The UK has long been recognised worldwide as a reliable and profitable real estate investment destination. The property market in this country offers the potential for steady growth and returns, driven by a number of factors. Let's examine together whether property investment in the UK makes sense.
Economic Stability: The UK is a country with a strong and stable economy. This means that the UK property market is on a solid footing. The UK economy continues to grow, driven by London, a globally respected financial centre. This economic stability gives investors confidence and enables them to build a profitable property portfolio.
Rental Yields: It is possible to obtain high rental yields in the UK property market. Properties, especially in big cities, can be rented at high rents as they are in high demand. This allows investors to earn a regular income stream. In the Turkish property market, however, rental yields are generally lower and more prone to fluctuations. Recent examples of this include the fact that the price increase imposed on tenants has generally been below the market average and landlords have suffered in terms of return on investment. At the same time, the amortisation period of rental income over the money spent on the property ranges between 10-20 years, which is shorter than most countries in the world. The average amortisation period of property investment in Turkey has recently approached 45 years on average.
Legal Assurance: There is a strong legal framework governing property investments in the UK. Investors can be confident that property rights and tenants' rights are respected. Effective legal processes and a fair judicial system protect investors' interests and minimise risks. In the Turkish property market, however, legal uncertainties and protracted litigation are sometimes more likely to occur.
International Diversification: The UK functions as a global financial centre and offers various opportunities for investors. London is a favoured destination for investors from around the world. Property investment in the UK can reduce portfolio risk by providing international diversification. Compared to the Turkish property market, the UK has a wider global investor base, which increases market liquidity.
Sustainable Growth: The UK property market has the potential for sustainable growth in the long term. The country is seeing strong demand, supported by factors such as population growth, immigration, tourism and job opportunities. Furthermore, the UK government offers various policies and incentives to encourage the property sector. The Turkish property market also has the potential to grow in the long term, although it can sometimes struggle to maintain steady growth due to economic fluctuations and political uncertainty. In the short term, the real estate market in Turkey is not expected to see any activity in the near future as policies to reduce the supply of money are expected to be implemented to balance the high inflation in the economy.
Of course, every investment decision depends on personal preferences and risk tolerance. However, property investments in the UK may be a more sensible option than property investments in Turkey, as they generally offer a stable return potential, high rental yields, strong legal safeguards, international diversification and sustainable growth potential.
Sincerely,
Investment UK
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