The recent financial problems in Turkey and the subsequent fall of the lira against foreign currencies has meant there has been a large increase in the number of overseas investors coming into the market. This reality has seen the volume of property sales in the nation rocket towards the end of 2013, with the same likely to be true in 2014. The report from Universal21 comes just weeks after the dame company forecast that political unrest and the financial downturn would mean that those with dollars, pounds and even euros to spend would be coming to the nation to invest and get more for their money than they would in their own countries.
The fall of the lira meant that during December 2013, there was a 31 per cent annual increase in the number of properties that had been sold to people from other nations. The drop in value of the Turkish currency encouraged those with a bit of property savvy to bring their money to the country before last week's central bank interest rate hike. However, while the lira recovered slightly as a result, it is thought that it will still take some time before it sees the sort of levels of strength of days gone by.
While it will be less enticing for foreign investors to bring their money into the nation than it was in late 2013 and early on in 2014, there will still be many who are looking to spend moving forward. However, it's unlikely that price rises will be as steep as they have been in recent times, according to Universal21. Adil Yamam, director of the company, said: "The recent increase in interest rates will almost inevitably have a cooling effect on property prices in the short term. Istanbul property prices have continued to rise but at a slightly slower pace than we have been used to in the past three years."
Good news for investors, however, comes in the form of yet another prediction. It is thought that the fact mortgage rates will be rising throughout this year will mean fewer Turkish nationals will be able to buy their own homes. While this will not be good for those looking for short-term capital gains, it should be the case that more people look towards the rental market, increasing the potential income for those operating on a buy-to-let basis.