A currency crash has seen overseas property investors flocking to Turkey over the last week, as the value of the Turkish lira as much as halved at one point.
Whilst a year ago the Turkish lira was worth about 4.5 to the pound it has steadily declined in value to 6.3 lira to the pound in June, before crashing last week to around 9 lira to the pound at one point.
This currency crash meant that effectively property prices had halved over the last year.
Having seen the dramatic currency crash, many overseas property investors have been flocking to the country over the last week to buy up bargain properties from the currency exchange they can get from their pounds, euros, and dollars.
The property gold rush has seen agents in the popular resorts of Bodrum and Marmaris reporting a huge increase in interest.
Apartments with pools that were selling for £500,000 a year ago were down to £350,000 and less at one point this week. Two-bed apartments were being offered for under £40,000 to those able to act immediately.
With the currency exchange rate fluctuating so much apartments in Marmaris were seen to drop from £26,200 down to £18,500 and then back to £22,400 by Thursday for those exchanging pounds.
Cameron Deggin of PropertyTurkey said: ‘It’s a buyer’s market right now, and buyers are rushing inas if properties are going out of fashion. We generally receive 50 inquiries per day, and get about 2,500 views of our website, but in the past few days both have been running at double normal levels. Buyers are clearly looking for opportunities before the drop in lira is compensated – at least partially – by increases in asking prices.’
Developers whose costs are partially denominated in US dollars have already started raising the price of new-build and other apartments – in some cases by 20 per cent – to compensate for the currency shift.
Those overseas property investors that want to grab some Turkish delight on the cheap will need to be quick to take advantage.