Is Turkey the Next Property Hotspot?
“The property market in Turkey, which is already firmly in the ascent, is widely believed to be approaching a ‘boom’ period. Figures from the Turkish government show that foreigners invested in excess of $1.3 billion in the Turkish property market last year”
What Makes a Property Hotspot?
Location! Location! Location!
Buying investment property nearby popular 4 and 5* resorts and or golf courses will provide more often than not good rental returns. There are at least two new golf courses planned for Altinkum and Bodrum has already started with the opening of The Vita Park Golf Resort and Bodrum Golf Club. Of course the proposed investment needs to be close to an international airport and preferably one where low cost airlines fly to. Easyjet this year started new routes from London to Bodrum and the Turkish equivalent Pegasus Air are also commencing new routes. Bodrum airport is now going to be open all year round making it much easier to get to in the Winter months.
Investment in Infrastructure.
The best property hotspots are in areas where money is being invested by the local government in creating proper infrastructure. The government are spending millions on a new road from Bodrum to Akbuk cutting the journey time in half.
The long awaited Didim Marina, the second largest in Europe is now completed and open for business. This will immediately start to drive the value of local properties upward. The Marina will no doubt attract many affluent individuals to the area which will result in Didim benefiting from much increased revenue.
Tourism is another major factor that enables most emerging property investment locations to create a lucrative property market and to provide buy to let property investment opportunities. Turkey has been highly sought after as a holiday destination for a long time with around 25 million tourists flocking to the stunning beaches along the Turkish coast each year. The Turkish government are targeting to make country’s tourist industry to reach 15% of its Gross Domestic Product by the year 2020.
The beautiful climate and exotic quality of life help to make Turkey a location that is much in demand.
Turkey’s economy, a mix of modern industry and commerce alongside a traditional agricultural sector, is currently bullish in all areas. The World Trade Organisation states that Turkey is one of the most dynamic countries in world trade; exports are booming and inflation has decreased markedly.
Availability of Home Loans & Mortgages
The property market in Turkey’s received a boost with the passing of a bill in Turkish parliament that made mortgages accessible in the country for the first time. This is expected to result in a dramatic increase in property construction to cope with the new demand.
The new legislation will undoubtedly encourage further growth in tourism, create some positive new buy-to-let opportunities and cause property prices to rise. If you would like more details on mortgages please contact us or use the mortgage calculator link on the right hand menu bar.
Property on the Turkish South Coast
The south coast is one of the main areas for foreign investment and is home to a number of resort areas that make up the Turkish Riviera. These are enjoying increased development, along with the improvements to amenities and infrastructure that comes with such development, and subsequently rising real estate prices.
The area’s tourism industry shows the signs of stable and sustained growth.
Many investment experts predict a 30 to 40% rate of capital appreciation over the next two years in the beach areas of Turkey. With a growing number of visitors, the buy-to-let market is also looking promising for investors who are keen to profit from the substantial rental returns that stand to be made.
Turkish Real Estate in City Centres
There is also interest in real estate in Metropolitan zones such as Istanbul and Ankara, from investors looking for alternatives to the popular coastal areas. The local economies in Istanbul and Ankara are growing and there is a high level of domestic purchasing power, with high demand for rentals of residential real estate as well as commercial office space. We have just taken on some exciting developments in Istanbul giving a bank guaranteed rental return of 9.5% for the first 5 years.