Investors ‘scrambling to buy’ in istanbul

Istanbul has been named the world’s second best place to invest in property…

This is according to PriceWaterhouse Coopers and the Urban Land Institute, who have officially named Istanbul as the second best place to invest in property, behind Moscow.

According to Turkey’s Land Registry General Directorate, 73,000 foreigners now own property in Turkey, with 8,830 buying in Istanbul. Rental yields are reaching up to 7.6% for apartments in the city Centre, while the Global Property Guide has revealed that developments in the suburbs are giving returns of up to 8.8%.

Demand is being driven by Istanbul’s domestic and international population, which is growing at 1.5% a year**, giving year-round rental opportunities for buy-to-let investors. Billions of dollars worth of foreign direct investment is also pouring into Istanbul’s real estate, with the International Investors’ Association predicting an influx of $15billion-$20billion in 2008.

Excellent rental returns

Julian Walker, Turkey property specialists at Spot Blue, commented: “Investors are scrambling to have their own square metres in Istanbul because they feel confident of the city’s excellent rental returns.

“Others are reallocating their funds because the Istanbul market is still showing signs of growth. And while there might be a global credit crunch, buy-to-let properties in Istanbul are proving popular for a younger demographic who are looking to use their profit to get on the UK housing ladder.

Mr Walker continued: “As Istanbul grows, there are other areas on the verge of the city that will go up in value. None of this is overnight, which is why we advise our clients to invest in Istanbul for the long-term. One thing’s for sure – investors are certainly getting a lot more value for their money compared to London.”

**Government-backed Tourism in Turkey says it is confident Istanbul will win its bid to be named European Capital of Culture in 2010.