The economic turmoil of the past 12-18 months has seen considerable changes in the market for people looking to purchase property overseas. Traditional property markets, which have experienced consistent growth over the past ten years, have suddenly had to cope with large decreases in demand, causing issues such as over-supply in the housing market, as well as more localised economic difficulties within the regions.
One country who appears to have survived the recent economic squall however is Turkey, where the demand for holiday homes and investment properties is now higher than ever. In particular, the Aegean and Mediterranean coastal resorts such as Bodrum, Fethiye, Altinkum and Side are today considered to be one of the most popular locations for overseas property investors to purchase, as investors seek to capitalise on the considerable growth potential offered by modern day Turkey.
So why has Turkey managed to avoid the large scale drops in demand which have been experienced in so many other property markets? More importantly, why is demand for property in Turkey today increasing at such a considerable rate, with the global economy only hinting at a long term economic recovery? Without doubt, there are a large number of factors at play, which have combined over the course of the past two years, to create a situation where Turkey now offers investors the potential for considerable growth over the long term.
Looking at a macro level, it would be fair to say that the primary driver behind the increased demand for property in Turkey has been the considerable increase in tourism throughout the country, particularly surrounding the more visited destinations such as Istanbul, Fethiye, Bodrum and Altinkum. All of these areas have seen large increases in the numbers of visitors in recent years, as the larger European low cost airlines have all opened up new routes into the more popular destinations within Turkey. With Turkey being just 4-5 hours flight from the majority of major European travel hubs, and return flights to new airports such as Dalaman costing just £80.00, it is easy to see why Turkey has experienced such considerable growth in visitor numbers in recent years.
Turkey itself has taken on the challenge of increasing tourism and inward investment with enthusiasm, and has recently undertaken a considerable investment in its infrastructure to cater for the anticipated growth. The upgrading of major airports and motorways has increased the accessibility of the more remote destinations, which has resulted in an increased distribution of foreign direct investment throughout the country as a whole.
As well as the goal of attracting more foreign investment, Turkey has the added incentive of ensuring it is ready for its proposed entry into the European Union. Whilst there remains a number of political hurdles to be addressed on this path, Turkey’s potential assession to full membership offers further potential for countrywide development and growth, and has undoubtedly caught the eye of the ‘early bird’ investor.
With the price of property in Turkey still relatively low in comparison with the more traditional overseas property markets, investing today does make long term commercial sense. The lower prices of property, coupled with the recent advent of mortgages in Turkey have merely served to facilitate the overall incentive and process.
Overall, it is easy to see why Turkey has bucked the trend in recent years, and today is being heralded as one of the leading overseas property investments. Low prices, high building standards and considerable scope for long term growth are likely to ensure that the demand for property in Turkey will only increase in the next few years.
Permanent link to this post: Turkey leads the way for overseas property investors seeking refuge from the economic turmoil
From the Real Estate: building, selling, buying, investing weblog
see also:
- Property investors turn to Bodrum for opportunity.
- Linking Europe with Asia and the Middle East, Turkey has a thriving tourism industry that is experiencing continued expansion as the country’s application to accede to the EU makes progress. In anticipation of economic growth, and following a recent change in government law regarding foreign ownership, property investment has rocketed and the trend is set [...]...
- The 2009 Property Investors
- When the effects marketing was booming prior to August 2007 many new property investors entered the buy-to-let market, buying one and two bed properties with light-to-get mortgages. The market has now dramatically changed and here we look at the predictions for the buy-to-let market in 2009. Firstly there is a new type of hotelier – homeowners [...]...
