What's driving demand
Turkey looks
likely to be the European country to experience the
highest level of growth in property prices over the next 5
years. It has one of the world’s fastest growing
economies and property prices rose between 25 - 35% in
some coastal areas last year. Due to
strong demand, prices in some off plan developments are
rising by up to 20% even before any building work commences.
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The
following Key factors are driving the growth:
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Turkey's Mediterranean
shore, called the Turquoise Coast, is nearly 1600 km (994
miles) long, scattered with fine-sand beaches and sprinkled
abundantly with classical cities turned to picturesque
ruins. The Taurus Mountains form a dramatic backdrop
along much of the coast, often dropping steeply right into
the sea, but in some places rivers have washed down enough
sediment over the ages to form beaches backed by fertile
alluvial plains good for growing cotton, vegetables, and
even tropical fruits like bananas.
Like Southern European countries,
Turkey enjoys a great climate with temperate; hot, dry
summers and mild, wetter winters.
Open property market, with lower costs than Western Europe
The
Turkish government equalized property buying
rules for foreign nationals in July 2003,
and by January 2005, the number
of foreigners owning property in Turkey
reached 51,000; 18% of them were British.
This figure is expected to rise by more than
6,000 each year. Foreign nationals are
estimated to have spent more than $1 billion
in buying property in Turkey in 2004.
Foreigner cannot currently raise mortgages
in Turkey - this is expected to change later
in 2006 leading to further increases in
property prices. Meanwhile many
investors mortgage or remortgage their UK
home to release funds to buy in Turkey.
Prices remain much lower
than in Western Europe, with many people commenting that
buying in Turkey today is like buying in Spain in the 1980's
Turkey has been on an upward trend since
2002, when near-economic collapse led to a
tough recovery programme agreed with the
IMF.
Turkey is now one of the fastest growing
economies in the world. GDP growth was
7.2% in 2004 (vs 2.3% average in EU).
Unemployment is falling, average wages are
increasing and interest rates are expected
to continue to reduce.
Turkey
has been granted so called 'market economy'
status, which is a key factor towards
gaining full membership of the EU and it is
expected that this decision will boost
confidence in Turkey's economy among
domestic and foreign investors.
In the
overseas property market history dictates
that where holidaymakers go, property buyers
will follow. So it's no surprise that as
tourist numbers to Turkey have swelled over
the past few years – no doubt helped by a
strong marketing campaign in the UK – so too
has interest in purchasing a home out there.
On the
subject of incredible increases, 2005 was a
record-breaking year for tourist arrivals to
Turkey with 21 million visitors pouring into
the country, and the Turkish government
envisages that 30 million tourists will be
arriving by 2010. "To nurture and meet this
increased volume of incoming tourists and
overseas property buyers, the government has
announced a range of multi-million dollar
investments and developments" The
investments include airport and road
improvements, steps to make Turkey a year
round destination including golf courses, 5
star resorts and a ski resort.
There are 3 international airports in
Southern Turkey - Bodrum, Dalaman and Alanya
- although in the winter flights from the UK
to Bodrum are only available from Heathrow.
The flight time is about 3.5 hours and there
are several airlines (Thomas Cook, Turkish
Airlines, British Airways and Exel).
While there are currently no low-cost
airline flights to Turkey, they are
expected!
A 3 month-tourist visa is issued at the
airport and costs £10.
If you
have chosen Turkey as the country to start
your new life or as the location for your
second home then you will be happy to hear
to hear that the Turkish people are amongst
the most hospitable in the world. You can
expect to be made to feel welcome from the
moment you arrive and it is likely that by
the time you leave you will have a large
circle of local friends and acquaintances
willing to put themselves out for you.
One of
the common misconceptions about Turkey is
that because it is a majority Muslim country
westerners are not welcomed by the locals.
In fact the constitution of the country
provides very well for a secular state and
the position of its non-Muslim minorities is
legally protected. This is not to say that
religion does not play a very important part
in society because when you arrive you will
realise that it obviously does. Rather, that
the population is very accepting of
alternative cultures and beliefs and as a
non-Muslim you will be made to feel just as
much at home as any fully practising Muslim.
You will, however, find that in the popular
tourist areas and the big cities, religion
is far less obvious than in the smaller
villages and towns and local people will
often be found enjoying a drink after work,
partying the night away and generally
enjoying all the same hedonistic pleasures
as much of the UK population.
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