Istanbul: the best performing city in europe?

Photo credit: Erman Akdogan

Hopes for 2014 are now bright, with property consultants Universal21.com expecting another year of strrong growth, boosted by positive economic figures.

Assuming Turkey can resolve its political problems, then it should be business as usual in 2014, says the group, highlighting Istanbul as hotspot for investment with its new house prices increasing by as much as 14.63 per cent in the 12 months from December 2012, the strongest performance in the continent.

Much of the growth seen in Turkey in 2013 came as a result of the national economy growing 4.5 per cent and then 4.4 per cent in the second and third quarters of the year. That economic growth has boosted employment, particularly in the construction sector where demand for building workers continues to rise in line with demand for new homes.

Turkey also now has its lowest deficit to GDP ratio since 2006, providing evidence that the economy, at least, remains in good hands.

Universal21 Director Adil Yaman comments: “Property prices will not rise forever and I think in 2014 we will see more growth, but not as high as we have seen in 2013. The good news for foreign investors from the UK and other European countries is the recent decline in the value of the Turkish Lira. This automatically makes property in Turkey cheaper to buy and the cost of living for anyone seeking a second home will have reduced significantly."