turkey property

I have been following the progress of the Turkey property, and in particular, the Istanbul property market, for a number of years now. Istanbul is one of the fastest growing emerging markets in the world. There are clear economic reasons for continued growth in the future.

Would you like to be notified of new investment deals as soon as they become available?

Subscribe to our newsletter "Property Investment Deals" by entering your email and name in the form below:

Don't worry - your e-mail address is totally secure. I promise to use it only to send you "Property Investment Deals".

My aim was to wait until mortgages were available to foreign investors before entering the market personally. With the recent availability of 65% LTV mortgages investors can now benefit from the use of leverage in a rapidly growing economy.

I was waiting to find a development that was located in an area of excellent rental demand. The proximity of the development close to the airport, Formula one racing track, and two universities makes it a hard location to beat. Property values increased by 33% last year and similar figures are set for the future due to the availability of mortgages to the local population.

Turkey has an expected GDP of $382 billion, furthermore over 45% of the economy is currently un-accounted for so this figure is likely to be much larger.

Turkey has also been ranked among the top 7 emerging markets. PriceWaterhouseCoopers regards Turkey a faster growing emerging market than China, India and the rest of the E7 countries.

The economy and political climate of Turkey is more stable than ever. It has been a member of the UN since 1945 and a member of NATO since 1952.

Furthermore Turkey has a closer economic and political relationship with the EU than any other non EU country hoping for admittance.

This for me makes the Turkey property market an excellent one to target - but where should you target.

I am not keen on newly created coastal resorts with little resale potential, and over supply of rental properties.

I always look to the major cities as this is where the majority of jobs and money will go.

Istanbul is a city with massive growth potential for the future. It is the financial capital of Turkey and is split in half by the famous Bosphorus river. Major multinational companies have relocated their workforce to Istanbul due to its strategic position as a bridge from the eastern to western world.

The demand for residential units in Istanbul is massive with a shortfall of 250,000 units per year - and this reason alone means when looking at the Turkey property market, Istanbul should be the first place to target. Land prices in recent years have grown at a tremendous rate due to the restricted availability of residential land to developers. A large number of multinational commercial developers have entered Istanbul in recent years.

The Dubai based investment group Sama Dubai made a $705 million dollar investment in commercial land in Istanbul alone. Istanbul has a buoyant rental market for mid market property, and the potential for even further capital appreciation is predicted due to the recent availability of mortgages to the local population. The opening of mortgage markets is a crucial indicator for growth in most emerging markets.

Residential values grew by 33% in 2006 and similar figures are set to continue in 2007/2008. Due to the chronic shortage of housing stock in Istanbul the demand for housing is at an all time high. The growth in capital appreciation will be further accelerated by the ready availability of mortgage products to the local market, this will make the possibility of home ownership available to a much wider population - so this is the time to enter the Turkey property market!

Don't worry - your e-mail address is totally secure. I promise to use it only to send you "Property Investment Deals".

Turkey Property