Turkish property values rise
Earlier this year we reported that Global Property Guide had published information confirming that rental yields for apartments in Istanbul were performing particularly well. The publication had quoted that smaller apartments in particular were offering the best yields with an average yield of 6.9%. Recent figures have now confirmed that residential property in Turkey is increasing in value, with house prices rising by 0.73% last month and rental values increasing by 0.9 %. In Istanbul the picture was even rosier for investors, with rental values increasing by 1.13%.
While much of the world is seeing their economies falter and stall, Turkey is still riding the wave of its own success story. Turkey’s economy has soared, largely as a result of their hugely successful tourism industry. According to United Nations World Tourism Organisation (UNWTO), Turkey is currently ranking seventh in the most visited destinations across the globe. Since 2000, when tourist number increases started to be properly recorded, numbers have risen from an already impressive 10.4 million to a staggering 28.63 million visitors last year.
Istanbul’s tourism revenue alone grew by just over 30% this year. This increase in tourism is driving the Turkish economy forward, with an 11% year on year growth in GDP reported in the first quarter of this year and continued growth of just less than 9% in the second quarter. This is a faster rate of development than even India. Savvy investors are recognising this boom and investing widely in Turkish buy to let property. A shortage in housing in Istanbul, together with the growing tourism industry already mentioned above, is fuelling the demand for rental properties and good rental yields are available across the country.
To discuss any of our Turkish investment opportunities please do not hesitate to contact us.
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