The Inside Edge
The Turkish property market is currently enjoying a boom, not least because its economy is currently the fastest growing economy in Europe according to the OECD. This is a position that will not be relinquished any time in the near future said the body.
This is due to the country being in much better shape than the rest of Europe, with a stable banking system, controlled inflation a budget deficit currently thought to be running at around 2%. Its growth is set to continue thanks to its youthful population and the transition of many citizens from eastern Turkey into the cities.
Although the downturn sent property prices down in Turkey, this now means that they are undervalued when compared to the rest of Europe, which makes them a juicy opportunity for investors.
Tourism in Turkey is still growing rapidly and the population is expanding, which when coupled with low interest rates ensures that the property market is increasing in momentum.
The Turkish government makes it relatively easy for foreigners to buy property although there is a little red tape to be negotiated. This red tape comes in the form of the military which has to approve every purchase making sure it does not endanger national security. However because of the rapid pace of reform, which looks like bringing the military under the control of civil courts for the first time in Turkey’s history, this may be removed in the near future.
Rental yields on Turkish apartments are good, with gross yields being up to 7.5% for a relatively small apartment according to research by the Global Property Guide. Larger apartments tend to generate a little less income with yields being around 3.7% to 5.7%.
Finally, increasing accessibility through improved airport facilities means that this country will continue to be popular with tourists, which are bound to boost the property market even further.
This is a Guest article by Julian Walker of Spot Blue, a Turkish real estate agent currently marketing property in Turkey from as little as £25,000.