Turkey’s Exceptional Economic Performance Will Continue to Attract International Property Investors in 2011
2010 has been a defining year for Turkey with the nation firmly establishing its presence on the global stage, boasting record tourism numbers and a booming real estate sector. But it is the exceptional economic performance of the land where east meets west that will continue to attract international property investors in 2011 according to experts.
As Steven Worboys, MD of the Turkish property experts at Experience International explains,
“International real estate still remains one of the most popular investments available but many buyers have been stung in the past and are now more cautious, seeking out markets with secure economic fundamentals and developments with realistic returns. Turkey’s economic performance over the past 12 months speaks for itself with over 8% GDP growth expected for 2010 according the latest OECD report and remaining above 5% in 2011 and 2012.”
Praise for side-stepping some of the worst effects of the global recession has been laid at the door of Turkey’s banking system which was recently upgraded by international credit ratings agency Moody’s. In addition Fitch Ratings has raised its outlook on Turkey from “stable” to “positive” affirming them as “BB plus” further boosting investor confidence.
The Istanbul Stock Exchange (ISE), which currently ranks 6th most profitable in the world gaining 4.5% value in the first ten months of 2010 according to the World Federation of Exchanges, lists 19 property developers with a combined value of some 5.5 billion liras and it is the significant growth in this sector which is contributing to overall economic growth.
Turkish real estate has gone from strength to strength in 2010 with the construction sector posting an impressive 21.9% growth for Q2 2010. Both domestic and international demand for quality accommodation in cities such as Istanbul as well as along the Aegean and Mediterranean coasts seems to be insatiable with over 32,000 Britons already own property in Turkey according to the Turkish General Directorate of Land Registry.
Proposed new policy from the Ministry of Public Works and Housing to ease regulations on foreign nationals purchasing land in Turkey, predicted to come into force as early as 2011, could further boost the market, opening it up to increased levels of lucrative Middle East investment.
The economy is also set to receive a boost from tourism revenue with US$ 22.5 billion expected in 2010 rising to US$ 23.8 billion in 2011 according to the program of State Planning Organization (DPT).
As Steven Worboys comments,
“Turkey is now a serious global economic contender; with its robust V-shaped economy the nation bounced back quickly from recession and now is capitalising on its key fundamentals, enjoying a period of growth and prosperity.”
For more information about investing in Turkey, especially the economic powerhouse of Istanbul where off-plan property developments such as the superb Crystal Heights are seeing capital gains of up to 20% per annum and guaranteed rental yields of 7%, then contact the experts at Experience International on + 44 (0) 207 321 5858 or visit www.experience-international.com.