Property Investing in Turkey

Known as the gateway between Europe and Asia, a land of contrasts that seem exotic and yet familiar, Turkey stands as a social and cultural bridge between the East and the West.

Turkey’s discovery as an emerging market for overseas property investors has been steadily gaining popularity over recent years. The massive increase in tourism and interest in the location has assisted in cultivating an attractive property market for international investors.

The country receives over 20 million visitors annually for both business travel and tourism, with the growing tourism interest giving the country new levels of international exposure. The cultural attractions combined with long summers, a stunning coast line, and not forgetting ski resorts, provide a year-round demand for the location.

The growth in the tourism market has opened up daily flight connections with discount airlines, making the destination increasingly accessible from anywhere in Europe. The tourism market has also assisted in developing the real estate investment market, with demand exceeding supply while other near-by European markets struggle to stay afloat.

Overview of Investing in Turkey

Investing in Turkey provides a fantastic emerging market opportunity for high rental yields, strong capital appreciation, buy-to-let investment, holiday homes, and realistic exit strategies.

Rental yields remain steadily strong in all locations of Turkey. Coastal areas tend to generate double the percentage of yields obtained in cities and large towns, however coastal resorts do tend to be seasonally affected. The population of Turkey is growing at a faster rate than the world average, increasing the demands on the real estate market. The increase in local demand, coupled with the international demand is expected to produce a continued rise in property prices in the foreseeable future.

The significant rise in demand for property is expected to cause property prices to double in the next 3 to 5 years, enabling those who invest now to benefit from the continued growth before the market begins to stabilise. Considered to be an outstanding opportunity as an emerging market, Turkey has been developing and modifying its approach to attract increasing numbers of overseas investors into its market.

The benefits and attractions of the Turkish property market offer a visible long term future with a fast developing economy. Growing numbers of buyers has sought Turkey for investing due to the favourable balance of risk assessment in an emerging market. The largest groups of investors into the Turkish real estate market have been from the UK, Ireland, Germany and Canada, with several large Middle Eastern companies beginning to set sights on Turkey for new, large scale development projects.

News Highlight - Turkish Mortgages

While interest in the Turkish property market has been high for quite some time, the recent introduction of the mortgage market is expected to see this interest soar. Non residents are now able to obtain financing in the country to buy Turkish property, leading to an expansion of the availability and accessibility of loans.

The delay in the growth of the Turkish property market to overseas investors has been partially due to the limited access to financing. While interest has been strong, many buyers have held off from the market due to the lack of financing options. Those who preferred not to release equity or try to obtain loans from their home country for purchasing in Turkey, are now beginning to take a direct interest in the market once again.

The passing of the bill in Turkish parliament to enable the accessibility of mortgages to non residents is set to assist investors with a growth in demand. This will cause an inevitable rise in property prices, coming into line with those of its European neighbouring countries. This will create positive opportunities to investors buying now and benefitting from the growth in capital gains through increased demand.

Why Invest in Turkey?

• High rental yields
• Growing market amongst both local buyers and foreign investors
• Low entry level prices
• High potential capital appreciation
• Growing mortgage market
• High build standards and quality
• Property prices set to increase rapidly in the coming years
• An official EU candidate since 2005
• Capital gains tax incentives for long term investors
• Strong tourism market continuously growing
• The country has undergone political and economical reforms in recent years

Markets News – Morocco Receives an Influx of Middle Eastern Property Developers.

Several of the UAE’s largest property developers are making the move into the Moroccan market. Decisions to begin large scale luxury developments in Morocco have stemmed from extensive studies into the location for its sustainable economic potential as an emerging market.

Various companies have been developing joint structures for their entry into Morocco to enable a stronger presence and security. The expansion of operations will bring several billion US dollars into areas throughout Morocco, with some projects planned for the cities and others designed for the touristic coast resort regions.

Many of the projects are still in the planning stages with the developers considering not only residential developments, yet also commercial, agricultural, industrial and hospitality projects. Several areas of Morocco have experienced capital growth of up to 30% in the past few years, further fuelling investor interest on both the developer and the buyer’s sides.

The interest in Morocco for some of the world’s largest names in property development offers a positive outlook for the average investor who has already bought, or is planning to buy in this market. Coupled with the government’s integration for increasing tourism and foreign property ownership, the Moroccan market appears set to continue its growing economic strength.
Property Investing Morocco Homepage

Property Market Focus - May 27, 2009

Coming Next Month!

Property Investing Panama

Next month we will be looking into Panama, a holiday and investment hotspot for many North Americans, leaping onto the European radar in recent years. The small Central American nation considered to be one of the safest places in the world, is attracting interest for its growing demand in its real estate market.

Linking North and South America, Panama sits in a privileged location offering a wealth of natural beauty and an international outlook. Some of the main attractions of Panama to property investors lie with the Free Trade Zone and absence of taxes, offering genuine financial privacy. Other main attractions are its stable political situation and a dollar based economy.

Panama has been a location of preference for retirement and holiday home buyers from North America. The country has been considered one of the top 10 locations for retirement for several years running, offering low additional purchasing costs and more affordable housing in comparison to North America and Europe.
Property Investing Panama Homepage

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