Turkey shows all of the signs of being a good investment choice in the near future. With a stable economy and low interest rates, many are considering investing in buy-to-let properties in that country. Read more in this full article from New Home in Turkey.
There is very little argument over whether or not Turkey will be a hot investment choice for the foreseeable future: a booming, stable economy, high liquidity, low interest rates, low taxes and cheap property are all contributing to Turkey’s roaring property investment success throughout the last 18 months.
When we talk about property investments, there are two main types, buy-to-let investments, which profit from the rental of the properties, and growth investments, which profit by selling a property at a higher price than it was purchased for.
With the exception of buy to flip (properties bought and sold for a profit in a short space of time) capital growth investments, almost all property investments will be buy-to-let, because there is no sense in a property sitting empty while it grows in value, not least because this would likely detract from its growth because of maintenance issues. So, buy-to-let is the most common form of property investment, and Turkey is one of the top property investment choices. Below are some of the top cities for buy-to-let investment in Turkey.
You won’t find mention of the top property investment destinations in Turkey, lest there be a mention of Istanbul property shortly thereafter. Istanbul has everything that the buy-to-let investor is looking for.
Demand outstripping supply
The middle class in Istanbul is growing rapidly. According to the Brookings Institute Istanbul was the fastest growing city in the world in 2010, with 7% GDP growth and 10% employment growth. On top of that Istanbul’s population is growing faster than any other Turkish city; expected to grow from the current 12.7 million to 15 million by 2023. During this time Istanbul will need 250,000 homes, of 500,000 needed in Turkey.
The rapidly growing population combined with rapidly growing affluence is leading to massive demand for quality rental properties, far more than supply can keep up with, especially in the emerging financial and industrial sectors, and in the city centre where retail jobs are growing rapidly.
2: Ankara and Izmir
We see much the same story in Ankara as in Istanbul. Economic growth is increasing the affluence of the population. Because of this, people are migrating from rural areas into these cities to find work, which, coupled with natural population growth is causing rapid population growth. A population growing rapidly in number and affluence will almost lead to a rapid escalation in demand for property.
Antalya offers a very versatile buy-to-let opportunity indeed. Like those above the population is set to grow rapidly in number, with a 27% growth predicted over the next 12 years, taking the population from a current 1.9 million to 2.6 million by 2023. But Antalya is also one of Turkey’s most popular tourist towns, and so (after checking the rental law in a given area) investors can choose holiday or residential letting. Giving them a great deal of versatility in order to avoid the voids and increase the yields.