Istanbul looking good for 2011

Turkey property is looking like one of the hottest investments for 2011 as it is currently enjoying its lowest inflation levels for 41 years, low public debt and a high demand for housing. Istanbul is definitely a property hot spot at the moment and the Brookings Institute report for 2010 showed that the economy in the city grew 5.5% and employment rose by 7.3%.

However property prices here are amongst the lowest in Europe which would indicate the chance of a good capital returns as the demand for good rental properties is rising. The fledgling mortgage market in Turkey is growing rapidly with the numbers of mortgages taken out rising by 32% last year with similar numbers predicted for this year.

Many people are choosing to move to Istanbul, not only from other regions of Turkey but also from other countries within Europe. They are lured by the chance of better jobs, and the population of the city is expected to grow almost 20% by 2015 from 12.7 million to 15 million.

As the city continues to grow in not only population but also prosperity, the demand for housing will only increase. It is estimated that an extra 250,000 homes will be needed in Istanbul which will take time to build. Interest rates here are likely to remain low which combined with an emerging property market which as yet is largely unregulated means that there are excellent opportunities to buy homes at low prices. This situation cannot last for long so now is definitely the best time for investors to buy in Istanbul.

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Categories: Property Invest / Turkey Property


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