Turkish Property Market - A Gold Mine on the Aegean Coast
Since the Turkish government changed the legislation regarding Turkish property in late 2001, the result of which allowed foreigners to buy 100% freehold properties in their names, the number of properties in Turkey owned by foreigners increased from 37,681 in 2001 to 69,781 in December 2006, the majority of which was along the Aegean coast.Brits played a huge role in the augmentation of these numbers, having already discovered the beauty of the Aegean Coast, the famous Turkish hospitality and the extraordinary authentic atmosphere. According to the Land Registry in Turkey the number of the Britons who own property in Turkey has increased as follows;
Property Investments in Turkey
British Buyers:
July 03
Apr 05
July 06
Dec 06
Apr 05
July 06
Dec 06
2,964
10,171
14,032
17,443
10,171
14,032
17,443
General Directorate of Land Registry
The chart above indicates that the increase in the number of British people who bought property in Turkey between the 19th July 2003 and 31st December 2006 had increased by an astonishing 488%.
This huge increase is down to many factors, including the improvements in the economical structure, as well as the change in legislation and natural pull of Turkey as an ideal holiday destination, which made a big impact to attract British investors to Turkey.
Despite having experienced a huge financial crisis in 2001, Turkey has, with the help of the International Monetary Fund (IMF), completed very significant structural changes in the financial sector, such as changing the exchange rate regime and making the Central Bank an independent financial entity instead of supplying money to the government for their deficits.
Improvement in the financial sector and the growing trust of the foreign investors lead a huge amount of Foreign Direct Investments (FDI) into the country. As such, the interest rates fell to 8% having experienced rates as high as 20% or 30% for decades. The inflation rate and unemployment rate have both returned to under 10%.
All in all, the macroeconomic indicators are now in Turkey’s favour and this atmosphere undoubtedly creates great investment opportunities for all types of investors.
Starting the EU accession talks in late 2005 has enhanced the good investment ambience in Turkey. The government efforts to join the EU and the satisfactory changes in legislation encourage he investors as well as holidaymakers. These efforts have been well recognised, and appreciated by the EU.
Beside the good economic environment and the EU talks, the demand from Turkey's young dynamic population for properties demonstrates a great positive impact in the construction sector, especially after the government launched mortgages for Turkish Citizens. Although the system undoubtedly has room for improvement, the property prices will undeniably be affected by higher percentage increases in the following years.
Beyond the magic of the numbers and economical data, there is definitely more to Turkey. Such factors as it's natural beauty, over 300 days of sunshine, 8,333km coastline, one of the oldest and richest cuisines in the world, great historical structures from ancient times and impressive sites of rich cultural heritage, the hospitable people and, of course, the low cost of living mean Turkey is a desirable destination for a holiday; meaning the potential to rent the property out and sell it on are increased, increasing the revenue made by the property.
These factors are prevalent along the Aegean coast, where the property market is one of the strongest emerging markets, not only in Turkey but in the world. As these factors; the friendliness of the people, the scenery, the climate and more, are highly unlikely to change, the Aegean coast is as solid and as valuable as a gold mine, making it a great opportunity for investors and holiday-makers alike.
The chart above indicates that the increase in the number of British people who bought property in Turkey between the 19th July 2003 and 31st December 2006 had increased by an astonishing 488%.
This huge increase is down to many factors, including the improvements in the economical structure, as well as the change in legislation and natural pull of Turkey as an ideal holiday destination, which made a big impact to attract British investors to Turkey.
Despite having experienced a huge financial crisis in 2001, Turkey has, with the help of the International Monetary Fund (IMF), completed very significant structural changes in the financial sector, such as changing the exchange rate regime and making the Central Bank an independent financial entity instead of supplying money to the government for their deficits.
Improvement in the financial sector and the growing trust of the foreign investors lead a huge amount of Foreign Direct Investments (FDI) into the country. As such, the interest rates fell to 8% having experienced rates as high as 20% or 30% for decades. The inflation rate and unemployment rate have both returned to under 10%.
All in all, the macroeconomic indicators are now in Turkey’s favour and this atmosphere undoubtedly creates great investment opportunities for all types of investors.
Starting the EU accession talks in late 2005 has enhanced the good investment ambience in Turkey. The government efforts to join the EU and the satisfactory changes in legislation encourage he investors as well as holidaymakers. These efforts have been well recognised, and appreciated by the EU.
Beside the good economic environment and the EU talks, the demand from Turkey's young dynamic population for properties demonstrates a great positive impact in the construction sector, especially after the government launched mortgages for Turkish Citizens. Although the system undoubtedly has room for improvement, the property prices will undeniably be affected by higher percentage increases in the following years.
Beyond the magic of the numbers and economical data, there is definitely more to Turkey. Such factors as it's natural beauty, over 300 days of sunshine, 8,333km coastline, one of the oldest and richest cuisines in the world, great historical structures from ancient times and impressive sites of rich cultural heritage, the hospitable people and, of course, the low cost of living mean Turkey is a desirable destination for a holiday; meaning the potential to rent the property out and sell it on are increased, increasing the revenue made by the property.
These factors are prevalent along the Aegean coast, where the property market is one of the strongest emerging markets, not only in Turkey but in the world. As these factors; the friendliness of the people, the scenery, the climate and more, are highly unlikely to change, the Aegean coast is as solid and as valuable as a gold mine, making it a great opportunity for investors and holiday-makers alike.