(PRWEB UK) 21 April 2011
Property for sale in Turkey is looking like a solid investment in 2011, as residential demand is continuing to outpace supply in the Turkish capital of Istanbul. Turkey is one of the fastest growing countries in Europe, and is positioned to soon become a full member of the European Union. The housing market is only growing stronger, and the city of Istanbul offers huge potential with its expanding middle class.
Reports by well respected Global Property Guide show that there is an approximate shortfall of at least 500,000 homes in Istanbul. Home builders are struggling to keep up with the demand from local Turkish buyers as well as overseas investors. This shortage has been attributed to the fact that the economy is rapidly gaining strength and the middle class is expanding at a rate that exceeds that of property development.
A shortage of property for sale in Turkey such as this one offers up a golden opportunity for those who want to invest in a second home and profit from the rental income. The population of Istanbul is expected to grow by 2.3 million over the next 12 years, and this creates a positive supply and demand ratio for those investing in property for sale in Turkey at this point.
According to the Global Property Guide property for sale in Turkey, and specifically Istanbul, is currently undervalued. Undervalued property means strong yields. The Global Property Guide estimates that due to this property shortage, Istanbul will have approximately 6-7% percent yields, which is even higher than other property for sale in Turkey.
Another reason why so many investors are searching for property for sale in Turkey is because the Turkish banking system is one of the strongest in Europe. After the 2001 Turkish financial crisis, banks throughout the country underwent reforms that made their processes even more stable than before. Turkish banks have made a move towards liquidity, and as a result they were barely affected by the most recent economic crisis and have pulled out ahead of many other European banks. To property investors liquidity means mortgage availability and affordability. With the mortgage market growing at a rate of 20% per year, investors in property for sale in Turkey have a reliable exit strategy should they decide to sell in the future.
In addition to the opportunity that the property shortage presents, interest in property for sale in Turkey is also on the rise as a result of the favourable tax conditions in Turkey. Foreign investors are able to make the highest possible income out of their property, as Turkey’s rate of tax to GDP is as low as 23.7%.
Last but not least, the other important factor in the property for sale in Turkey market is the popularity of tourism to the country. Turkey’s beautiful ancient ruins, flavourful local cuisine, and warm year round climate attract many visitors each year. The fact that Turkey’s tourism is booming not only means that the economy will be strengthened, but that investors who have chosen property for sale in Turkey will be able to benefit by renting out their homes to tourists.
The property shortage in Istanbul is creating an ideal opportunity for homebuyers to invest in property for sale in Turkey. Combined with the strength of the Turkish banking system, favourable tax conditions, and the tourism boom, Turkey is set to become one of the best locations in Europe to own a second home.