Turkish Property Rental Market Growing

Investors in Turkey’s real estate market will see a familiar trend developing in this stunning and exotic nation of history, beaches and an ever-growing expatriate community.  Property buyers in Turkey are finding that they can make a great deal of money off the rental market as “Spanish type” tourist rentals come into fashion.

In this article we’ll take a closer look at how the Turkish property rental market is growing and how investors are making their Turkish real estate dreams really pay off.  The latest trend in buying property in Turkey doesn’t involve long-term relocation, it simply mirrors the buy-to-let property investment philosophy common in other popular parts of the world.

The Turkish Daily News is reporting that investors are turning more and more to short-term leases to really make their property investments pay off.  Buyers of new housing are being promised between 5 to 10 per cent of their home’s value in annual rental income and this makes a buy-to-let investment approach highly attractive.

Although the trend is very much developing in all parts of Turkey, and is popular in the tourist hotspots, Istanbul seems to be the area of choice.  With its year-round rental market versus the eight-month season elsewhere, it’s homes in Istanbul that will show some of the greatest returns.  Non-resident buyers who find homes in some of Istanbul’s hottest areas, such as Bosporus and Taksim for example, are seeing real interest from vacationers looking to rent as well as from professionals employed in the city who want to let an apartment.

Buyers here will find the potential rental income versus the outlay for a property purchase is not bad - the rental rates within Istanbul are between 150 and 400 euros a week depending on location and property type, and purchase prices for apartments are still running in the affordable range so naturally this is an attractive option for investors.  Detached properties are also available, but they will cost a lot more and you will need to head away from the most popular locations to find anything starting from below GBP 180,000 for example.

The development of the property rental market in Turkey makes a great deal of sense as Turkey’s tourism figures continue to soar.  According to the Turkish Statistics Institute tourism growth in the nation is on fire!  August figures alone had 3.38 million visitors coming to Turkey and the total number of people paying a visit to Turkey in 2007 is predicted to have reached 13.89 million between just January and August.  This is a rise of more than 16 per cent over the previous year’s figures.

Whilst the beaches of Turkey’s southern coastline are no doubt a major draw for tourism, Istanbul’s year-round appeal is really starting to shine as well.  Buyers here are finding a rental market that does not end when the waters become too cool for tourists to swim in.  Between the city’s landscape and its fascinating history, its unbelievably rich shopping and its fascinating architecture and people, Istanbul tends to pack in tourists no matter what month of the year we’re talking about.

Getting in on the developing tourism rental market does involve more than a purchase though - buyers will need to carefully research the options, find a management company and ensure that all legalities have been attended to.  If this is done, the rental market can provide a good return on investment for property investors in Turkey.