|
Savvy investors and those seeking homes abroad have been buying property in Turkey for many years, and for good reason.
Purchasing a Turkish property not only represents a sensible and viable option for investors seeking healthy capital gains and rental rewards, but also for those simply wanting an affordable holiday home or retirement property in the sun.
With long hot summers, excellent transport and trading links, a wide range of affordable properties and a wealth of regional diversity, it should come as no surprise that those in the know, know to choose Turkey!
Turkey in Brief
Turkey, or the Republic of Turkey as it is officially referred, embraces both Europe and Asia. A large country, with an ever growing population of over 77.8 million, it is well over five times the size of England and bordered by eight other countries: Greece, Bulgaria, Georgia, Armenia, Azerbaijan, Iran, Iraq and Syria.
A non-eurozone country, it is recognised globally as a country of significant importance – its unique location, amidst many global trade routes, and rapidly growing economy makes it a major regional power that attracts large and small scale investment on a daily basis.
Tourism in Turkey
For many years Turkey has performed well on international tourism polls and it currently ranks seventh in the most popular global tourist destinations (UNWTO). Istanbul’s popularity alone was celebrated in 2010 when it was crowned the European Capital of Culture and Turkish tourism figures have been boosted considerably ever since.
Statistics suggest that over 32 million tourists are expected to have visited Turkey in 2012, a significant increase on previous years. Last year, gross national tourism revenue increased by over 10 per cent to a whopping £15.6 billion, a clear indication that Turkey is a destination to watch, not only in terms of tourism, but also with regard to investment and economic growth. Those purchasing a Turkish property for rental purposes can now expect premium returns providing they buy wisely.
Turkey’s wealth of coastal resorts attracts the majority of your traditional, sun-seeking UK and European holidaymakers. Popular resorts around Izmir, Fethiye and Antalya enjoy long hot summers, mild winters, great beaches, a wealth of modern facilities and countless hotels, villas and apartments suiting most budgets.
Recent years have seen the resort airports of Antalya and Dalaman run increased numbers of international flights throughout the summer months, and most destinations can now be accessed easily via Istanbul year-round.
Istanbul attracts a different type of tourist, with weekend breakers, business travellers and round the world holiday-makers all flocking to the city throughout the year. Istanbul has always been one of the world’s most alluring and fascinating cities: its many attractions; historic sites; trading and excellent shopping malls and bazaars place it on most travellers' bucket list of places to visit at least once in a lifetime!
The Economy and Property Investment in Turkey
We are all aware of recent global economic difficulties. With much of Europe’s economy and the euro in turmoil, and the US and UK not fairing much better, there are few countries that have escaped the economic crunch. People have tightened their purse strings and those in a position to invest are understandably now hesitant and far more cautious with their funds.
Luckily, Turkey has managed to weather the financial storm well. It hit headlines not due to its struggles, but for enjoying double digit quarters of growth in 2010, going on to be one of the fastest growing world economies in 2011 and being earmarked as an investment destination for 2012 and 2013 respectively.
In 2012 alone, numerous reports by recognised financial bodies, such as Moodys and PriceWaterHouse Coopers, are increasingly calling attention to Turkey’s financial stability and strength creating a flurry of investment activity by keen property purchasers and investors alike.
Why Invest in Turkish Property?
Those considering a Turkish property can rest assured that they are following a well-trodden path. Many that have done their homework, taken quality legal and local advice, and invested wisely are now reaping the rewards of their outlays.
A few facts and figures to consider:
|
Turkish GDP grew from 230 billion USD to 736 billion USD between 2002 and 2010, a clear indication that the Turkish economy is strong and sustainable long-term. |
|
|
The economy in Turkey is forecast to grow by more than three per cent in 2012, certainly a big improvement on the UK which is expecting growth of just 0.4 per cent. |
|
|
Turkey has a population of more than 77 million, the largest and fastest growing population in Europe. This figure is expected to grow to over 83 million by 2023. There is a severe housing shortage in cities like Istanbul and Ankara and a constant demand for quality city housing and rental properties. Buy to let investors are currently gaining substantial rewards on many developments causing the investment press to tip Turkey at the top of world property hot spots! |
|
|
183 countries and foreign states can now easily purchase properties in Turkey, including Arab Gulf states and Russia welcomed in 2012. |
|
|
Property investors from Saudi, Yemen, UAE and Kuwait are boosting the Turkish property market with many city properties having increased by a colossal 10 per cent in value since January 2012. |
|
|
It is predicted that over 300 billion USD worth of property investment will take place in Turkey over the next 10 years. |
Who Invests in Property in Turkey?
Many foreign nationals and companies have chosen to invest in Turkey over recent years. Those purchasing a property for sale in Turkey tend to fall into two main categories: the lifestyle investor and the city investor.
Lifestyle Investment in Turkey
Those that visit coastal Turkey can’t help but notice its beauty, relaxed lifestyle and diversity. Thriving tourist resorts and traditional villages nestle into pretty bays and harbours. Fabulous mountains and pine forests drop dramatically into the clear turquoise bays of the Aegean and Mediterranean.
From those who simply want an affordable holiday home, to those wishing to design and build their dream sea-view estate, a wealth of options are available in a choice of settings suited to most tastes and budgets.
Lower costs of living and superior quality of life attract foreigners in retirement, and those seeking a property to pay for itself and gain rental returns are in for a treat with the popular tourist areas of Izmir, Fethiye and Antalya where rental premiums are achieved during the summer seasons from May to October.
City Investment in Turkey
Istanbul is a total contrast to coastal Turkey. Steeped in a vast and fascinating history, it is a crowded, bustling and vibrant city and the main hub of the Turkish economy. The country's trading and cultural heart, Istanbul has throughout history attracted foreign investors keen to utilise its unique position between Europe, Asia and the Middle East.
Recent years have brought about a boom in foreign investors keen to secure affordable apartments in a city where housing shortages mean quick capital gains and healthy rental returns. Istanbul attracts those looking for multiple units to buy and rent at affordable prices, those looking for mid to long term capital gains and anyone wishing to purchase an investment property in a city tipped globally as one of the top shot spots for investors.
|
