Istanbul poised for rental growth?

The year is likely to see Istanbul undergo stronger capital and rental growth than London, according to a property investment company.

Turkey's real estate advantages were outlined by Colordarcy, which said rental growth in the British capital seems to be slowing down.

It quoted Financial Times figures showing net yields of around 5.5% on properties in sought-after spots in London but yields of 8.5% on the Turkish capital's prime real estate. And a home there costs less than half of one in London.

Colordarcy said Istanbul can expect at least 15% growth in property prices in 2012, which would at least match the 2011 figure.

Turkey was recently ranked seventh in Knight Frank's Global House Price Index. The value of the country's real estate generally rose 7.7% over 2011.

Source: Assetz