Over the years when you think of prime hotspot locations, you think of places such as Paris, London, and Madrid, European locations that offer real estate at good prices with a high return on investment, right? Well not exactly. The recent economic crisis that has engulfed Europe has seen a steady decline in these areas regarding the value in investing. It is no longer worthwhile to invest in Europe, there is no profit in Europe anymore; this has led to Turkey sharply becoming the premier nation for investment.
Turkey is a nation that has seen a sharp increase in sales over the last few years, rapidly becoming a favourite amongst investors in the know and proving that Turkey owners are secure in the knowledge that their investment is only going to go one way – up.
Turkey is experiencing a growth that has seen the number of foreign buyers to Turkey increasing over the years and has seen Turkey develop as a nation to become one of the most powerful nations in the region – leading to plans to become one of the top 10 economies in the world by 2023, the centennial of the Republic. The strong performance of the economy in recent years including the unprecedented GDP growth being measured at more than 8% per year, has seen Turkey overcome seemingly stronger European nations as a power nation themselves. But what has this got to do with homes in Turkey?
Istanbul is the largest city in Turkey with more than 12 million official residents, officially speaking of course. A recent survey by PricewaterhouseCoopers (PwC) and Urban Land Institute (ULI) to find the number one emerging growth market across Europe chose, you guessed it, Istanbul as the number one spot for investment potential. Istanbul came top in the ‘Development and Investment’ category aswell as the ‘Existing Property Performance’, ‘New Property Acquisitions’, and ‘Development Prospects’ categories – according to the experts, Istanbul is booming. As for Paris, London, and Madrid? Well, Paris was ranked 6th, London 10th, and Madrid a lowly 21st overall. Maybe the strong economic performance of Turkey compared with the struggles in Europe could have played some part in this shift.
What about the city of Istanbul? What makes it so attractive for foreign owners? Why is Istanbul the prime location in Turkey to buy? The answer is pretty simple – it is set to become a monster of a city in the near future. Named by experts as the new financial and business capital of the region, it is perfectly located as a meeting point between Europe, Asia, and the Middle East – good business links means one thing, growth. The growth of Istanbul into a technical hub is set to see prices increase further, meaning investors are flocking to purchase with the future looking so bright for the city.
Let’s take a look at the physical numbers of buying in Istanbul. Istanbul costs can range from anything from 50,000 GBP for a low level entry on a suburb on the outskirts, to several million GBP for a prime home in locations such as Taksim. Buyers with almost any budget can find something in and around Istanbul. Statistics show that during the 2010 to 2011 period, the average growth in price in Istanbul was more than 6.5% - now compare that with Spain and Italy whose economies are taking a nosedive… It is clear that Istanbul can prove extremely fruitful for investors looking to make profit. It is estimated that in the next five years, investors could easily double this rate.
Another key note to consider is the recent decision by the Turkish government to implement a new law that removes reciprocity laws that stop nationals from certain countries from buying. A draft law has been set and is currently under debate by parliament and is expected to be made law in the near future. Once this goes through, nationals from almost any country in the world will be able to buy in Turkey, making the process easier, increasing sales to foreigners, and surely seeing a further influx of foreigners owners.
If you are an investor, it would be wise to look no further than Turkey, and if you are looking to buy in Turkey, it would be even wiser to consider Istanbul as your preferred destination. Central districts in Istanbul such as Beyoglu and Balat are currently undergoing major government funded rehabilitation and regeneration – homes bought here now, will surely be worth a lot more in the future. And if you are a major investor looking to heavily invest, your best bet would be to look towards projects such as the renovation of old city or even Istanbul hotel investments. As the city grows, you can expect your money to grow heavily alongside.