Istanbul rental values continue to rise
Istanbul has been touted by Emerging Real Estate and others as a prime property investment hotspot for 2012 and recent figures released by REIDIN.com, a real estate information company that focuses on emerging markets, have further supported our position. They show that rental values and property prices are still rising in Turkey which is excellent news for property investors who are seeing good returns on their investments, both in terms of capital appreciation and rental yields.
The cost of purchasing a home in Turkey rose last month by an average of 0.95% compared to the previous month, a year on year rise of over 8.5%. The biggest monthly rise was in Istanbul which recorded a monthly rise of 1.18%. Istanbul also saw the biggest monthly increase in rental values with a rise of 1.06%, higher than the average rental value rises across Turkey which climbed by an average of 0.85% last month. The cost of renting in Turkey is now 7.9% higher than it was a year ago.
Last Year PriceWaterhouseCoopers rated Istanbul as a top city for real estate investment this year and the city is certainly living up to this promise. The property market in Istanbul even remained stable throughout the global turmoil of 2009 and has continued to grow over the past few years. Foreign investment in Istanbul during the second quarter of 2011 alone neared $200million with estimated property sales valued at over $780million in the same period.
There is a continued high domestic demand for quality rental accommodation in Istanbul and many investors are renting their properties out to local people, including students who are attracted to the apartments and houses near the city’s universities. However, there is also a growing market from tourists who often prefer the flexibility of renting properties rather than staying in hotels, and appreciate Turkey’s position outside of the troubled eurozone, not to mention the culture, clean beaches and excellent food on offer.
To discuss your options for buying investment properties in this thriving and cosmopolitan city, please contact us at Emerging Real Estate.