A range of favourable economic and local conditions have fallen into place to make Istanbul one the best places to invest. This was the case last year and in my view those same conditions will continue to boost the property market again this year.
(PRWEB UK) 17 February 2012
Hollywood siren Megan Fox recently expressed her desire to attend archaeology sites around Istanbul while filming an ad for Doritos says property consultancy Colordarcy. Property investors meanwhile have been looking more towards what they see in the present and future of Istanbul with the following seven reasons to invest…
1. The Booming Economy
Istanbul property is the centre of everything in Turkey, the main recipient of FDI, the highest total of net migration, the highest rents and the highest prices.
The depreciation of the Lira helped to ensure Turkey reached an all-time high of $134.6 billion in exports revenue (and experts say they could have done much better!) That was 18% more than the year before - what the UK and US wouldn’t give for those figures. (According to the IMF)
Turkey GDP is expected to have reached 9% by the end of last year and the government expects GDP to ease back to 4% in 2012, still good figures when most Eurozone countries will see zero point something as an achievement. (According to FT)
Loxley McKenzie Managing Director of http://www.colordarcy.com said, “A range of favourable economic and local conditions have fallen into place to make Istanbul one the best places to invest. This was the case last year and in my view those same conditions will continue to boost the property market again this year.”
2. Inward Migration
Having one of the fastest growing economies in the world cannot be achieved without job creation. Much of those jobs are being created in Istanbul where the main financial and industrial industries are located.
Inward migration to Istanbul to fill many of those jobs tripled last year and TurkStat has noted a dramatic increase in net migration to Istanbul – rising from 30,000 people annually – to 102,000 annually in 2010. (According to Turkstats)
3. Simple Supply And Demand
Demand is outstripping supply by 70,000 units annually in Istanbul and assuming that we don’t suffer another Great Depression in 2012 this situation is unlikely to change anytime soon. (According to Turkstats)
4. FDI, Shopping And More Shopping
Istanbul is one big reason why Turkey is drawing huge amounts of FDI into the country. FDI has increased from $36 billion in 2002 to $135 billion in 2011. (According to Turkstats)
Istanbul just can’t build enough shopping centres, 30 are now in the pipeline with the city accounting for two thirds of all mall space in Turkey. There will soon be 275 metres of shopping centre for every 1,000 inhabitants, which is 15% more than the European average. (According to Turkstats)
5. Rising Rents
The price of property is low by most European city standards, however there is still a large section of the Istanbul population, who rent rather than buy property. Rental yields of up to 12% are achievable in Istanbul.
Some of those migrating to Istanbul are finding that their Turkish adventure turns into a hunt for rooms to rent with some paying €340 a month for a room in the city centre.
6. Capital growth
If anyone invested in Turkey a year ago they would have benefited from a 9.88% rise in the value of their property and that was up to November 2011. This was well above the overall Turkey average.(According to Turkstats)
7. Loosening Restrictions On Foreign Ownership
Savvy property investors are unlikely to be surprised to hear of the loosening in restrictions to foreign ownership. Turkish law was once hostile to anyone who didn’t return the favour when it came to the right to own property in the country – not anymore.
Turkey is holding out its arms to investors again this year by lifting any lingering restrictions on citizens from 89 countries. (According to Turkstats)
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 Atlanta, Brazil, Florida, Turkey and the United Kingdom.
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