The 3rd of November 2005 was a historic day for Turkey as the country finally began accession talks with the EU. This is only the beginning of a long process— experts believe the negotiation process may take anything up to 15 years—and significant obstacles still stand in the country’s way, not least opposition to the Turkish bid from within certain member countries.

But according to opinion polls, nearly 70% of Turks support joining the EU, and the man at the country’s helm, prime minister Tayip Erdogan, has proved his strong commitment to the EU process by pushing through some difficult reforms to qualify for the start of negotiations.

As the leader of the mildly Islamic AK Party, Erdogan gained is political spurs as mayor of Istanbul, a position he held for nearly a decade before his party won the national elections of 2003. So where does Istanbul stand as the government begins accession talks?

The city’s economy has recovered well from the crisis and currency devaluation of 2001, with GDP growth of 9.9% in 2004 and an expected
5.5% for 2005. Istanbul’s population of 15 million is young and growing rapidly, with an estimated 700,000 new arrivals each year.

Not surprisingly, the commercial and residential property markets are booming. A leading real estate consultant recently quoted increases in value of 45-55% across the city. Despite this, property prices are still far lower than in other major European cities, at an estimated city-wide average of $1,200 per square metre, promising significant room for future growth. Inner city areas like Beyoglu and Galata are being rapidly gentrified while the skyline is transformed by high-rise office buildings and new housing developments spring up in the suburbs. There are even rumours in the press about an ambitious new project, backed by a leading Arab developer, to build the world’s tallest building as part of a new office park.

The city’s transport infrastructure, tested by the unique geography of the city and groaning under the pressure of getting 15 million people to work and school, is enjoying major investment. Projects to extend the tram system and the metro line south beneath the Golden Horn are now well advanced.

The mood is upbeat and, despite a few glitches such as the bomb attacks of 2003, foreign investors and businessmen are pouring into the city in unprecedented numbers. Istanbul is developing its role as a hub for regional commerce, a centre for manufacturing and a gateway to the rapidly emerging domestic market—and possibly, some day soon, the EU too.