Low to Mid Budget Buying Demand Signifies Great News for Overseas Turkey Real Estate Investors
04 October 2010
There is know doubt that Turkey is in great fiscal condition, with gross domestic product rising 10.3 per cent year-on-year over the second quarter of 2010 and the nation having a budget surplus of $5.1 billion in May this year.
Whilst foreign investment in the Turkish real estate market, was not as badly affected as many around the world last year because affluent lifestyle buyers had kept the majority of the Turkish real estate market alive, it is the resurgence among the low to mid budget sector that is driving the market in 2010 and beyond.
With average per square metre prices in high-end districts of Istanbul standing at €2,386, low property prices, zero capital gains taxes on properties held more than five years in Turkey and the low cost of living are certain to cement Turkey as a favourite with this buyer group during the coming years.
Recent reports in Turkey have also highlighted that the country’s real estate market is benefiting from the severe lack of any competition in the low to mid-range markets. With Greece, Italy, Spain and Portugal all tangled in the debt quagmire, the fiscal stability and rapid economic growth of Turkey are making it a favourite 2011.
Other significant causes for the improvement of Turkey’s economic growth and a robust housing market are the strong commitment by the Turkish government to improving the business environment and the introduction of a number of private initiatives aimed at improving real estate investment data.
Since the financial reforms in 2002 and tight budgetary control implemented by the Justice and Development Party (AK), Turkey has experienced low inflation and falling interest rates, which combined with a recent mortgage laws, are expanding the ability to borrow for housing.
Recent data released from the Turkish General Directorate of Land Registry, identifies that 32,000 Britons now own property in the country. This is no surprise when looking at the investment made into Turkish airports, roads, golf courses, marinas, and the possibility of Turkey joining the EU.
The steady and growing economy, no restrictions on foreign ownership and finance now available all signs point to prosperity in a country that offers some incredible opportunities.
One region on the Mediterranean coast of Turkey that has risen in the past 12 months by around 12-30% is the suburb of Fethiye. Fethiye Real Estate appeals to many Turks and Brits, particularly retirees, and properties remain generally cheap, despite recent capital growth.
Property in Fethiye offers buyers fantastic opportunities for rental income, with an average two-bedroom apartment purchased at around £55,000 producing approximately £350 per week in the high season.