5 Reasons Why Turkey Property Won't Go The Way Of Spain
Property prices in Turkey have risen 10.76 per cent year-on-year according to the latest report from the online real-estate analysts REIDIN – however as Turkey's national press is fearing a bubble, Colordarcy.com say there are 5 reasons why the country's property market is unlikely to go the way of Spain.
(PRWEB UK) 22 July 2012
1. Turkey's property market is unlikely to follow the Spanish path because prices have not reached a point where they are grossly inflated according to Colordarcy.com.
Much has been made of the rise in Turkey property prices over the past three years and this is true – property prices are rising by around 10% per year (Source: Hurryiet Daily News July 2012), which could mean that in five years we could see them rise by as much as 50% if this trend continues.
Loxley McKenzie, Managing Director of Colordarcy said, "The important thing to remember though, is the price of Turkey property is low compared to countries like Spain. Investors can still quite easily find a spacious 2 bedroom apartment in Turkey's resort towns for £35,000."
2. The second reason Turkey is following a different path to Spain is that local authorities are careful to place strict planning restrictions on new developments. This means there are minimum distances between buildings and there are few high-rise blocks dominating the skylines of coastal resorts.
3. Property development in Turkey has accelerated to meet demand and there is evidence of this in the main Turkish holiday resorts. Unlike Spain however, this is matched by demand on the local market according to real estate sources in Turkey.
4. Healthy rental yields are the most important thing to consider when investing in property and here too there is a big difference. Rental yields in Spain are about 3% in most resorts (Source: Global Property Guide 2012) due to oversupply issues, yet in Turkey yields are 7% or higher, partly due to the relatively low price of property.
5. Finally, unlike Spain, Turkey is predicted to continue being one of the fastest growing economies amongst OECD members until 2017 with anticipated average annual growth of 6.7% while Spain can look forward to 0.3% growth in 2013 in comparison (Source: OECD 2012).
Notes to the editor:
Colordarcy is a leading property investment company that specialises in finding positive cash flow investment properties worldwide. Colordarcy investment property portfolio includes some of the best properties for sale in Brazil, Florida, Turkey and the United Kingdom.
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