Find out what’s happening in the property investment arena both in the UK and internationally
$1.3 billion invested into Turkey – Ranked 7th most visited global destination by the UN
October 10, 2011Article by Ray Withers
Turkey has become one of the biggest success stories of late having emerged as a sound economic marketplace; but let us not forget what it was that that helped propel the country into the dominant powerhouse it is today. Thanks to a highly successful tourism industry, Turkey has sky rocketed to the top much to the delight foreign property investors.
At present, Turkey ranks seventh in the most-visited global destinations list, according to the UN World Tourism Organization (UNWTO). Since 2000, Turkish tourism operators were able to record the first noteworthy increase in tourist numbers, resulting in an impressive 10.4 million visitors that year. From then on, Turkey has experienced consistent growth in its inbound tourists leading the country to reach an incredible 28.63 million visitors in 2010. Today, the tourism sector continues to grow and is a primary contributor to the nation’s national income and success on the global stage.
Indeed, increased tourist numbers over the years certainly contributed to the 11% year on year economic growth seen in Q1 2011 with Turkey’s ‘city of desire’ Istanbul seeing a 30.1% increase in tourist revenue this year helping Istanbul become the 34th richest city by GDP in the world according to data from PriceWaterhouseCoopers.
Recording better growth than any of the largest emerging markets in the first quarter of this year, Turkey’s $735 billion economy grew 8.8% in the second quarter, developing faster than India and more than four times the Eurozone’s expansion. And, with the help of ever growing tourist numbers and credit growth prompting rising consumer demand, Turkey has been experiencing the best year for takeovers since 2008 with the value of transactions involving Turkish targets rising by 59% annually to $8.8 billion.
Meanwhile, figures from the Turkish government have shown that foreigners invested in excess of $1.3 billion in the Turkish property market last year. At present, there is a shortage of homes across the country, especially in urban areas such as Istanbul, which is currently on the receiving end of massive internal migration. With this in mind, the projected demand of 2.9 million houses by 2015 has led investors into the lucrative Buy-to-Let world where there is high demand for good quality rented housing in Istanbul and surrounding areas.
Ray Withers, Director of Turkish property investment experts Property Frontiers comments,
“Thanks to huge waves of tourists to the country over the years with some 1.4 million Arab tourists visiting the country between January to August this year alone, it seems everyone wants a piece of Turkey. Certainly, for investors, the Turkish government’s plan to make the tourist industry reach 15% of its GDP by the year 2020 will be a big attraction.
“Currently, the Turkish property market is underpinned by a strong economy with a growing tourism sector, and savvy Buy-to-Let investors understand that this can be converted into solid rental yields. As a result, we at Property Frontiers have recognised the growing potential of Istanbul as a lucrative property investment hub with the western suburb of Beylikduzu, one of the fastest growing areas presenting not only one of the best opportunities for property investment but cheaper property price tags than the rest of Europe.”
Available £17,250 below comparable projects in the area, the spacious 1 and 2 bedroom luxurious modern apartments of Kensington Residence located in the heart of Beylikduzu will present tremendously good value for money with an investment of only £17,325 required for a 1 bedroom and £30,450 for a 2 bedroom apartment based on the investor utilising 70% LTV finance.
The finance is available for EU and North American citizens while investors can enjoy an immediate and guaranteed rental income at 7% for 2 years, the perfect opportunity to capitalise on the positive growth and ever growing popularity of the nation. For more information on investing in Kensington Residence please contact the experts Property Frontiers today on +44 (0) 1865 202 700.