If you are considering the merits of investing in the Istanbul property market, you should start by carrying out some thorough research – first and foremost on buying property in Turkey and then the city itself including the many pluses and potential minuses.
Istanbul is one of the biggest cities in Turkey and it is one of the fastest growing cities in Europe.
Yet the price of property in Istanbul is still well below that of other Western European cities on average, however this doesn’t mean that all property is cheap.
Far from it in fact. In more desirable areas of the city, the price of property can run into millions of pounds if it has the benefit of natural scenery or the property is located in more exclusive areas of Istanbul.
Istanbul may not be the capital or Turkey, but it was the leading city in the Turkish property market in 2013. This has made it a hotspot not only for Turkish property investors, but also international investors because of its capital gain prospects, the numerous opportunities it offers to buy and let.
With this in mind here are some of the plus points to consider when investing in Istanbul:
Economic growth and stability
Turkey has a booming economy which is growing rapidly. The IMF currently ranks it 16th in the world. The gross domestic product (GDP) in the last quarter of 2013 increased by 4.4%. It is ranked as the 6th most popular tourist destination in the world and the 4th in Europe. More than 20 million tourists visit Turkey every year raking more than 10 billion US dollars into the Turkish Economy
This strong economy combined with low unemployment rates and favourable property laws is attracting more foreign investors. It also has a strong banking and political system making it a favourable destination for those investors who would want to invest in the Turkish property market.
High returns in investment
The increase in population combined with low property prices and growing tourism yields high returns for those investing in Istanbul property.
The booming tourism industry
Istanbul is one of the most popular tourist destinations in the world. Investors often purchase villas or apartments and let them to tourists which can yield high returns on investment in the right locations.
High demand for housing
The demand for housing in Istanbul far exceeds the supply. It has been reported that there is a shortage of 250,000 of properties in Turkey every year.
Low property prices
The Turkish property prices are still among the lowest in Europe and even in Istanbul you can secure a high yielding rental property in a good area for as little as £50,000
Low mortgage rates
Mortgage rates are at historic lows and make buying property easier for the local population.
These are just some of the many positives of investing in Turkey however there are also some potential pitfalls of investing in Istanbul Property for the unwary.
It is a known fact that foreigners tend to be treated differently in almost every country in the world. It’s no different in Turkey where they can sometimes be charged higher property prices and higher rents.
The different culture and religion to some may be challenging at first to adapt to but with time it will get easier and of course how this affects you depends on how much time you wish to spend living in the country.
There may also a language barrier for some investors but it helps to know that there are plenty of Turkish English speakers available who can help.
Overall, the benefits of investing in the Turkish property market far outweigh the disadvantages and an investment in Istanbul is a great investment for those considering making their move this year.