Istanbul is officially an investment hotspot of late, having seen a 27% rise in foreign investment in this year alone. While increasing numbers of people are choosing to live in the city, the tourism sector is also growing rapidly, meaning Istanbul is one of the fastest-growing cities in Europe at the moment.
This shortage of good accommodation has led Experience International to launch Richmond House II, investment Apartments designed for the international investor. The rapid growth of the city has seen an emerging middle class, increasing the demand for new homes. According to the Real Estate Investment Trust Association, around 250,000 new homes are needed each year until 2015 to meet existing demand. About 400,000 people move to the city each year either to study or to work.
Richmond House II is a brand-new development located in an up-and-coming suburb in Istanbul, and according to Stephen Worboys, managing director of Experience International it "provides a low level entry into one of the fastest-growing cities in the world, and delivers investors with a provable income stream and demonstrable exit strategy -the local market."
The company is offering 18 luxury apartments to their members which offer high rental returns and strong capital appreciation. These include one and two-bedroom apartments with high-end facilities set within a private gated community. Pre-release prices for a one-bedroom penthouse suite start from £56,000. Investors can put down a 30% deposit as 70% loan to value finance is available for North American and European buyers. The apartments are secured with a three-year 7.25% protected rental guarantee. Past projects have shown price lifts of up to 30% during construction.
Turkey has enjoyed phenomenal economic growth over the past few years, as it grew by 8.8% during the second quarter of this year compared to the same quarter in 2010. A considerable amount of this growth has been attributed to revenue from tourism.