So is Turkey a holiday fad? Or a whole new property trend?

So is Turkey a holiday fad that gets forgotten about after we return home after the Summer visit, or is there a sustainable property market waiting to be discovered?

We as a nation seem to be waking up to the attractions of Turkey. People are either planning a visit, or have been to Turkey. Such has been the dissatisfaction with the exchange rate of the Euro in recent Summers, that many holiday-makers have sought locations beyond the Eurozone, in a quest to get better value-for-money. For the British, the exchange rate with the Turkish Lira, has been historically stronger, but it is better than with the Euro.

So what has Turkey got to offer beyond being an attractive holiday destination?

A decade of sound economic decisions and management, has helped Turkey come through the global crises in much better shape than many countries. Whilst 2008 and early 2009 economic growth was negative, (-4.75% 2009), it recovered once the flow of capital started again. Growth is likely to be above 6% this year as a robust economic recovery takes hold. In fact the Organisation for Economic Cooperation and Development (OECD) recognises Turkey as its fastest growing economy.

Political stability and opening of EU accession negotiations, significantly improved confidence in the management of the economy. Although recent press coverage has hinted that the nation has mixed feelings about EU accession, many believe the country is doing quite nicely on its own, without having to join. Well its current economic performance underlines this sentiment.

What’s more, Turkey’s domestic financial markets have remained more contained than in the rest of Emerging Europe, reflecting a smaller foreign-financed credit boom and more restrictive regulations

Its largest city, Istanbul (and the ancient capital of the Eastern Roman Empire then known as Constantinople) is becoming a magnet for investors. It has always been geographically important, as a place where East meets West. And now as the suburbs start to get more transportation connections to the centre, they open themselves up to property investors, seeking desirable, long-term rentable property that can deliver decent returns.  The plan is to transport more than 1 million commuters each day from the western suburbs according to the city's Mayor.                       

Tourism Overview

Turkey continues to attract large numbers of tourists. According to the Turkish Statistical Institute, tourism numbers increased over 7% in the 2^nd quarter of 2010, compared with the same period last year.

Total visitor numbers were 28.4m in 2009.

Holidaying in the country is the first step to familiarisation and this often leads to people becoming interested in buying.

104,000 foreigners own property in Turkey, of which Britons are the largest single group at 32,000 according to the Turkish Land Registry (July 2010).

Well, so what attracts them?

Well there’s the obvious Sun and Sea, with 3 coasts lapped by 3 different seas, there is certainly plenty of variety along the Mediterranean, Aegean and Black sea coasts.

And what about prices? Well many see Turkey as a great holiday spot because of its currency and this can be said for the property market too. There are traditional favourites such as the famous Bodrum and less well known areas like Kusadasi, where some property can be up to 30% cheaper.

Oh and then there’s the golf…

The Ankara government and the Turkish Golf Federation have identified areas for up to 100 new courses to be built by 2014, some in well-known tourist destinations such as the Aegean coast and others in hitherto under-provided golf areas such as Bodrum and Cesme. Already there is plenty of golf being played in the Antalya area and it is a serious alternative to other traditional golfing spots such as Spain or Portugal, where prices may not be so keen.

An estimated one person in every 10,000 Turkish inhabitants plays golf – a 10th of the level of Portugal and 70 times lower than in Spain, but a survey by business consultancy KPMG shows the number of rounds played in Turkey is on the increase and the country’s courses have not suffered any drop-off in business during the recession because of their reliance on low-cost golf package holidays and fees, off-setting many effects of the downturn.

So Turkey could well be here to stay, not only as an established holiday destination, but also as an interesting property market.

Author: Louise Reynolds, posted 4^th October, '10

Property Venture^® is an independent, UK-based agent. We help time-strapped investors and holiday home purchasers, buy abroad more easily and safely than they can on their own.

We visit the countries you buy in, so we can offer common-sense, grounded advice. Overseas members of NAEA. This means we have been subjected to the membership criteria and have signed up to follow the professional Code of Conduct established to help you, the potential buyer or investor, buy property with confidence