Investing in Turkish
property
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Investment properties
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.
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