Canny investors choose Turkey
With buy-to-let investors in the UK chastened by falling property prices and stricter lending criteria, is it possible to find a good rental property abroad? We look at two scenarios in Turkey, an exciting emerging market with excellent prospects that buck the national trend.
Spared the worst effects of the global financial crisis, the property market in the largest Turkish cities where economic activity is concentrated is buoyant due to a burgeoning urban population and rapid economic growth. With forecasts of 5-6% growth for 2010 and ratings agency Standard & Poor recently upgrading the country’s investment rating, prospects for the Turkish property market look very positive. The majority of Turkish households still rent their home and there is a well-documented shortage of quality housing in the country’s main centre Istanbul, which has over 12 million people. This is driving the growth of modern residential developments targeting the middle-classes in areas such as Beylikduzu, 30 km west of the city centre.
“With prices from £40,000 for a studio apartment and a buoyant rental market of young professionals and families, annual rental returns of 5-6% make this area an attractive proposition for foreign buyers,” says Dominic Whiting, editor of Buying in Turkey guide www.buyingin.co.uk.
The country’s rapidly developing tourist industry, which is set to attract over 26 million visitors to the country, provides another option for those looking to earn a rental return, but also to enjoy some time in their property.
Greatly improved air access from the UK, with new routes launched by package and low-cost airlines such as Easyjet and Thomas Cook, have boosted the rental market in the coastal tourist areas. However, Dominic Whiting, editor of Buying in Turkey guide, www.buyingin.co.uk, cautions:
“Buyer’s need to choose their area and property very carefully, but net returns of 5% are possible in the best locations, like Sarigerme, Kalkan or Ovacik and Hisaronu, close to the picture postcard Oludeniz lagoon.”
Example Rental Properties
Crystal Homes, Istanbul £40,000
1 and 2 bedroom apartments with a full property marketing and management service and a 2-year 7% per annum rental guarantee. 70% mortgage finance available. Contact Buying in Turkey, Tel: 0845 351 3551, www.buyingin.co.uk,
Laurel Apartment, Ovacik, Fethiye, £75,000
Spacious 2 bedroom split-level apartment on a small complex with pool. Fully furnished to a very high standard. Excellent rental history with confirmed bookings for the 2010 season. Contact Buying in Turkey, Tel: 0845 351 3551, www.buyingin.co.uk