Turkey's popularity continues to ride high with the nation where east meets west recommended as the best place to invest in property in Europe by the Global Property Guide Property Recommendations mid 2010 report. Released this week, the expert report reviewed major global property markets, focusing on how much appreciation in value a property in a certain location is likely to see as well as the future earnings it will yield.
According to Global Property Guide data, gross rental yields are currently at 5.48% with significant potential for growth, especially in primary cities such as Istanbul where property remains affordable and demand high.
Steven Worboys, MD of Experience International, the Turkish investment property experts, comments, "I believe that Turkey, and Istanbul in particular, presents one of the most attractive property investment opportunities available in Europe today and it's pleasing to see that the latest Global Property Guide Recommendations report supports this.
"Rental yields are currently higher than many other traditional second property destinations in Europe including Italy (5.04%), France (3.85%), Spain (3.81%), Portugal (3.63%) and due to the significant shortage of housing, currently at 5.5 million housing units by 2015 (according to the Central Bank of the Republic of Turkey) rental yields and capital gain are forecast to increase further."
In addition to robust rental yields, Global Property Guide recommends investing in markets where high GDP growth is expected. Turkey was not affected as greatly as many of its neighbours by the financial crisis with 6% economic growth recorded in Q4 2009, up to 12% forecast by the Turkish Finance Minister for Q1 2010 and 6.7% p.a. between 2011 2017 by the OECD, the highest growth forecast of all member countries.
Currently property can be purchased off-plan in Istanbul at up to 50% of completed prices. The sought-after No1 Knightsbridge development for example in Beylikduzu, on the European side of the city offers studio, 1, 2 and 3 bedroom luxury apartments from just £41,000 with a 2 year protected rental guarantee of 7.5% and up to 70% finance.
Source: Property Magazine International