Escape The Euro Crisis In These High Growth Property Markets

Natal PropertyIt is make or break for the Euro.

Political leaders in Greece have declared that their country is heading for its own Great Depression and Spain as well as Italy are looking on nervously.

With all this going on, if like me you are contemplating what a return to the Drachma, Lira and the Peseta will mean for you, I will introduce you to these high growth markets that should help calm your fears…

As Roman philosopher Seneca once said “It’s not because things are difficult that we dare not venture, it’s because we dare not venture that they are difficult.”

So if you are one of those people who are gripped by fear at the prospect of investing in European property, then fear not, there is a country not too far away (and still in Europe) that can help jump start anyone’s property portfolio.

Turkey has been on investors’ radar for the past two years with its rapid GDP growth of 3.2% in the first quarter of 2012 underpinning strong increases in the value of Istanbul property.

The new reciprocity law has also now been approved meaning that citizens from most countries can invest in Turkish property. As a a result there is now a steady influx of investors from Gulf nations in particular, who were previously unable to invest directly.

As my Turkish real estate advisor told me this week, “If you really want to make money from investing in Istanbul property you will need to move early to get the best prices. We are seeing a lot of interest from investors we haven’t seen before as a result of the new law being approved.”

Property prices in Turkey are already rising by around 10% per year, which could mean that in five years we could see them rise by as much as 50%, yet even now, after two years of growth, property prices are still undervalued by western European standards making Istanbul a great place to build or even add to a property portfolio.

Florida property is another hot market that is attracting some attention this year with investors hoping to catch the bounce.

For those investors who don’t want to drop the ball in Europe, Florida is a market where you can enjoy strong rental yields and prices that are showing the first clear signs that they are on the up.

Townhouses are still available from as little as £45,000 and with the price of Miami property 50% below its peak, I ask you, where else in the world would you look – apart from Turkey – for such a strong combination?

Investors from Canada and Brazil are certainly moving in with 47% of foreign investors coming from those countries.

This brings us to the third of our high growth property markets – Brazil.

Brazil is a country that has excited me from the very beginning and I see no reason for this to change. We’re all getting excited about this Olympics and watching that 100 metre gold medal winning performance – just think how excited they will be greeting Usain Bolt in Rio in four years’ time?

This high octane property market might push your safety boundaries further, however for that intoxicating combination of high capital growth and strong demand for property, there are few better places to broaden your investment horizons.

Brazil property prices have risen 140% since 2008 and are expected to rise another 15% this year alone. Yet prices are still well below those you will find in most of Europe.


So if you are concerned about the crisis in the Euro, wouldn’t it be easier to consider investing in those markets that remain insulated from the crisis in Europe instead? Please leave your comments below:

Kind Regards

Brett Tudor
Property Expert