project is estimated to have a truly major impact on the economy and tourism in specific with an additional immediate employment of 100,000 new jobs. Moreover, it is foreseen that the giant project will have created direct and indirect employment in the range of 195 thousand to 225 thousand jobs by the year 2025.

With the completion of the airport, direct and indirect employment of 200 thousand people will be provided and the additional income of households will be about 4 billion dollars meaning a huge contribution to the national economy with a positive impact of 4.2-4.9 percent on the national income. This is based on the forecast that 10 percent of the 90 million passengers would be tourists spending an average of USD 700 per person.

On the other hand the “New Airport” is expected to strengthen the rivets that will connect the world to Turkey and Turkey to the world and it will certainly contribute to Turkey’s position as both a bridge and a center in the region. Istanbul New Airport will be one of the driving forces of Turkey's growth story for the next 50 years.

Tolga Ertukel, Founder of Turkey Homes says: “ The construction industry in Istanbul is one of the major revenues for the country. With ever increasing demand for housing in Istanbul and quality newly built properties close to the international airport and services, we are already seeing a rapid increase on land and real estate prices near the Grand Airport construction area. This trend is also making a huge impact on prices in European suburbs such as Beylikduzu, Esenyurt, Bahcesehir and Basaksehir districts. Istanbul is expanding vastly and expanding fast, along with demand for real estate..''