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Best places to invest in Turkey in 2012

30th January 2012 Print

Turkey property was one of the star investment opportunities of 2011 and forecasts are pointing at further rapid growth in 2012.

There appears to be no stopping the growth of Turkey as an investment location  as we enter 2012. A perfect storm of rapid economic growth, the falling value of the Turkish Lira against sterling, low interest rates and strong demand for property in the cities make it hard to imagine that investing in Turkey will be anything other than a good move for property investors.

However trying to find the best place to invest in property isn't easy, as with any other country and Turkey being one of the largest in the world presents its own challenges to the novice property investor.

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

So with this in mind, here are our best places to invest in Turkish property:

Istanbul is the 20th largest city in the world Istanbul is undoubtedly the main attraction for investors in Turkey property. Prices grew 6.3% to Q3 2011 according to Knight Frank with much of this fuelled by rising prices in Istanbul. Combine this with rental yields in excess of 8% for smaller apartments and you can see why Istanbul remains firmly on investors' radar in 2012.

Istanbul consists of 2 sides, the European side and the Asian side, however the best districts can be found in the European side where 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.

With most of the action taking place in Istanbul investment wise, for 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.

The important thing to remember when investing on the coast is to choose regions that are not blighted by over development or areas which are not exclusively reliant on tourism. Antalya for example is located close to its own international airport and prices are low compared to other resorts with properties available from just £30,000.

Turkey provides an excellent alternative for investors willing to step outside the traditional comfort zones of Spain, and Cyprus and explore a market that still has some way to catch up with prices in western Europe.

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