Why Turkey?

How much did Turkey property prices rise in 2006?

Turkish Embassy, London in its Economic Bulletin suggested 50% for 2005.

Channel 4 TV’s well known programme, ‘A Place in the Sun’ commented that Turkey was in the Top 3 places in the World to invest in property.

Turkey is a fantastic country in which to buy a holiday home either as the ultimate place in the sun or as an investment (or both).  At Turkish Homes Abroad, we believe in practicing what we preach and our Board of Directors have bought into this ‘emerging’ market. The irresistible combination of unrivalled beaches, culture, heritage, great scenery and warm people make Turkey a place that instantly wins your heart.

Turkey has applied to join the European Community (EC) and a future entry now looks likely.  But as you can see already those that benefited from our Directors advice will have already made a significant return on investment (ROI). The EC will elevate Turkish property prices significantly and early buyers will be able to capitalize from a ROI which, in some areas, is not uncommon at, at least, 20% - 30% growth per annum.  Some of our management team’s exceptional 'off-plan' performers have more than doubled in value in just twelve months! Investment opportunities and bargains still abound and our local knowledge places us ideally to act as your gateway into the fabulous world of modern Turkey.

Turkey is a vast country touching borders with Central Asia, the Middle East, as well as European destinations. The Turkish authorities have taken steps to put agreements in place with 39 countries related to investment potential in property with a view to minimizing any tax implications.

Mainstream Turkey is a thoroughly westernised place with all the conveniences and pragmatic outlook of any major destination.  Strike a little further out and you find yourself in unspoilt surroundings away from stress and hustle and ready to take in the scenic beauty of the magnificent Turkish countryside or absorb the warmth of the Turkish sun by the seaside.

Independent journalist, Mark Hempshell, writing for exTRa-time: the Turkish magazine  (often writes for Property Investor News) comments (citation from larger article):

“Most people agree that Turkey is a great place to buy a holiday home abroad. But buying property isn’t just about sun, sand and sea – it needs to make sense from a financial point of view too. In this special report Mark Hempshell examines Turkey’s property market in 2007 and looks at prospects for the future. Just how good a place is Turkey to invest in property?...................

Foreign direct investment (FDI) reached a record level of US$19.8bn in 2006 – and the Economist Intelligence Unit predicts it will be a healthy US$12.8bn in 2007 and keep rising until 2009 at least.....................

It is worth noting that the property market is developing fast even in the absence of EU membership. Turkey received €500m pre-accession financial assistance in 2006..............

Buying on the coast offers the triple benefit of a holiday home, holiday lettings potential and an investment rolled into one...............

Resorts currently most popular with foreign tourists and investors include Bodrum. It is now considered particularly chic and is becoming increasingly desirable and sought after. Planning regulations now limit new developments to two storey, which will limit future supply and may help to push prices up.............

As in Turkey generally most of the coastal resorts experienced something of a property boom in both 2004 and 2005. Most agents reported that prices rose anything from 20% to 50% (and very occasionally 100%) in 2005 alone, depending on type of property, location and build quality......

The Assetz Property Investment Tracker reports that capital gains last year in Turkey were 15% on average (UK 10.2%) and that the average gross yield for rental property in Turkey overall is 7% (UK 6.04%).

Property consultant Knight Frank’s latest research on European residential markets suggests that the Turkish property market will grow faster than most other European property markets this year (2007). It suggests prices will rise 12.5% on average. (Lithuania is highest with a 20% increase forecast, and Switzerland last with 2.5%.)

So, in summary, what conclusions can be drawn about the Turkish property market in 2007 and its potential for the future? The market has certainly grown fast over the last few years, and prices have appreciated substantially. However, price levels have moderated of late – allowing buyers and investors more time to look around for their perfect property and hunt down a bargain. Long term, however, this is a probably a property market that can only go one way .... up!”