Turkish property prices are being predicted to show a steady increase this year, as prices of new property increased by 9.88% in November 2011 year-on-year according to the REIDIN New Home Price Index. The index also showed property on the European side of Istanbul increasing by 1.17% month on month, while property on the Asian side of Istanbul increased by 0.47%.
Property prices for existing homes increased by 0.89% throughout the country, and rents also grew on the month by 0.7%. This was made up by a 1.08% growth in Istanbul, 0.55% in Ankara, and 1.14% in Izmir. Only Bursa showed a slight decrease of 0.11% in December last year.
Rental prices also showed an upward trend, increasing by 0.7% on the month, with Istanbul rents up by 1.09% and Izmir rents up by 0.39% in Izmir.
The main story in the data though is Antalya, which saw the biggest growth in existing home prices in November at 1.27%, and the biggest growth in rents at 1.27%.
The Turkish economy is expected to expand by around 4% this year, and it is still seen as being a good place in which to invest, especially on the European side of Istanbul. The University campus is a top tip, as the infrastructure is currently undergoing significant improvement.
Bargains can be found in the suburbs, but the best place for rental yields remains the city centre.
Antalya and Fethiye are regarded as being good places for resort properties, as is the lesser-known resort of Kalkan. It’s possible to get rental yields of up to 8%, with average yields being around 6%.