Property investors looking for an exciting new market to tap into in 2014 should consider Istanbul in Turkey, and here are five reasons why:
1. Turkey’s economy is thriving
Turkey is expected to be the fifth fastest emerging economy in 2014 and the fastest growing in Europe, with GDP growth expected to be between 3.5 per cent and 4.5 per cent in 2014. Istanbul will be at the centre of much of this economic growth, these figures are a good indicator for those seeking low risk property investments in emerging markets.
2. Property prices continue to rise
There is little sign of property price rises cooling in Turkey’s famous old city with domestic and international demand continuing to put pressure on desirable areas of the city. Istanbul has been described as the ‘new London’ for investors from the Middle East with the city offering similar levels of capital growth, only without the longer journey times.
3. Turkey is moving closer to joining the EU
This month, Turkey reopened talks with the EU following a three year freeze in negotiations. The well-publicised crackdown on protestors at Gezi Park may well have held back progress and strengthened the case for those countries opposed to Turkey joining the EU, but it is still a positive sign that talks have resumed. If Turkey joins the EU, its property market may well benefit as was the case when the Czech Republic and other Central and East European countries joined in 2004.
4. High rental yields in Istanbul’s suburbs
Even after years of property price inflation it is still possible to achieve rental yields of 8 per cent or more in areas beyond the city centre. Central Istanbul and fashionable areas of the city overlooking the Bosporus can be expensive, but look beyond the centre to outlying districts and rental yields can be higher due to a combination of low prices and high demand for rental property.
5. The Turkish currency has declined in value against the pound and the dollar
The Turkish Lira has fallen 13 per cent against the US Dollar in the past 12 months and the Pound is worth 8 per cent more Turkish Lira than in 2012. This means property in Turkey is cheaper to buy with those stronger currencies than it has been for some time. There is one note of caution however – some analysts are predicting that the Turkish currency is more likely to see a rise in value against these currencies within the next 12 months.
Contact property specialist Spot Blue for more information on buying property in Istanbul and popular resorts in Turkey: https://www.spotblue.com/, +44 (0) 20 8339 6036.