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Property Frontiers Istanbul Property Investment Offering Announced
March 30, 2011Article by Ray Withers
Property Frontiers have announced the addition of a new product in their Istanbul portfolio, a property being sold to the international market at local-market prices, according to the firm. There is substantial demand for low-priced property in Istanbul right now, as international investors plan to capitalise on the massively growing economy and population by offering quality rental accommodation to the local market.
David Cox, one of the company’s directors said:
“As emerging market specialists, Turkey and Brazil are two of the markets we are keenly recommending at the moment. In the case of Turkey, we have long been keen advocates of the Istanbul market, as we believe it offers among the best investment opportunities in Turkey, which in turn offers some of the best investment opportunities to be found in the world that emerged from the ashes of the financial crisis. The trouble has been finding the right products.
“At the moment, many of the properties available to foreign investors are priced for the international market. A few minutes research (if you understand Turkish!) will lead you to find a lot of comparable developments in the vicinity that are selling well at a lower price to the local market. This leaves the investors at a disadvantage in terms of rentals. Similarly we have found many opportunities offering impressive rental guarantees, only to find that the price has been inflated to factor in the rental guarantee.”
Having spent many months researching developments, checking pricing and permission and negotiating with developers we are pleased to announce that we have found a development which overcomes the issues highlighted above. Istanbul Life is the perfect buy to let investment.”
Istanbul was the fastest growing city in the world in 2010 according to the Brookings Institute. The research body said that the Istanbul economy grew 7% in 2010, while employment grew 10%. The accolade was particularly special, when competition is currently so fierce between Brazil, Turkey and other rapidly emerging cities within the top emerging markets.
When it comes to property investment, Istanbul really does have a powerful set of fundamentals.
Rapid population growth: Istanbul’s population is predicted to grow from the current 12.7 million to 15 million by 2023. It is estimated that because of this, 250,000 of the 500,000 homes needed in Turkey will be needed in Istanbul.
When you combine that population with the economic growth, you have a population growing in number and in affluence, which is, and will continue to generate massive growth in demand for property to rent and to buy. This can be seen in the 20% growth recorded in the Turkish mortgage market in 2010, fuelled mainly by growth in the major cities like Istanbul, Izmir and Antalya.