property investors have had it tough in Europe for most of the last five year as economic uncertainty has weighed heavily on the confidence of banks and driven down property prices.
(PRWEB UK) 23 January 2013
Loxley McKenzie, Managing Director of Colordarcy, commented, “Property investors have had it tough in Europe for most of the last five year as economic uncertainty has weighed heavily on the confidence of banks and driven down property prices.
"At times it has seemed like this long period of economic decline might not have an ending.
"Those who are old enough to remember the last big recession in the early 1990s will remember that it didn’t seem half as long or as painful as this one and they would be right.”
It has just been announced by the ECB that economic weakness in the Eurozone will extend into 2013 taking it into a fifth year of uncertainty.
According to analysts at Colordarcy, This is not good news for property investors hoping for a better year ahead in Europe.
Looking on the bright side, the ECB do expect recovery later in the year, although this will depend on a few countries complying with strict austerity, most people found difficult to swallow in 2012. What are the chances that the populations of Greece and Spain will be more welcoming to these in 2013?
So in the meantime where should an investor looking for property that will pay for itself, be looking in 2013 if they are not convinced about the prospects of a recovery?
Colordarcy points out that Turkey, a country that has weathered the storm quite well since 2010 is one place to look. Unlike other countries in Europe which have been firmly rooted in recession or only modest growth in GDP, Turkey posted GDP growth of 9% in 2010 and 8.5% in 2011 and despite a cool down in 2012 it is expected that GDP will be in the region of 4%.
Growing economies are one of the main drivers of property values as populations get wealthier and demand increases for housing close to business centres of major cities. This goes some way to explaining why property prices in Turkey continue to rise as values continue to fall elsewhere in Europe.
So what can investors expect in 2013?
Turkey’s economy is export driven and it managed to bring in a record $135 billion of revenue in 2011 by diversifying its markets to the Middle East and North Africa.
Turkey is in the happy position of not having to rely on Europe for its own economic prosperity even though it can still benefit if things improve. So if Europe does begin to recover in the latter part of 2013 as the ECB thinks it will, then this can only help Turkey.
Analysts at Colordarcy say that whatever happens in 2013, expect property in Turkey to still be the number one choice for investors looking for relief from another punishing 12 months in Europe.
Notes to the editor:
Colordarcy is a leading property investment company that specialises in finding positive cash flow investment properties worldwide. Colordarcy investment property portfolio includes some of the best properties for sale in Brazil, Florida, Turkey and the United Kingdom.
For more information, supporting pictures or logo artwork, please contact:
Tel: +44 (0) 207 100 2393