Turkey as a whole has an impressive record for property investment within the past few years, with the popularity of many areas resulting in increased housing prices and sparking huge investment potential as a result.
What’s even more attractive to investors is the fact that, in comparison to European housing costs, the actual price of property in Turkey is still low – to the extent it’s not unusual to be able to buy a one bedroom property in a pleasant coastal resort with access to a communal pool for around £24,000.
In fact, a recent report by chartered accountancy firm Ernst and Young showed that Turkey was “the second most attractive property market in Europe for real estate investors.” According to the European Real Estate Assets Investment Trend Indicator 2013 both the availability of good quality housing and a stable economy has led to Turkey property investment soaring in global terms. Russian, Dutch, German and UK citizens have all been investing in Turkey within the past 12 months with the number of non-Turkish residents buying property and land in the country growing steadily.
House prices in Turkey actually rose by 9.13 per cent for the last six months of 2012. While the go ahead for new builds has risen by 16 per cent. Mortgage interest rates meanwhile have helped the situation along nicely, having fallen steadily over the past decade.
House Price Rises in Turkey’s Cities and Regions
According to the REIDIN Turkey residential property price indices (TRPPIs) – which looks at seven cities – property values have risen highest in Antalya (by as much as 22.62 per cent) year on year to January 2013. Next highest was Istanbul at 19.47 per cent and third was Adana at 16.54 per cent. The price for new build houses throughout Turkey rose by 12.5 per cent, according to the Central Bank of the Republic of Turkey (CBRT).
It’s possible for non-Turkish residents to buy around 10 per cent of housing and land in zoned areas such as cities, resorts and towns in Turkey. This includes property for sale in Fethiye, Kalkan and other popular coastal areas. Only property within military zones are out of bounds to foreigners.
A spokesman for Oceanwide Properties Turkey said: “No doubt about it, Turkey is becoming an increasingly popular area for non-Turkish residents to invest in right enough. All the conditions are right – low mortgage rates, government incentives, low buying prices, a stable economy and investment in both infrastructure and tourism in the country. The Turkish government is actually making it easier for non-Turkish residents to buy property here.”
The new airport in Istanbul has improved access to Turkish city and coastal regions for holidaymakers while the government has strengthened many cities by knocking down older buildings and erecting earthquake-proof offices and housing in their place.
For more information on moving abroad to Turkey and investing in property there, take a look at our Oceanwide Properties and check out our new Guide which covers living there and renting out your investment as a holiday home.