According to Knight Frank, property prices increased by 12.5% in 2007. Despite house price rises of up to 60% over the last 4 years, property remains affordable compared with other European countries and rental yields are high at 8%. Changes to Turkey's regulatory system within the property market continue to attract the attention of foreign investors and planned improvements to the infrastructure will ensure further growth in this sector.
In Istanbul demand for development land for both residential and commercial construction is high. Changes to the classification of industrial land within the boundaries of the city are being made to meet this growing demand. The most notable example is the district of Levent which has emerged as an important Central Business District on the European side of the Bosporus and there are several high-end residential areas in its surroundings.
The future acceptance of Turkey in the European Union provides growth potential that will certainly boost the price of real estate in the future. The Turkish property market is emerging rapidy and offers the investor a variety of possibilities to maximise gains on property investments. Improved macroeconomic stability has enhanced the investment climate and all sectors of the Turkish economy have experienced an influx of foreign investment, the property market being no exception.
An overseas mortgage broker recently reported a year-on-year 147% increase in enquiries about Turkey and the country was named by the Independant in March 2008 as "the number one location to purchase a property abroad".
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