Turkey has the 15th largest economy in the world and as of Sept 2007, over 17,000 companies with international capital were operating in Turkey. Its excellent positioning at the crossroads of the world trade routes and its proximity to the developing energy producing areas are factors that further raise its economic potential for future years and Turkish property investment will yield excellent returns for early investors. There are many factors which make investment property in Turkey worth consideration.
Excellent capital growth of around 25% per annum. Land prices in Turkey has doubled in many cases and property prices have risen by up to 40%. Taking an average of 25% capital growth, a property purchased for £60,000 with sustained growth over five years, will have a market value of £183,100 – resulting in a whopping 305% return on investment. Many investors are taking advantage of the current low Turkish property prices andgrowing rental market whilst waiting for Turkey’s inclusion into the EU, which will substantially increase both property prices and the tourism infrastructure, which is already having millions of dollars poured into it. The introduction of Non Resident Mortgage options in Turkey is also helping to fuel the currently hot market.
Turkish property investment is not only appealing to those looking for a high return, but due to the low cost of living, Turkey is also an excellent location for anyone looking to relocate or purchase a holiday home. The sheer vastness of Turkey offers investors a wide choice of areas in which to investtheir money, and the large population means the it has a strong internal property market. Many parts of Turkey are rapidly expanding to keep up with the increasing levels of tourism growth, and its already solid infrastructure is rapidly improving. A major indication of the current state of any property market is the tourist trade which in Turkey is expanding rapidly as the country gains more exposure. With over 25million tourists per annum, and an unexpected boom due to the £ – euro currency exchange rate in 2008 and also in 2015, this translates into a solid rental yield for buy to let investors. The Turkish rental market compared to other popular tourist destinations, is still in itsearly days. High property prices in many European markets have resulted in a maturing effect on the buy to let market in these countries and further building will certainly lead to a decline in those markets as a result of excess supply. Turkey however, is still many years away from a mature buy to let market. With theincrease of tourist attractions such as new golf courses, marinas, shopping centres,hotels ect. will positively impact the rental market in many areas around Turkey. Turkish summers are also a long longer than many other European destinations, making the rental season longer and therefore more profitable.The future therefore looks decidedly rosy for Turkish property investment, whether itbe to take advantage of the high capital growth, the increasing rental market, orpurely for a holiday home that can be used all year round due to the fantastic climate.