Moody’s downgraded Spanish debt by one level to Aa1 meaning that the traditional powerhouse has lost its coveted triple-A credit rating. The downgrade was triggered over concerns of “considerable deterioration” in the nation’s public finance as well as slow recovery of the economy and follows similar action by Fitch and Standard & Poor’s earlier this year.

In contrast the Turkish economy continues to go from strength to strength with the OECD naming Turkey the strongest member of the international organisation in 2010. It is due to this impressive double digit growth and economic stability that Turkey is expected to be upgraded from current Baa2 to investment grade imminently.

Steven Worboys, MD of Turkish property investment experts, Experience International, comments,

“Turkey’s economy really has bucked the global trend being the only country whose credit ratings have been upgraded twice during the recent economic downturn. With talk of a further upgrade by Standard & Poor’s and Moody’s lifting the sovereign outlook this is surely a positive indicator for future investment in Turkey.”

Latest data from Turkstat (Turkish Statistical Authority) reports double digit growth of 10.3% for Q2 2010 compared to the same period last year, ranking Turkey not only the fastest growing economy amongst G20 countries but also the 3rd fastest in the world.

The booming city of Istanbul, strategically straddling Europe and Asia and recently named Europe’s Leading Destination by the prestigious World Travel Awards 2010, has been credited as the “engine for the consumer-led recovery” experienced in Turkey. Home to in excess of 12 million people and earmarked to become an international financial centre to rival Dubai or even London, Istanbul is the investment hotspot of 2010 with the construction sector in particular witnessing rapid growth.

As Worboys observes,

“Istanbul currently presents a rare window of opportunity; a situation where massive demand for housing is not being met by supply, resulting in prices rapidly rising and rental yields higher than much of Europe.”

One residential development where rental income is guaranteed at 7.5% for 2 years is West N Towers. Located in the burgeoning European suburb of Beylikdüzü, West N Towers epitomises modern city living with 1 and 2 bedroom apartments with lake, garden or city views and a wide range of first-class amenities on site. Apartments can be purchased from £50,750 although 70% finance is available for EU buyers.