Buying property in Turkey, will you see a good return on your investment?22nd September 2014
Turkey offers affordable property, however the prices have been increasing over the past decade, especially in the areas located along the southwest of Turkey including; Antalya and Izmir as well as Turkeys biggest city Istanbul.
Turkey’s property market heating up
Turkey has become an international property hotspot. This is mainly due to the cost, ease in purchasing property laws for foreigners and low taxes.
From 2007 – 2013 Antalya saw the highest house price increase that rose by 22.62%, followed by Istanbul at 19.47% and Izmir at 16.07%.
Turkeys economy is steadily growing, it is projected to rise by 3.8% in 2014, according to the European Commission.
Turkey is an attractive place for keen investors who are enjoying the benefits of Turkeys low property prices and buying up land and property, which is causing an increase in the value of real estate across the most desirable locations around Turkey.
So will buyers see a healthy return on such investments?
The answer to this is all about the location.
Turkey has a thriving tourist industry; a good place to start an investment is by purchasing a property for the holiday rental market. Choosing the right location will not only guarantee you a steady rental income, with a yield of around 6% (higher than Spain, Greece, Bulgeria, Italy and France - source ‘Global property guide’)but will also see your property value increase significantly over the coming years.
So yes, if you invest in a property or land, which is in the right location, then you are sure in for a good return on your investment. Remember such investments should be made with a long-term goal; your property will not rapidly increase its value overnight but over the years as Turkey property market booms.
It is impossible to predict exactly what return you can expect from your investment, The Turkish Ministry of Development stated that the average increase in Turkish real estate prices was around 21.5 percent in the first quarter of 2014 compared to the same period in 2013.
If this trend continues to rise then a property investment return will be high.
So where is the perfect location?
Well-known coastal regions, such as Antalya, Mugla, Aydin and Izmir all have their charms, and they are of course favourite holiday destinations. Istanbul is another popular choice.
Plots, which have a sea or harbor view, will always be in demand. Buying land or property in such places will always increase due to the high requirement for these sort-after locations.
Buying off plan or buy resale property
A common option is to buy off-plan because these properties are usually sold at a very competitive price.
Once the development is complete, usually the price of the properties increases.
Purchasing a resale property offers the buyer a chance to see the property in full, to 'see what you’re buying'. Both options have their advantages.