Istanbul, Turkey, opened up its property market to foreign investment a year ago and the result has been continued price growth, according to Universal21. Local and foreign investors have pushed prices up nearly 14% for the year, and Gyoder’s Home Price Index indicates a 41% increase in prices since 2010. Local experts say the market is being driven primarily by foreign investment from within the Middle East region. Even so, experts advise caution for foreign buyers who are interested in entering the market, particularly with regard to rental yield and regional demand. For more on this continue reading the following article from Universal21.
Istanbul’s property market shows no sign of cooling and the pace of growth has increased in recent months according to Istanbul property consultants Universal21.
Both local and foreign investors are investing in real estate and in August the price of a new home in the city had risen by an average 2.66% in a month on the way to an overall 13.8% increase for the year.
The firm says that this is more than 1% higher than Turkey’s national average of approximately 12% in the same period.
‘For those investors who purchased property in 2010, the past three years have brought year on year increases of between 12 and 15%. There are few property markets in the world that could match this level of property price inflation,’ said Monica Anca, director of Universal21.
She added that prices are expected to continue rising. ‘We are seen an increasing number of investors from the Middle East arriving in Istanbul as a result of the market opening up to foreign investors more than a year ago,’ she explained.
Previously it was difficult for investors from some countries to purchase property in Istanbul, however with restrictions eased this has helped fuel a second spell of double digit growth in the city.
According to Istanbul real estate analysts Gyoder’s Home Price Index, property prices in Istanbul have risen an average 41% since January 2010. Assuming that the current pace of property price increases is maintained Istanbul could well reach the 50% milestone within the next six months say analysts at Universal21.
Studio and two bedroom apartments currently offer the best capital growth in Istanbul according to Adil Yaman, director and market analyst at Universal21. He pointed out that foreign buyers in particular should do their homework before investing.
‘As with any city, investors should proceed with caution and make sure they know as much as possible about where they are investing, including the likely rental yield and demand in a particular area,’ he said.