Buying a property in Turkey now, amidst the countries political uncertainty, may seem crazy to some. But read on – there are still a myriad of property investors out there interested in Turkey and the Fethiye region.
Having not long returned from A Place in the Sun Exhibition in Birmingham, Oceanwide Properties are confident that Turkey is still very much on the property investment radar. Let’s not kid ourselves, the real estate market in Turkey is certainly challenging at present. Daily media coverage surrounding the November 1st election, the rock bottom value of the lira and the Syrian refugee crisis does not sit well with some investors. But it’s evident that for those that now steer clear, there are many that see an opportunity. Data suggests that residential property sales in Turkey increased by 6.5% in August compared with the same period in 2014. Turkstat (Turkish Statistical Institute) also reported that the number of international buyers in Turkey has increased by 15.2% year on year. They also report that there was a 22% increase in foreigners buying property during the first half of 2015. Investors are definitely out there, but who are they?
Who is buying property in Turkey at the moment?
A Place in the Sun Magazine reported that Brits make up around 70% of foreign property ownership in the Mugla region (mostly located around Bodrum and Fethiye). These are largely either buy to let investors or lifestyle seekers looking to enjoy a holiday home or spend their retirement near the coast. The beauty and diversity of the region, the lower cost of living and ultra friendly locals are usually enough to make people fall in love with Turkey. As many of us that now reside in Fethiye know, once you visit Turkey you usually return. It’s often holidaymakers that do just this that end up purchasing a property in the area. According to the Ministry of the Environment and Urban Affairs, in 2014 it was the British that accounted for the majority of foreign home ownership in coastal Turkey. This was followed by the Russians, Germans, Norwegians, Irish, Danes, Dutch and Iraqi’s. The majority of these foreigners chose investments around the popular resorts. In Fethiye, areas near Oludeniz beach, namely Hisaronu and Ovacik, and Calis are most popular. These areas demand rental premiums so are great for the buy to let market. They have established ex-pat communities, are within an hours transfer from Dalaman airport and are wonderful settings for a holiday home. Uzumlu village, 20 minutes inland from Fethiye, is also popular suiting those seeking more for their money and a more traditional location. Fethiye town and it’s suburbs like Deliktas and Tasyaka also appeal to foreigners looking for apartments at a lower price and wishing to immerse themselves in the local community.
Investors from the Gulf buy property in Turkey
As Oceanwide Properties News reported last week, Turks living abroad are now coming home to purchase properties pre-election, whilst the exchange rate is in their favor (read article). As we pointed out in the report, the exchange rate standing at around 4.5 TL to the pound and almost 3 TL to the Dollar make Turkish properties, and the cost of living in the country, extremely favorable for those enjoying foreign incomes. This, plus the ease of access via Dalaman to most main European destinations and internationally via Istanbul, make a coastal property a very viable option.
Interest from investors from the Gulf has also increased. Since the laws allowing foreigners to purchase property in Turkey were amended in August 2012, those from 183 countries can now invest in property in Turkey. This has brought with it a new wave of investors from the Middle East.
Oceanwide Properties have seen a notable increase in enquiries and sales from Middle Eastern clients. The Turkish Statistical Institute reported a 22% increase in the numbers of properties sold to foreigners during the first half of 2015. Those from the Gulf spent a total of $4.3 billion on real estate in Turkey. Many Arabs favour key large scale projects in Istanbul, although popular resorts along the Mediterranean, like Fethiye, have also enjoyed a surge in sales. Although Turkey’s political uncertainty has deterred some, many others are seeing the low value of the lira as an opportunity. For those enjoying a foreign income, now is the time to buy a property in Turkey. Those with dollars, pounds and Euros to spend can get far more for their money on today’s market. This, coupled with the many religious and cultural similarities between Turkey and the Middle East make owning a property here very viable and attractive. Suleyman Akbay, MD at Oceanwide Properties
Real estate in Turkey has certainly progressed over recent years. Although the initial property boom of around 10 years ago has died down, the area itself has evolved bringing with it a new wave of investors. Fethiye is simply a lovely place to be. Few can grumble about the scenery – waking up to views of pine clad mountains and staring across a blue island filled bay is something many believe costs a fortune. Realising property here can be brought for less than £50,000 does make many think again. After all, what property in the UK, or for that matter much of Europe, can be brought for that? Fethiye has bloomed into an extremely attractive and desirable location and one that has, and continues to attract investors. If you are interested in knowing more about property in Turkey please see Oceanwide Properties Website for our current portfolio.
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