The Turkish property market has it all. Recent reforms mean that Turkey is very likely to join the European Union in 2018. (It sounds a long absence, but most of the gains in the Turkish property prices should occur over the next 5 years). The only real question is whether EU membership will continue as the European Commission, for the first time, placed the skills to demand that state potential members invitation.
Turkey is a very moderate Muslim country with people naturally warm and welcoming. If you talk to someone who was on holiday in Turkey, which quickly draws a picture of a country with much to offer and a tourist industry well. Turkey is a place to buy a holiday home in the sun. Here are some reasons why Turkey is one of the top overseas property markets.
Planned EU Membership
Sucessful Economy -in 2002 to 2009 (230 billion to 600 billion USD) makes it a booming Economy with substantial economic growth 4.3% average real gross domestic production seen in the last 7 years.
Qualified cheap Labour force - Fifth largest labour force compared with Europe . Able to compete with industrial output at with affective cost base .
Gateway to the Middle East – Centrally located Turkey is seen as highly important economically as well as politically once in the EU. An efficient and cost effective outlet to major markets.
Terminal of Europe – Important energy terminal into Europe connecting East and West .Turkey is a major tourism port seeing Millions of International guests every year becoming stronger and stronger especially from the U.K as it is only a short haul flight away .
Flights increasing – the number of flights are increasing from the U.K both in summer and during winter making the costs fall.
Fine Climate and Coastal regions – Turkey has a great climate therefore you are able to enjoy the warmth and sun for many days of the year. With beautiful beaches and turquoise seas .
While the market is established as a tourist destination of Turkey the property market is still relatively undeveloped. However, this is changing as the government intends to make Turkey a major economic power with the growth of tourism a key part of its strategy.
Economic Factors – Capital growth projections of around 25% per year .
Land in Turkey has seen increased prices in recent years and in many cases doubled. In 2005-2006 property prices rose by 25-40%. Recent research shows that when comparing investments since 1994 have provided the following average yields:
Stock market – 18% gross
Turkish Property – 568% net
In the opinion of ‘ A Place in the Sun ‘ in the October 2007 edition of the magazine, price increases in beach areas are expected to rise initially by 50% and then over the next two to three years by 100%.
Turkey entering the EU process - Turkey is currently in the beginning of the long road to inclusion in the EU is possible, which means there is still another 5-10 years before prices rise dramatically. Prior to joining the EU, there are many factors that have not been discussed and many issues that Turkey must be corrected before incorporation will be seriously considered. However, Turkey has strong support for its entry and when it is accepted into the EU, it is reasonable to expect house prices to rise sharply in line with a huge increase in tourism.
Many investors are now purchasing in Turkey with the EU inclusion as a major driving force and taking advantage of the current low property prices and growing rental market.
Turkey Property Boom – With so many indicators outlined above it s clear to see that Turkey is at the stage of a property boom . A period which shows a time when demand for property outstrips the supply. The major investments areas such as Istanbul, Fethiye, Dalaman, Gocek,Antalya,Bodrum.
Turkish Economy is very strong with 6% GDP growth in 2005 - The Turkish economy is currently very strong, and running a lot of growth. With an average growth rate was only 2.8% of the ten-year period 1993-2002, Turkey was able to achieve growth of 5.9% in 2003 and significantly higher than in 2004. Turkey is now the world 17th largest economy in the world.
Front line properties with high capital growth potential
What is really of interest to international real estate investors is the current value of money in real estate in Turkey. Turkish property market is still in excellent quality at prices that most other parts of the same caliber could not offer 10 years ago. These prices, combined with excellent expected growth and powered by a strong market drivers offer investors a unique opportunity of ownership.
More than 35 million tourists visit Turkey annually, and to promote the real estate property market.
An important indicator of current real estate market is the tourism industry. In Turkey, the tourism market is the massive expansion that the country gains more exposure in the international press. The opportunity to become a member of the European Union is slowly beginning to take hold. Current demand for Turkey is reflected in the 35 million tourists it attracts each year. This translates into solid rental yields on buy to let investors buy at the best tourist spots.
Golf tourism in the evolution of Antalya, making investments more valuable golf has been a strong factor in the market in real estate markets around the world successfully for many years. Spain Golf used to generate a very strong season high with thousands of players who come to its shores to play golf at a time when they can not practice their sport in the country. With golf is so popular in the world of many developments are being built around or near golf courses. Turkey and Antalya is no different.