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Property prices in Turkey continue upwards

According to the latest figures from the REIDIN New Home Price Index prices increased 0.78% in November and are now 9.88% up on November 2010.

Trademarked projects in the of European side of Istanbul increased 1.17% month on months while those on the Asian side were up 0.47%.

The index also shows prices for existing homes increased 0.89% in Turkey overall, 0.93% in Adana, 0.55% in Ankara, 1.27% in Antalya, 1.08% in Istanbul and 1.14% in Izmir. Prices were stable in Kocaeli and decreased 0.11% in Bursa during December 2011.

Rents are also creeping up. Rental prices for existing homes increased 0.70% in Turkey overall and were up 1.54% in Adana, 1.69% in Antalya, 1.09% in Istanbul; 0.39% in Izmir and 0.45% in Kocaeli. They were unchanged in Ankara and fell 0.65% in Bursa.

The Turkish residential property market is likely to see further rapid growth in 2012 as the country see economic growth, unlike many of its European neighbours, according to Gem Invest, which specialises in the sale of properties in emerging markets.

‘If you know where to look properties in up and coming areas and even in the capital Istanbul can be bought for less than the price of an average family car,’ said a spokesman.

The company says that rental yields in excess of 8% for smaller apartments are possible and the best places to invest are on the European side of Istanbul.

‘There are some promising up and coming areas close to the city's university campuses. Many of these areas are seeing significant development work and further improvements in infrastructure close to the city centre. The best bargains can be found in outlying districts, but if your budget stretches far enough, the city centre still offers excellent yields even with high prices taken into account,’ he explained.

‘Those looking for holiday properties should consider resorts such as Antalya and Fethiye and for an outside bet Kalkan which provide the best prospects along Turkey's popular coastlines. Yields of up to 8% are possible in these locations with average yields around 6% which is higher than you can expect in holiday locations elsewhere in Europe. Modern seafront homes in Kalkan for example can generate up to £3,000 a week in peak season,’ he added.