Istanbul poised to kick-start the European property market recovery claims specialist

Turkey's biggest city, Istanbul which strategically straddles the Bosphorus Strait, holds the perfect recipe for kick-starting the recovery of the European property market according to the experts at Armaya International.

Although ironically not yet a member of the European Union, the country has the fundamentals of successful property investment - supply and demand - and therefore trumps many other European cities.

This combined with the availability of mortgage finance for both domestic and foreign investors, low interest rates and minimal exposure to international credit markets has created a very appealing global real estate environment.

Mustafa Culhaoglu, MD of Armaya International, said: Investors seek markets which hold real confidence; those which deliver not just in the short term but also long term gains.

“Many are cautious about investing in Europe, especially in ‘PIGS’ (Portugal, Ireland, Greece and Spain), however Turkey's banking system being heralded as ‘one of the strongest and least-leveraged in Eastern Europe’ by Standard & Poor, who also recently upgraded the nation's credit rating, provides welcome reassurance. Something which many other European nations can take heed from.”

The latest statistics released paint a promising picture for both for Istanbul and Turkey as a whole. Regular monthly index Redin.com reported a 0.49 percent property price increase in Istanbul in January 2010 and 116,000 homes sales were made nationally in Q4 2009, a substantial 25 percent increase compared to Q4 2008.

Culhaoglu added: “Since launching our latest investment opportunity in Istanbul, Crystal Heights, demand from savvy investors who have identified the massive potential of the Istanbul property market has been incredible.”

With only 20 percent of properties in the Crystal Heights development, located on the European side of the city, being available to overseas investors, the units are selling very fast.

Purchasing in Istanbul is straightforward. Up to 70 percent mortgage finance available is available at interest rates as low as 4.8 percent. Prices remain affordable from £45,000 (fixed in sterling) for a one bedroom luxury apartment with a two year rental guarantee of 7 percent p.a. in place.