Turkish Property: Reasons to be positive

Paul Beasley says that the Turkish lira may be experiencing some short-term turbulence, but property agents are talking up the mid-term prospects of Turkey’s property market. Moneycorp, a currency exchange specialist, says that a recent decrease in the value of the Turkish lira has helped to create new bargains for sterling buyers in recent months.

Despite some short-term upheaval in the Turkish economy, Turkish property agents pointed out several fators that should ensure Turkey offers a solid investment potential on a mid- to long-term basis.

First factor is the readiness to adopt an ‘open skies’ policy in the near future which often results to low-cost flights. With Easyjet flight schedule of going to Istanbul three times a week, many industry commentators believe that low-cost flights to Turkey’s Aegean and Mediterranean coastlines are bound to happen.

Second to this is property agents remain confident that the health of Turkey’s property market is not dependent upon European Union membership, which was the same way for countries like Estonia nd the Czech Republic.

“Everyone in Turkey remains optimistic about Turkey’s eventual EU membership. Even before EU talks Turkey has already become a hotspot for properties because of the ease in purchasing the property, constant price rises and low taxes. A Brithish national can purchase a property in his or her name without going through any hassle.” As was commented by Nadir Nuritidinov of ASEM Construction which is marketing developments in the resorts of Altinkum and Bodrum.

The Turkish government has started to reach out to foreign investors, including overseas property buyers. This is evident in the reduced taxes for overseas investors and easier property purchase law for foreigners. Britain tops the list of foreign nationals buying Turkey property. When the new laws were implemented, 588 British citizens bought 420 properties in Turkey. 8,625 British nationals owned 6,333 properties in Turkey during the two years before the new laws took effect. Majority of British purchases are within the towns of Fethiye and Didim.

Third and last factor is the offering of comprehensive mortgage products to buyers. According to Amar Sodhi of Avatar International, “The lack of any mortgage product thus far has created a price ceiling on the property market, controlling much higher price increases. However, the introduction of Turkish mortgages is imminent and banks have started working on products that foreign investors will be eligible for.”

Although Nuritidinov and Sodhi don’t believe that low-cost flights and mortgages will help maintain current rate of property price increases, said to be as high as 25 per cent per annum, they feel that double-digit growth is bearable into the mid-term especially with the eventual EU membership.

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Turkish Property: Reasons to be positive

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