Low-cost turkey really ‘cooking’
Turkey is fast becoming one of the most popular countries for UK buyers of overseas property, giving the more traditional hotspots – France and Spain – a serious run for their money...
According to A Place In The Sun magazine’s annual top 20 buying destinations, Turkey has risen to the bronze position, knocking last year’s 3rd placed Bulgaria well into left field at only 8th in the popularity ranking. The country may be located further a field than 5th place Italy and 13th place Morocco, but this only goes to prove that the old adage - the lesser the distance, the more popular the overseas property investment – is well and truly a message of the past. The facts substantiate the premise that one can never underestimate value for money, a cosmopolitan, secure lifestyle and a general feeling of well-being.
Irrespective of the low cost / high standard of living offered by this Mediterranean country, there are other major factors that have enabled Turkey to ‘leap-frog’ other countries to its currently desirous position. Pound for pound, Euro for Euro, price per square foot/metre remains significantly lower than many European countries. How long this will last is anyone’s guess with indeterminable variables such as a growing ‘grey population’ with a greater disposable income yet a current international credit crunch affecting the rational balance of the overseas property buying equation.
March of the Brits
Turkey would appear to be a division of two halves – those areas already established with investors and holiday home buyers, such as Bodrum and Istanbul and those areas currently picking up momentum on the international property radar. Alanya and Belek both fall into the latter – with good reason. Both lie on the Southern Riviera, the former being a heady mix of ancient culture and beach paradise, with a reputation for a secure, ‘family’ oriented environment. The recent announcement that Alanya’s much-anticipated international airport is to open later this year, has already seen investors flocking to the 3,000 year old city.
The British already register as the third highest number of foreign owners of property in Turkey, behind the Germans and Greeks. (Source: Sabah January 2008). Accounting for more than 20% of approximately 70,000 properties owned by foreigners, the figures may well look different in a few years with Turkey’s economic and cultural attractions becoming more visible.
Sean Gillic, Managing Director of Turkish Property Invest commented: ‘Compared to many European countries, property in Turkey is inexpensive. Whilst it is always possible to find emerging markets where prices will be lower, Turkey stands out by way of its demographic, economic and cultural constituents,’ said Gillic.
‘This is a country of 70 million people, of which more than 50% are under the age of 35. Highly educated and highly aspirational, they ensure that a local market is and will continue to be a reality. Whilst a modern infrastructure already exists, both on a national and local level, the government is committed to infrastructure upgrades as well as environmental consciousness.
Huge infrastructure investment
Sean continued: “In Alanya alone, 130 million euros have been invested over the last 8 years in roads, public services and public facilities, whilst the nearby hydroelectric dam – to be completed in 2009 – will confirm the city’s ‘green’ promise.
‘Add to the mix the fact that Turkey has one of the fastest growing economies in the world; it is now possible for foreigners to obtain a local mortgage and the famed Turkish hospitality and it is not hard to see why Turkey’s popularity is gathering pace. The ‘now’ is rosy and the future is looking equally promising.’
For any doubters out there, consider the 2007 FORBES Misery Index, which measures personal income vs tax burden in a range of countries. France is listed as the most miserable place, Spain comes in 12th, whilst Turkey ranks a mere 26th – even lower than the UK !
