Property in Turkey has provided better returns in terms of capital appreciation than anywhere else in Europe over the past year, according to the latest Knight Frank Global House Price Index which showed house prices there rose 12.2 per cent year-on-year to the end of Q2 2013.
The index showed that property prices in Turkey increased at the sixth highest rate anywhere in the world, with the next highest European country being Estonia (8th).
Istanbul is driving much of the growth, with the city’s popularity amongst international investors booming in recent years, as demand for residential housing in its suburbs rockets. Turkey property specialist Spot Blue has seen demand for property there increase, particularly from Middle Eastern buyers who have been able to own property in Istanbul more freely since the country relaxed its reciprocity laws last year.
Julian Walker, director at Spot Blue, said: “Istanbul’s cutting edge developments, including residential, commercial, tourist and mixed use, are creating excitement globally but especially amongst Gulf nations. Proof of this is the prominence the city will have at the Dubai property exhibition Cityscape being held in October.”
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Areas of Istanbul that are the focus of new residential developments, so offer appealing investment opportunities, include Beylikduzu, Halkali, Bahcesehir, Kurtkoy, Kavacik-Beykoz and Erenkoy.
There are promising signs that the property market will remain buoyant too. Turkey’s economy grew by 4.4 per cent during the second quarter of 2013, its 15th consecutive quarter of growth. This growth rate exceeded expectations and makes the country the highest performing economy in Europe and the third fastest grower in the world.
Turkey’s Minister of Economy, Zafer Caglayan, said: “Despite the regional uncertainties, Turkey has been growing at an annual average rate of 5.3 per cent in the last decade. Our second quarter performance indicates that annual growth rate will be slightly below 4 per cent.”
Meanwhile, foreign visitor numbers to Turkey were up significantly in August compared to the same month in 2012, and Turkey’s national carrier, Turkish Airlines, confirmed in September that the number of passengers it carried from January to August increased 25 per cent year-on-year.
A total of 4.95 million foreigners visited Turkey in August, a year-on-year hike of 10.64 per cent, according to data from Turkey’s Tourism Ministry. The encouraging news indicates a sign of recovery after slow growth in the previous two months due to domestic factors within the country. More foreigners discovering Turkey and its colorful resorts helps to maintain a consistent level of lifestyle property purchases.
For more information and to browse available properties in Turkey, visit http://www.spotblue.com.