Property in Turkey
June 15, 2008The latest property restrictions won't deter buyers, says Zoe Dare Hall
Source: The Daily Telegraph.
Just as Turkey looks as if it is shaping up to become the next major holiday home and investment destination, its government has stopped title deeds being issued to foreigners.
The country did it for six months in 2005, too, in an attempt to prevent large tracts of rural land being bought up. The latest ban,announced in April and awaiting ratification in parliament, has a similar purpose, limiting foreign ownership to 10 per cent of the land in any town.
Agents selling in Turkey expect the restriction to be lifted soon.
Even 10 per cent foreign ownership of land is a high figure that is unlikely to ever be met. Even in Spain, 95 per cent of sales are to the domestic market. In Turkey, there are 77,000 foreign property owners out of a population of 77 million, which is 0.1 per cent, so 10 per cent is light years away.
You have to remember Turkey is a poor country, 20 years behind the West in its property market, laws and business practice. And even though finance is available, it is also still typically a cash market.
Apart from this blip, Turkey's property market is proving resilient, with prices expected to rise by 10 to 15 per cent this year, says Knight Frank.
The currency exchange company Moneycorp reports that British interest in Turkish property has trebled in the past year. A NatWest survey of mortgage lenders predicts that Turkey, where 22,650 Brits own property, will be the third most popular destination for UK buyers in the next three years, with most sticking to the area between Kusadasi on the Aegean coast and Alanya on the Med.
In its attempts to double tourist numbers to 10 million by 2010, the Turkish government is investing in infrastructure and attractions, including new golf courses in Dalaman and Belek.
It is also encouraging new air routes and airport expansion. EasyJet now flies to Dalaman and Istanbul, BA to Antalya. A new international airport at Edremit will open up areas around Ayvalik, north of Izmir, until now, despite good beaches, great windsurfing and attractive property, the preserve of Turkish buyers.
Beyond its appeal as a value-for-money location for holiday homes,outside pricier Istanbul or Bodrum, the average two-bedroom apartment costs £35,000 to £90,000, Turkey is also drawing investors to Istanbul, where new development is taking place on both sides of the Bosphorus.
Prices average about £700-£900 per square metre, with studios from £40,000 in developments such as Life Studio near Ataturk international airport or Astrum Towers, six miles from the airport, which the agent predicts will see annual growth of 30 per cent.
BODRUM FAR FROM HUMDRUM
Lively resorts, leisure facilities and low priced newbuild properties make the Bodrum peninsula one of Turkeys best-known areas for British visitors, while quieter spots such as Yalikavak and Gumusluk appeal to wealthy Turkish property buyers wanting £1m-plus villas.
Bodrum is one of the most popular coastal regions,and Turkeys appeal is widening to take in growing numbers of Eastern European holidaymakers as well as British. Small apartments can achieve rents of £300 a week.
In Akbuk, an up and coming former fishing village, you can buy three bedroom detached villas at Akbuk Bay from £70,000.
KALKAN TOAST OF THE TURQUOISE COAST
On the south wests Turquoise Coast, near Dalaman airport and ancient archaeological sites, the old Ottoman town of Kalkan sits round a natural harbour at the foot of the Toros mountains.
DALAMAN AEGEAN GENIE
New flight routes and a new golf course are likely to boost property prices in the small Aegean coast resort of Dalaman, set among unspoilt rural scenery, where prices are currently lower than in nearby resorts.
With its golden beaches, azure seas and spectacular climate, Turkey is becoming the new destination of choice for sun-seeking travellers and property investors.