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Where Spain was once the new kid on the block, Turkey is the next generation coming through to steal a part of its thunder as cheaper prices and increasing accessibility make it the latest hotspot. In the late ‘80s and early ‘90s, the investment of huge amounts of both public and private money kick-started the Spanish property boom that has been running for the last 10 years or so. A combination of government determination to create a vibrant, modern property market and widespread confidence in the future from businesses of all types proved irresistible. On the back of this sustained investment, individual investors who bought Spanish property in the right locations have seen their personal investment double, triple or even quadruple in value. Now, in the ‘00s we can see the same pattern starting to repeat in Turkey. Both Dalaman and Bodrum airports are expecting significant investment and improvement over the next two to three years as demand increases, especially with the prospect of more winter flights and ‘low cost’ carriers. A massive road improvement plan is well underway along the coastal routes from the airports and into the resorts around Bodrum. All the major sections of road linking Bodrum and Altinkum are either in the process of being upgraded to dual carriageway or will be soon. Many local roads are also being upgraded, improving access to dozens of relatively undiscovered coastal resorts. Over 13,000 Britons have already been sold on the delights of owning a second property in Turkey. The year round Mediterranean climate, blue flag beaches, cultural treasures, direct flights from the UK and cheap property prices make it hard to resist. But for those who are still debating the merits of this European treasure here are 5 reasons to invest in a Turkish property in 2007: 1. Low property prices With the nations favourite holiday home destination, Spain, averaging property prices of €245,000 it is no wonder that buyers are looking elsewhere. Current prices in Turkey are on a par with 1998 Spanish prices and when you can buy a 2 bedroom apartment in Altinkum for only £18,000, the price of an average family car, the decision is simple. The market is vibrant with apartments, townhouses and villas available. The demand for new build properties, both from the domestic and overseas market, is ever increasing as Turkey continues to address its housing stock deficit of some 600,000 homes. As demand increases so too does price. Land values have doubled in the last 2 years and property prices have risen by 25% - 40% in some of the more popular costal regions in the last year alone. There are value for money properties still to be found however in Altinkum, Akbuk, Bodrum peninsula and Kusadsi. Didim, next to the famous resort of Altinkum, is a new area for investment largely due to the luxury harbour under development. Investment in this particular area will bring good long term investment and a solid future in Turkey. Over the next 4 years another large golf course is scheduled making demand for this location high along with strong capital appreciation. 2. Impending EU accession Turkey reached a milestone in October 2005 when full EU membership talks began. The path has undoubtedly not been smooth but Turkey has adopted EU reforms in an effort to align with its European partners and full accession is expected by 2015. EU accession however is often a double edged sword for the property investor. On the one hand levels of foreign direct investment increase, budget airlines move in, tax laws are aligned with Europe and new finance products are available. But on the other hand as all these factors facilitate property purchase so the purchase price rises. It would seem that now is the time for the canny investor to switch the focus from the new EU members (Bulgaria, Romania etc…) to Turkey and watch the capital gain as EU accession approaches. 3. Opening of New Golf Courses Situated on the Bodrum peninsula the Vita Park Golf Course is the biggest golf complex in Turkey. Golf is not a new phenomenon in Turkey (Istanbul Golf Club has been welcoming visitors since 1895) but as foreign investment has poured in so the development of high quality leisure facilities has occurred. Vita Park comprises two 18 hole PGA standard courses covering 5850 metres and offers golfers the charm and challenge of an Old World course with a feel that is reminiscent of traditional Scottish links. Other Golf Courses in Akbuk and Altinkum are also planned for the near future. 4. New mortgages available Financing a property purchase in Turkey has been, in the past, somewhat challenging requiring cash or bank loans to make a purchase. However with new mortgage legislation now in place a wave of finance products offering fixed interest rate mortgages are now available and local Turkish banks expected to offer good rate mortgages for Foreigners later this year. This spells good news for overseas buyers, especially those who are first time buyers. These mortgages are also now available to the local population increasing their chances of owning a home however as property ownership increases so too do property prices so investors will have to act quickly to take advantage of the new finance options available and still get a bargain. 5. High rental potential As well as being an ideal destination for your own holiday home, Turkey also offers a lucrative buy to let opportunity. Tourist levels continue to rise year on year from 21 million in 2005 to 25 million in 2006 and 29 million expected in 2007. This coupled with a large local population (70 million +) and increasing numbers of foreign expatriates (currently 34,000) presents the option of purchasing a property to provide rental income.
Altinkum
/ Akbuk >>
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