The well respected Global Property Guide publication has just published a detailed report into the Turkish economy and property market. In its forecast report published earlier this year Turkey was featured as a recommended investment destination because it said property is grossly undervalued.
So undervalued in fact that the publication has published a report dedicated entirely to Turkey, titled Turkey: Europe's Best Yielding Property Investment, further, it was followed up by a research article on the site titled Turkey: A Housing Boom Ready to Roll.
The report points out the excellent performance of the Erdogan government in paying down debt, reducing the deficit and inflation, which subsequently allowed them to lower interest rates (the financial crisis was only a catalyst). Lower interest rates means more confidence to borrow, increasing the mortgage market (currently only 4% of GDP much lower than EU average 50%).
Combining the low interest rates with rapid economic growth, falling unemployment and resulting increased consumer confidence and you have the perfect conditions for a Turkish real estate boom.
According to the report, is now the third most visited city in Europe after London and Paris, yet the average square metre price of property in Istanbul is much lower and therefore severely undervalued. The report puts the average price of Istanbul property at 2,386 Euros per square meters, compared to 35,658EUR in Monaco, 14,421EUR in London, 11,851EUR in Moscow, and 9,961EUR in Paris.
Yields range from moderate to good in Turkey it says, putting the range at between 5% and 6.1% on 120sqm apartments. If you want to download the 43 page report click here.
No comments:
Post a Comment