Turkey’s $2bn ‘transformation’

In the last five years Turkey has been transformed from a fringe destination for adventurous buyers to one of the most popular emerging property markets...

Over $2 billion from abroad was invested in Turkish real estate last year with this figure expected to double in 2007.  According to official statistics there are over 17,000 British-owned properties in the country, up from just 3,000 in 2003.

All the things that make Turkey such a good holiday destination – such as the Mediterranean climate, beautiful scenery, friendly people and excellent value for money – have encouraged unprecedented interest from holiday home buyers and retirees while investors are attracted by the potential for capital growth as the country develops and moves towards greater integration with Europe.

“The affordability of Turkish property, with prices significantly lower than established markets such as Spain, is a major attraction,” says Dominic Whiting, editor of the Buying in Turkey guide. “Apartments are available in the coastal resorts from as little as £35,000 and villas from £65,000.”

Ambitious plans

Massive investment in infrastructure and leisure projects, part of the Turkish government’s ambitious plans to double the number of tourist visitors by 2010, are also increasing the country’s appeal and pushing up property values, with annual price increases of 10-25% expected in the main resorts.

Foreign buyers can buy freehold property and land within municipal areas (which means in and around all the resorts, towns and cities) however, since a Change in the law in 2006, foreigners cannot purchase in rural areas and there are some restricted military areas too.

Most properties in the coastal areas are used as holiday homes although a growing number of people are choosing to relocate permanently to Turkey, tempted by the quality of life and low cost of living.

Some holiday homes are rented-out when not in use, but the growth of the holiday rental market has been restricted by a lack of cheap, year-round flights and the dominance of the package holiday industry. The eventual arrival of low-cost flights to the coastal airports will boost the rental market.

Dramatic improvement in quality

There has been a dramatic improvement in the quality and choice of property available in Turkey. In an increasingly competitive marketplace, the best developers now offer cutting edge design, imaginative features and excellent facilities.

However, these improvements are not universal, so shop around. “Don’t be blinded by the bottom line – a more expensive property may be larger, better located or have better facilities, and ultimately make much a better investment.

Also, beware of rental guarantees. Unless the developer has an agreement with a holiday company, this rental income may simply be added onto the sale price,” advises Dominic Whiting.

For more information: Buying in Turkey: A Complete Property Buyer’s Guide to Turkey
Edited by Dominic Whiting.
ISBN: 978-0-9550890-5-3.