Turkey » Market Report

Turkey is a beautiful, divine, exciting country full of opportunities. The number of tourists have been increasing by 10-15 percent each year. In the last few years more and more northern Europeans have also chosen to invest in real estate in Turkey.

A few years ago the rules governing foreigners buying property in Turkey were relaxed and since then interest has increased dramatically. The reason for this is simple: the prices are very attractive especially when compared to similar properties in France, Italy or Spain.

In conjunction with the increasing interest for properties, the prices have also increased and for most properties this has been by 20-40 percent per year. This may sound unbelievable but it is nonetheless true and all the signs are that it will not stop there. The interest of foreign media in Turkey has never been greater. The papers write almost daily about the Turkish property market and several larger nationwide TV-stations have programmes about buying property in Turkey.

The fact that Turkey has received a date for starting negotiations for membership of the European Union also affects the ever increasing interest in property investment in the country.

The Turkish property market is witnessing the early stages of an immense boom triggered off by a vital change in the law relating to the ownership of property by foreigners. This only happened at the end of 2002, but it has meant that prices have been rocketing ever since. As other Mediterranean countries speedily become too expensive, it seems that all eyes are on Turkey. Notably, the huge Spanish property developers have started investigations into land and property purchase in Turkey as they seek to jump in right at the start and snap up as much land as possible.

With so many indicators it is very clear to see that Turkey is at the beginning of a "property boom". A boom period generally indicates a time when demand for property outstrips supply. This is currently the situation in Turkey especially in the major investment areas such as Bodrum, Istanbul and Dalaman.

Turkey's steady annual increase in tourism means the country is experiencing an unprecedented level of international exposure, which is increasing the demand for Turkish property significantly. Prices in many coastal resorts have doubled in the last two years alone and yet there is discernible slow down on the horizon.

The country enduring appeal to visitors; its low property prices and the outstanding potential for capital growth have combined to make it a natural investment choice for an increasing number of overseas property buyers.

Figures from the Turkish government show that the foreigners invested in excess of $1.3 billion in the Turkish property market last year, particularly those from the UK, Ireland, Germany and Canada.

Turkey Rental  market received a further boost with the passing of a bill in the Turkish parliament in February of this year that will make mortgages accessible in the country for the first time.

Our Forecast

International Property Brokers forecast that Turkey is expected to become EU member in next 9 or 10 years so its good time for the investors to purchase property before the country becomes the EU member. This inclusion of Turkey in EU will cause doubling of property prices. Turkish property investment future looks growing with increasing rental market.