When it comes to foreign investment in property, Turkey is one of the most exciting countries around. It has seen a 14.6% increase in this type of real estate sale over the past year, and Istanbul is attracting particular interest, with a third of properties on the market there now being bought up by people residing abroad. So, what makes it so appealing, and what do prospective buyers need to know?
Part of Turkey’s appeal is of course its unique locations. Now that stability has been re-established after a politically challenging period, the local economy in Istanbul is booming and it has never been a more popular place to live. Landlords buying property there are unlikely ever to have to worry about not being able to find tenants, though some, of course, prefer to buy to let on a short term basis to tourists, leaving themselves the option of staying there themselves sometimes, for business or pleasure. The property market in Antalya is also thriving, while other buyers are looking at coastal resort areas like Alanya, Belek and Kalkan.
Why buy now?
The reason so many people are interested in Turkish property at present is that it’s enjoying an unprecedented boom, with house prices increasing by almost 7% in 2013 and continuing to grow from there. It now has the second fastest growing property market in the world and it shows no sign of slowing down. At the same time, the lira has experienced a steady fall, so foreign buyers can benefit from highly favourable exchange rates; because this is not expected to last, it’s imperative to get in there quickly if wishing to buy. As local property-based taxes are just a 40th of the UK average, property is relatively cheap to maintain and there is no shortage of affordable labour for refurbishment jobs.
Who’s choosing Turkey?
Driving the boom in Turkey is a rush of Middle Eastern investment companies, while Russians are also keen to snap up property along the Black Sea coast, which has always been a favourite with Eastern European holidaymakers. Alongside these are individual buyers, including many from the UK, looking for attractive properties that they eventually hope to retire to and which they can rent out in the meantime. Luxury properties are proving particularly attractive to the latter group as they become increasingly affordable in real terms. Even properties overlooking marinas and golf courses are now cheaper than the average English semi-detached.
As Turkey makes massive improvements in road, rail and other areas of infrastructure, it’s no wonder that it’s become more attractive to British people looking for somewhere sunny to settle. This, in turn, is driving its national economy, leading to growth in average earnings, which in turn means landlords can make healthier profits. The boom can’t last forever, but Turkey looks set to enjoy long term economic stability, so this is an excellent time to investigate its property market and seek out the right investment opportunity.