Turkey: A high-growth ‘safe haven’ for investors?

Istanbul property prices increased by 11.87% between August 2011 and August 2012 with smaller properties 51-75 sqm seeing an increase of 13.16% in this period, claims one property company.

According to Colordarcy, Turkey had proved to be resilient in the face of mounting problems in Europe and this bodes well for the long term.

This year's change in the law allowing foreigners from more countries and particularly those in the Gulf has given fresh impetus to the property market in Istanbul . As a result of this, Turkey is expecting $300 billion worth of property to be sold to foreign nationals in the next 10 years.

Colordarcy highlights that Turkish property has been one of the top 10 best performing property markets in the world (Source: Knight Frank) and has already seen prices rise 10.5% overall in the past 12 months.

Add to this an economy that is actually forecast to grow by more than 3% this year in contrast to a 0.4% contraction of the UK economy and it is easy to see where you can find the best property investment Europe.

Loxley McKenzie, Managing Director of Colordarcy said:

"With so much gloom over the prospects for recovery in Europe this year, the answer for those property investors seeking high growth markets has to be Istanbul property right now.

" Turkey property prices are still relatively low by Western European standards – even in Istanbul. So with property investors increasingly looking to emerging markets to earn higher investment returns, Turkey can be a lucrative market in which to invest for high capital growth".

Economic growth, stability, undervalued property, a long holiday season, good accessibility, strong rental yields and a sound exit strategy are proving irresistible to savvy investors seeking a safe haven outside the EU.