The REIDIN New Home Price Index indicates prices for new homes are picking up in Turkey, and experts believe the trend will continue through 2012. New-home prices were up 9.88% and existing home prices increased 0.89% for the year ending in November, although some regions are performing better than others. Rents are up 0.70% overall in the country as well, and some landlords are seeing yields as high as 8% or more in some cases. Experts expect these increases to continue due to Turkey’s continued economic growth and improving profile as a vacation destination along its coastlines. For more on this continue reading the following article from Property Wire.
The prices of new properties in Turkey have been increasing steadily over the last 12 months and experts expect them to continue doing so in 2012.
According to the latest figures from the REIDIN New Home Price Index prices increased 0.78% in November and are now 9.88% up on November 2010.
Trademarked projects in the of European side of Istanbul increased 1.17% month on months while those on the Asian side were up 0.47%.
The index also shows prices for existing homes increased 0.89% in Turkey overall, 0.93% in Adana, 0.55% in Ankara, 1.27% in Antalya, 1.08% in Istanbul and 1.14% in Izmir. Prices were stable in Kocaeli and decreased 0.11% in Bursa during December 2011.
Rents are also creeping up. Rental prices for existing homes increased 0.70% in Turkey overall and were up 1.54% in Adana, 1.69% in Antalya, 1.09% in Istanbul; 0.39% in Izmir and 0.45% in Kocaeli. They were unchanged in Ankara and fell 0.65% in Bursa.
The Turkish residential property market is likely to see further rapid growth in 2012 as the country see economic growth, unlike many of its European neighbours, according to Gem Invest, which specialises in the sale of properties in emerging markets.
‘If you know where to look properties in up and coming areas and even in the capital Istanbul can be bought for less than the price of an average family car,’ said a spokesman.
The company says that rental yields in excess of 8% for smaller apartments are possible and the best places to invest are on the European side of Istanbul.
‘There are some promising up and coming areas close to the city’s university campuses. Many of these areas are seeing significant development work and further improvements in infrastructure close to the city centre. The best bargains can be found in outlying districts, but if your budget stretches far enough, the city centre still offers excellent yields even with high prices taken into account,’ he explained.
‘Those looking for holiday properties should consider resorts such as Antalya and Fethiye and for an outside bet Kalkan which provide the best prospects along Turkey’s popular coastlines. Yields of up to 8% are possible in these locations with average yields around 6% which is higher than you can expect in holiday locations elsewhere in Europe. Modern seafront homes in Kalkan for example can generate up to £3,000 a week in peak season,’ he added.
This article was republished with permission from Property Wire.