Property and Real Estate in Turkey – Why it is a Good Investment
Property and Real Estate in Turkey – Why it is a Good Investment
Turkey is a country filled with culture and by many regarded as a modern country popular with tourists and property investors. A land with a long history and traditions, Turkey offers an interesting blend of East and European, with temperatures and seashores of white sand that outshines many of the typical hot spots of Europe. Low priced properties, impending EU membership and a strong economy make it a highly attractive option. The rights of property investors have recently been improved and Turkey is now accepted as one of the top investment areas in Europe.
Some of the key factors to be aware of if interested in property investment in Turkey are mentioned below.
Turkey has many qualities to draw outside visitors, summers that lasts longer than many other destinations, a spectacular coast, tasteful cookery and many activities. The country has a modern infrastructure in place and the cost of living is still low. Turkey is determined to become a member of the EU; if implemented the growth potential on Turkey real estate and property investment will be significant. Since the country has shown large efforts to achieve EU status it has made a good impression on investors and confidence in the country has grown considerably. The government has recently signed an agreement with Asia and Africa to improve relations and is persistently updating policies to abide by EU guidelines.
Turkey attracts investors looking for a retirement home, require a second or holiday home or just for investment purposes. The most popular regions for property investments are Istanbul as the buy-to-let prospects are good, and of course the Aegean and Mediterranean coastal regions. GBP 1.5 billion was invested in the property market during 2005 alone and Turkey has more than seventy thousand properties owned by foreigners.
Overseas investment is encouraged by the government which has lessened its control over foreign trade and investment and privatised state-owned companies. Due to this, the investments in the country grew considerably, in some regions a predominantly high capital growth in excess of 30% on property investment has been realised.
Turkey has experienced new planning and building guidelines and regulations in an attempt to control construction in the country. As the country rapidly evolves into a key destination for property investors, developments in tourist regions will be strictly monitored to make sure the natural beauty of the growing areas are maintained. The tourist industry is of prime importance with over twenty five million tourists visiting the country each year.
With a population of approximately 70 million there is a high requirement for property from the local population. The majority of inhabitants in Turkey are under the age of thirty and, if the EU application is accepted, demand within the country is expected to increase further. Turkey’s GDP growth rate from 2002 to 2007 averaged 7.4% making it one of the fastest developing economies worldwide. For 2008, the World Bank has predicted a 5.4% GDP growth rate.
Turkey has launched a global advertising campaign promotion itself as an all year round holiday destination. It is expected this will encourage growth in the real estate market and prices will increase gradually over the next few years until they are in line with the rest of Europe. The tourism industry is expected to increase as major infrastructure plans for the coastal regions upgrade and improve transport systems and facilities. As the number of flights and flight routes increase, Turkey will be more reachable for tourists and there will be a higher demand for quality accommodation.
Seen as a unique, flexible and welcoming nation, forecasts are that Turkey’s tourism market will grow considerably in the next few years. In turn, this will generate a strong GDP growth, higher employment and considerably higher foreign direct investment. Turkey is in a very good position to grow into one of the most significant countries worldwide. At this exciting time of economic growth and universal recognition, Turkey real estate investment can provide buyers low prices, potential long-term capital appreciation and soaring rental yields.
Mark Burns has extensive experience in the overseas investment property market, specializing in property in Turkey, and through the www.offplanworld.tv website provides extensive coverage on the world’s major property investment markets including Turkey real estate.
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