Investment opportunities for 2010 in Turkey

Turkey is becoming increasingly popular with tourists as well as a offering excellent investment opportunities with the Financial Times recently voting Turkey into the top 10 investment countries for 2009 and the Turkish newspaper 'Hurriyet News' anticipating a property boom in 2010.

Turkey has always been good value for money, but these days, it has more to offer the British second-homeowner, and the top end of the market is blossoming. White-washed stucco houses, with infinity pools, hammams and citrus gardens, are springing up in areas such as Göcek, Kalkan and the Bodrum Peninsula and they sell for up to £6 million. ‘The purchase price has moved up,' says Julian Walker of Spot Blue, a specialist in Turkish property. ‘People are now buying bigger properties.'

The Association of British Travel Agents (ABTA) said that Turkey overtook Spain last year as the most popular overseas destination for UK tourists, and overall tourism has risen 14% to 24 million visitors, according to the Turkish tourist office. And, as Turkey isn't yet part of the Eurozone, property is more affordable for sterling-based buyers than in France or Italy, and the cost of living is 60% less than the UK.

The Financial Times recently voted Turkey into the top 10 investments for 2009, with particular attention paid to the Altinkum and Bodrum areas, and Assetz lists it as one of the best investment opportunities for 2010. ‘The Turkish property market offers a variety of options for both tourists and buy-to-let investors hoping to exploit the market,' says Rhiannon Williamson of Assetz. ‘At its simplest, it offers hot weather and plenty of good clean beaches. On the other hand, the country has a rich history that's worth more than a passing glance.'

Turkish News Provider Hurriyet www.hurriyetdailynews.com/ is anticipating a property boom in 2010. Mr Walker is less bullish, but expects prices to rise steadily over the next few years. ‘A lot of people from Britain haven't visited Turkey before and are anxious about it. But once they see how much beautiful, open space there is, they understand its potential.'

The olive-green hills, white houses, bougainvillea and bright turquoise sea come as a surprise to many visitors, according to James Dearsley of Atlas International, a Turkish property agency. ‘In parts of the Bodrum peninsula, there are bars on stilts like you find in the Maldives, where you can watch the sunset. The country is completely underrated if you've got any money to spend.'

The top end of the property market is fuelled by buyers from northern Europe, who favour the large, detached houses surrounded by gardens in picturesque areas such as Kalkan and Göcek, costing from about £275,000. It's not unreasonable, says Mr Walker, to expect a rental yield of between 6% and 10% a year from your apartment or villa in Turkey. A detached two-bedroom villa with a pool in an exclusive part of the country rents out from £600 per week, half as much as an average villa in the South of France, although rooms, balconies, gardens and pools all tend to be bigger.

Nick Barnes, an independent property research analyst, believes Altinkum, Belek and the less developed areas around Bodrum and Didom will be the focus of growth for the next few years. Property prices are also rising in the south-west of the country around Alanya, and in the hilltop towns of Urla and Milas, due to increased interest from buyers from mainland Europe. Didim is still the cheapest place to buy along the Aegean coast as well as a popular tourist hot spot, and the investment opportunities for 2010 in this area, especially now the new marina is complete, are very good.

Deutsche Bank predicts a growth of between 5% and 6% consistently over the next 10-15 years. ‘There are plenty of other buyers apart from the British in the market, which suggests prices in Turkey will remain stable,' adds Mr Walker. ‘It wasn't drawn into mass development on such a large scale as other developing countries. The Turks are proper market traders-we could probably learn
a thing or two from them.'

Hot tips: buying in Turkey in 2010

There are limits on foreign buyers you can't buy land of strategic, religious or cultural importance
Buy well-built property in a picturesque location, preferably where Turks are buying

There's still the occasional horror story. Use a British lawyer, and consider buying a built property rather than one off-plan

At present, if you sell your Turkish property within the first five years of your ownership, there's a 15% sliding-scale property capital-gains tax due on any profit. After five years, it's capital-gains free. Tax paid to the Turkish government will be offset in the UK due to the Reciprocal Taxation agreement between Turkey and the UK

Flight access is improving each year. You can fly from a number of British airports to Bodrum, Antalya, Dalaman, Izmir or Istanbul, but air routes vary depending on whether it's low or high season

Article taken from: http://www.countrylife.co.uk

Investment property in Turkey is not only appealing to those looking for a high return or a buy to let property, but due to the low cost of living, diversity of the country and friendliness of the people, Turkey is also an excellent location for holiday homes or relocation. For advice or information on the best place to invest in 2010, please contact us. contact us