The real estate market in Turkey has enjoyed significant growth over the past couple of years and is now a permanent fixture on the international property scene, some may say at the expense of other more traditional destinations such as Spain, it is claimed.
The non eurozone country has capitalised on its attractive climate, Aegean and Mediterranean coastlines, low cost of living and ease of access to the UK with 73,000 overseas nationals moving there, figures from the Turkish Statistical Institute show.
But it is not only demand for holiday homes which is fuelling Turkey’s property boom, according to Turkey experts Experience Internationals. Real estate investors are looking at o rapidly growing cities such as Istanbul where the significant housing deficit presents opportunity.
‘The success of Istanbul’s property market is a simple matter of supply and demand. Due to the rapid growth of the city, some 400,000 new inhabitants arrive each year to work or study, the existing housing stock has reached capacity,’ explained Managing Director of Experience International, Steven Worboys.
It is estimated that 250,000 new homes per annum are required until 2015 to meet the demand generated by foreign as well as domestic investment,’ according to the Real Estate Investment Trust Association.
‘Due to elevated market prices and limited availability of land within the central business districts, developers are now turning their attentions to the thriving suburbs of Istanbul constructing modern, western style residences aimed to meet the demands of the burgeoning middle classes,’ added Worboys.
An example is Beylikduzu on the European side of the Bosphorus where the new Crystal Heights apartments and duplexes will be constructed. Crystal Heights affords a strategic location close to the two major motorway routes into central Istanbul, 20 minutes from Ataturk International Airport and awaiting a new metro-bus link and metro system connection yet only 10 minutes from one of the most popular seaside resorts of the city.
‘Beylikduzu has one of the strongest growth scenarios due to its proximity to the city centre combined with the benefits of living in a well serviced environment away from the over-crowding. The population of this suburb is expected to grow three fold within the next five years to over a million inhabitants further strengthening the perfect investment environment for growth and excellent rental returns,’ said Worboys.
The contemporary styled residences of Crystal Heights are set to offer all modern conveniences with first class on-site amenities including rooftop swimming pool, fitness centre and underground parking.
Worboys also points out that as with other areas of Turkey, purchasing in Istanbul is straightforward with no restrictions on foreign ownership of property and up to 70% mortgage finance available.
Prices remain affordable with apartments in Crystal Heights available from £45,000 and capital growth is currently estimated at 15% and rental yields of up to 10% per annum expected.