Property Market in Turkey
Buying in any country purely for investment always comes with its risks, and Turkey is certainly no exception. There are, however, some factors which may contribute to higher capital growth than other destinations.
The prospect of Turkey joining the European Union is an issue which always arises when discussing Turkish Investment Potential. The truth is that, while turkey has been an official candidate for EU membership since 1999, there is no sign on the immediate horizon of this becoming a reality. That’s not to say that it won’t come to fruition but experts who are willing to put their predictions on the line state that the earliest this is likely to happen is 2015.
People looking to buy a property in Turkey tend to look in three main Areas, Istanbul, the Aegean coast and the Mediterranean coast. South and Southwestern regions of Turkey are blessed with some of the best coastlines in Europe. Trendy western and the traditional Turkish life – styles create a modern fusion. Many Europeans who discovered the beauties and the price vs. quality advantages, have already made their decisions to Turkey. Looking at low property prices but high build quality standards, the property market in Turkey can be compared with the nascent Spanish property market of the 1970’s.
The stability of Turkey’s economy and high growth rates in recent years have attracted significant foreign interest in Turkey’s real estate market. In year 2002 non – Turks invested 6 billion Euro in the Turkish economy (the world’s 17-th largest economy) which is expected to increase to 18 billion Euro in 2008. Average growth rate of the economy since 2002; 7,4%
Turkey is a country with a young society. Half of its citizens are still under the age of 25. The average age of the 72 million nation is 29. According to the statistics, each year 800.000 couples are getting married and begin searching for their own house. It comes therefore as no surprise that the demand for residential real estate is extremely high as a result. The Turkish market needs at least 700.000 new homes yearly. In the next 10 years, residential building development is expected to move to suburbs, which will increase the prices in areas like Antalya, Bodrum and Fethiye further.
As Turkey is approaching full EU membership while having a rapidly growing economy, it attracts large foreign investment. While the house prices are rising, Turkey still remains as the Mediterranean’s bargain spot. Today is the right time to invest in Turkey in order to benefit from massive price increases in the years to come.
The most frequent customers are British, German, Russian, Dutch, Danish and Americans. According to official figures, foreign real estate purchases accounted for 1.34 billion $. Foreign home ownership is still rather low in Turkey, compared to e.g Spain.