Investing in Turkish property

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With property prices currently a fraction of those in other Mediterranean resorts such as the Costa del Sol, and an annual influx of over 25 million visitors, Turkey is frequently tipped as one of the most dynamic emerging property markets in Europe.

Turkey’s steady annual increase in tourism means the country is experiencing an unprecedented level of international exposure, which is increasing the demand for Turkish property significantly. Property experts have dubbed Turkey as the “new Spain”, comparing the booming tourism market, while highlighting that Turkish property prices are at the level Spanish properties were at a decade ago. Since 1997, Spanish property prices have seen a growth of 300% (Source: Financial Times); the currently low property prices of Turkey look set to follow this model and appreciate rapidly over the coming years.

The property market in Turkey, which is already firmly in the ascent, is widely believed to be approaching a ‘boom’ period. Property investors are keen to capitalise on the expected boom while property is still cheap, suggesting that this is a prime time to buy in Turkey. Prices in many coastal resorts have doubled in the last two years alone and yet there is no discernible slow down on the horizon. This is due both to the ever-increasing tourism market and the burgeoning domestic market in search of holiday properties.

The country’s enduring appeal to visitors, its low property prices and the outstanding potential for capital growth have combined to make it a natural investment choice for an increasing number of overseas property buyers. Figures from the Turkish government show that foreigners invested in excess of $1.3 billion in the Turkish property market last year, particularly those from the UK, Ireland, Germany and Canada.

Turkey’s property market received a further boost with the passing of a bill in Turkish parliament in February of this year that will make mortgages accessible in the country for the first time. This will boost the Turkish property market to great new levels, will encourage further growth in tourism, create some positive new buy-to-let opportunities and cause property prices to rise.