If you are thinking of investing in Turkey then Istanbul property pays the best interest.
Istanbul is an exceptional investment option with the highest capital growth rate of any European city with a 2014 forecast of between 10-15%. Factor in the high rental yields of 6-11% per annum plus the chronic housing deficit in Istanbul, allied to a population that is growing faster than any other European country (it is estimated that the current 73 million population of Turkey today will increase to 83 million by 2023) then Istanbul property investment is a golden opportunity.
The demand for Istanbul housing is greater than the supply, with some 250,000 properties required in Istanbul by 2015, to satisfy a population approaching 13 million and that is expected to break the 16 million barrier by 2023.
Turkey’s credit rating has recently been increased by three financial institutions (Bloomberg) and is well on the way to becoming a full member of the European Union, in addition to Istanbul being rated as the fastest growing city in the world in 2010 (Nuwire).
Istanbul property is at the centre of everything in Turkey and is the main beneficiary of FDI, enjoys the highest total of net migration, sees the highest rents and the highest prices. Whilst most Eurozone countries will see zero point as a GDP achievement, Turkey’s GDP saw a 4% growth in 2013 and a mean average of 5.2% between 2002/2011 which further growth expected in 2014 (OECD Turkey).
It is evident that Istanbul is a booming investment city with Turkish banks now offering mortgages to EU and foreign buyers, whilst multi-national corporations – such as Coca-Cola and Microsoft –have chosen Istanbul in which to locate their regional head offices.
Istanbul was the European Capital of Culture in 2010 not just for its variety of sophisticated restaurants, cafe culture, arts and entertainments but also for its Blue Flag beaches.
A new property law, to enable foreign investors to purchase real estate in Istanbul and other areas of Turkey, was passed in May 2012 affording more options that were hitherto only available to local investors.