More overseas buyers investing in Istanbul, latest data shows

More overseas buyers are investing in the real estate market in Istanbul with the latest figures showing that sales in February were almost triple those in the same month last year.

A temporary lull in January 2014, which was caused by a combination of political uncertainty and a seasonal lull in buyer activity, has now been replaced by a new found optimism amongst foreign investors according to agent Universal 21.

‘It has taken some time for investors to realise that it is much easier to invest in Turkey than it has been in the past. Now we are seeing the full effect of the county's focus on attracting foreign investment in property over the past two years,’ said Adil Yaman, investment director of Universal21.

‘A lot of red tape has now been taken out of the buying process and foreign investment has been actively encouraged. Turkey needs foreign investment to help realise its long term ambition of becoming one of the world's economic powerhouses. This is good news for the property market,’ he added.

The economic backdrop to Istanbul's property market growth has been an economy that continues to outperform Eurozone countries, rising employment and a recovery in the Lira, which was bolstered recently with the central bank's decision to increase interest rates.
 
The dollar fell below 2.09 against the Turkish Lira in April. This was the first time since December 2013 the dollar was at this level against the Lira and according to Yaman this indicates that the decision to increase interest rate has helped stabilise the currency for the time being.

Istanbul has also helped Turkey move into the top five fastest growing property markets in the world this year according the latest global house price data released by Knight Frank. The city itself saw prices rise by up to 20% in 2013.

‘Turkey's economy remains in much better shape than its European counterparts. Economic growth and positive news on jobs and unemployment are essential to the health of property markets,’ said Monica Anca, director of Universal 21.

Turkey's economy, despite missing out on an upgrade from the world's credit agencies is actually doing far better than Italy which has a debt to GDP ratio or Spain and France which have a ratio of 120% and 110% respectively. Turkey's debt to GDP currently stands at 33% and with a shrinking current account deficit, the outlook is better than it was in 2013.

Turkey has a habit of exceeding expectations when it comes to the economy. The International Monetary Fund predicted that Turkey was on course for 3.8% growth in 2013 however this was exceeded by 0.2% with Turkey's economy growing 4%.

According to Universal 21, Istanbul remains the number one choice for investors looking for high capital growth and a strong rental market.

To get the best out of investing in Istanbul the advice is to look for furnished apartments in locations such as Beylikduzu where a combination of high capital growth and demand for property, means investors can often see prices rise in double figures in as little as 12 months.