Property prices in Istanbul, Turkey’s largest city, have risen
substantially in the last three years, and are showing no signs of
cooling.
Istanbul-based property consultants Universal21.com
noted how the pace of property price growth in the city has quickened in
recent months as both local and foreign investor interest in investing
has increased.
In August this year, the price of a new home in
the city had risen by an average 2.66 percent month-on-month, and by
13.80 percent year-on-year. This is more than 1 percent higher than
Turkey’s national average of approximately 12 percent over the same
period.
Monica Anca, Director of Universal21.com, said: “For
those investors who purchased property in 2010, the past three years
have seen year-on-year increases of between 12 and 15 percent. There are
few property markets in the world that could match this level of
property price inflation.
“In the past it would have been more
difficult for investors from some countries to purchase property in
Istanbul, however with restrictions eased this has helped fuel a second
spell of double-digit growth in the city.”
According to Istanbul real estate analysts Gyoder’s Home Price Index,
property prices in Istanbul have risen by an average of 41 percent
since January 2010. Assuming that the current pace of property price
increases is maintained, Istanbul could well reach the 50 percent
milestone within the next six months.
Studio and two-bedroom
apartments currently offer the best capital growth in Istanbul,
according to Adil Yaman, Director and Market Analyst at Universal21,
“Investors
should employ the services of a local agent before deciding to invest
in the city. As with any city, investors should also proceed with
caution and make sure they know as much as possible about where they are
investing, including the likely rental yield and demand in a particular
area.”
Andrew
Batt, International Group Editor of PropertyGuru Group, wrote this
story. To contact him about this or other stories email andrew@propertyguru.com.sg
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