Figures released by the Turkish Environment and Urban Planning Ministry show that a total of 1,353 Turkish properties were sold to overseas buyers between May 2012 and May 2013, and to this June over 6000 properties have been snapped up by foreigners spanning 83 countries.
May’s figures rank purchasers from the UK second only to Russian buyers who brought 2,313 properties in the same period. As predicted, there was a significant rise in purchasers from the Middle East and Arab States since purchase laws were relaxed in 2012, but it was the Germans that came in third securing 1,350 residences.
What does this mean for Turkey?
A total of 14,599 foreigners were registered as the new owners of a Turkish property during the year-long review to May. This is great news for Turkey who are proving recent changes in foreign purchase policy, its developing economy and improvements in infrastructure have begun to pay off and are bringing in the punters. Turkey’s ease of access and vast selection of affordable coastal and city developments still represent value for money and promising growth. Ankara based authorities have even suggested international spend on real estate in Turkey may reach a whopping USD 300bn over the next 10 years. Leading sector bodies are echoing this sentiment on the back of glowing first quarter reports for 2013 which show foreign property purchases had risen 89 per cent on the same period last year, drawing USD 720 million (source: GYODER).
So where are overseas buyers heading in Turkey?
The report highlights the province of Mersin on Turkey’s Southern coast as most popular. This is closely followed by Izmir on the Aegean, and Yalova located on the Marmara Sea. Surprisingly investors favoured Ankara, Bursa, Trabzon, Sakarya and Tekirdağ rather than the media hyped central Istanbul which suggests foreign interest, in real estate terms, is a good few strides away from the densly urbanising centres that have, in part, stirred concerns at Taksim.
Although sales in the popular coastal resorts of Fethiye, Bodrum and Antalya are still healthy, none reached the top 10 choices. Nonetheless, these latest figures suggest that investments in less urban or more industrial centres of Turkey are being deemed the safer purchase spots by overseas buyers and as ever, Turkey’s enduring appeal is the wealth of its glittering coastline.
What properties are foreigners buying?
Having worked in the international property market for many years, Suleyman Akbay, MD of Oceanwide Properties, believes the business set generally look towards city developments that can be secured at a lower price with potential to earn good capital gains and rental returns. Non metropolitan districts on Istanbul’s European side and along the coast are proving hot contenders in being able to offer entry level investment new-builds with growth hotly tipped by the building of what will be Turkey’s largest airport between Yeniköy and Akpınar nearby. British coastal purchasers tend to look for cheaper sale holiday apartments and villas in Turkey for personal use or summer rental. Russians normally opt for larger, private and luxurious villas with sea views similar to the LaVanta Kalkan villa range we are currently promoting.
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