If the economy stays in good health and there is no reason to believe otherwise following the upgrade from Moody’s, I expect property in Istanbul in particular to continue being one of the most exciting investments a buy-to-let investor can make.
(PRWEB UK) 20 May 2013
Ratings agency Moody’s gave Turkey a Baa3 rating (Source: Credit Outlook Publication: Turkey, Moodys.com) which provides an additional vote of confidence coming on the back of an upgrade from Fitch in November 2012. This, according to investment analysts at Colordarcy, should help calm any fears investors might have about investing in what still counts as an emerging economy.
This latest upgrade, however, means that Turkey is now much further on the road in its transformation from an emerging economy into a developed one.
Loxley McKenzie, Managing Director of Colordarcy said, “Turkey’s upgrade is great news and can only help Turkey’s rise to global prominence. Its fast growing economy, excellent management of the country’s finances and sensible approach has helped prolong the present cycle of growth in its property market.
"If the economy stays in good health and there is no reason to believe otherwise following the upgrade from Moody’s, I expect property in Istanbul in particular to continue being one of the most exciting investments a buy-to-let investor can make."
According to Colordarcy analysts, the fact that Turkey conveniently located between the Middle East and Europe, explains why its economy has kept on growing even as Europe’s has continued to slide in the past 3 years. It can take the benefits of trade with both.
Turkey gains a lot from its close connection to the Middle East and it attracts a lot of investment from its more peaceful near neighbours in the Arab world.
Unfortunately it hasn’t been all good news for Turkey. “The conflict in the country’s southeast has been a longstanding source of political uncertainty constraining Turkey’s creditworthiness,” Moody’s said in its Credit Outlook publication
McKenzie added, "Another potential threat is Syria’s civil war, which has been rumbling on since March 2011 with little sign of it reaching a conclusion. There have been several incidents that have seen that country’s civil war spill over into Turkey."
When it comes to property investment, however, cities like Istanbul and the holiday resorts of the Black Sea, where most investors look for property are also several thousand miles away on the opposite side of the country and well away from any regional conflicts.
McKenzie continued, "The unstable border it shares with Iraq and now Syria still brings an unwelcome distraction from Turkey’s goal of joining the elite of the world’s major economies while the ongoing argument over Cyprus also makes it difficult to imagine Turkey joining the EU."
Notes to the editor:
Colordarcy is a leading property investment company that specialises in finding positive cash flow investment properties worldwide. Colordarcy investment property portfolio includes some of the best properties for sale in Brazil, Florida, Turkey and the United Kingdom.
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