Turkey property grows popular among foreign investors

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real-estate TurkeyTurkey continues to occupy a top spot for property price growth, according to several market analyses highlighted by Istanbul-based property firm Universal 21.

According to Adil Yaman, director of Universal21, last year was one of the firm’s most successful years to date.

“We experienced a surge in demand for Istanbul property. Much of this demand came from the UK and the Middle East and the lifting of restrictions on foreign ownership has certainly helped us with property sales,” he said.

The average price of residential property rose by 12.5 per cent in 2013 according to the latest report by Knight Frank. This figure is backed up by Reidin, a company in the real estate research business which specialises in monitoring the performance of growth in emerging markets. According to Reidin, house prices in Turkey rose by 13.32 per cent in the 12 months to November 2013.

However Yaman pointed out that this national picture only tells part of Turkey’s property market story. At city level the largest increase in property prices was seen in Istanbul at 17.06 per cent. However it was the European side of the city which performed best when it came to high end property developments with 10.78 per cent growth in comparison to 9.01 per cent on the Asian side of the city.

Monica Anca, marketing director of Universal 21, explained that Istanbul has been the focus for much of the foreign investment she had seen in property in Turkey in the last 12 months.

“In our experience much of the interest is in new developments on the European side of Istanbul. The suburb of Beylikduzu has a particular appeal with investors due to its transport links and growing middle class population. Property prices are still relatively cheap in this part of Istanbul and high rental yield make apartments particularly investible,” she pointed out.

Universal 21 analysts predict that there will be more double digit growth to come in 2014 as higher construction costs driven up by rising inflation will add 10 to 15 per cent to prices of new properties. In 2014, property has been seen as cheap in Turkey due to the decrease in the Turkish lira’s value against the dollar and the euro, making properties seem more attractive to foreign buyers.

According to Universal 21 Turkey continues to offer buy to let investors a fast growing alternative to cities elsewhere in Europe with only Germany offering anything like the level of price appreciation seen in Turkey over the past 12 months. The Knight Frank report also puts Turkey number one in Europe and sixth place in the world, just ahead of Brazil with Dubai occupying the top spot.

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Reading Time: 2 minutes

Turkey continues to occupy a top spot for property price growth, according to several market analyses highlighted by Istanbul-based property firm Universal 21.

Reading Time: 2 minutes

real-estate TurkeyTurkey continues to occupy a top spot for property price growth, according to several market analyses highlighted by Istanbul-based property firm Universal 21.

According to Adil Yaman, director of Universal21, last year was one of the firm’s most successful years to date.

“We experienced a surge in demand for Istanbul property. Much of this demand came from the UK and the Middle East and the lifting of restrictions on foreign ownership has certainly helped us with property sales,” he said.

The average price of residential property rose by 12.5 per cent in 2013 according to the latest report by Knight Frank. This figure is backed up by Reidin, a company in the real estate research business which specialises in monitoring the performance of growth in emerging markets. According to Reidin, house prices in Turkey rose by 13.32 per cent in the 12 months to November 2013.

However Yaman pointed out that this national picture only tells part of Turkey’s property market story. At city level the largest increase in property prices was seen in Istanbul at 17.06 per cent. However it was the European side of the city which performed best when it came to high end property developments with 10.78 per cent growth in comparison to 9.01 per cent on the Asian side of the city.

Monica Anca, marketing director of Universal 21, explained that Istanbul has been the focus for much of the foreign investment she had seen in property in Turkey in the last 12 months.

“In our experience much of the interest is in new developments on the European side of Istanbul. The suburb of Beylikduzu has a particular appeal with investors due to its transport links and growing middle class population. Property prices are still relatively cheap in this part of Istanbul and high rental yield make apartments particularly investible,” she pointed out.

Universal 21 analysts predict that there will be more double digit growth to come in 2014 as higher construction costs driven up by rising inflation will add 10 to 15 per cent to prices of new properties. In 2014, property has been seen as cheap in Turkey due to the decrease in the Turkish lira’s value against the dollar and the euro, making properties seem more attractive to foreign buyers.

According to Universal 21 Turkey continues to offer buy to let investors a fast growing alternative to cities elsewhere in Europe with only Germany offering anything like the level of price appreciation seen in Turkey over the past 12 months. The Knight Frank report also puts Turkey number one in Europe and sixth place in the world, just ahead of Brazil with Dubai occupying the top spot.

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