Istanbul-Turkish Daily News
Turkey, with its stunning scenery and wealth of antiquities, is fast emerging as a new property hot spot. Straddling Europe and Asia, Turkey is blessed with some of the best coastlines in Europe, especially in the country's southwestern corner where the Mediterranean and Aegean seas meet according to the web site, www. businessweek.com.
With Turkey expected to join the European Union within the next decade, property experts say those who get in early stand to see a substantial return on their investment. The combination of rapidly rising house prices and Turkish property market reforms has made the country an increasingly popular destination for international investors. Five years ago the government passed legislation making it possible for non-Turkish citizens to buy property. Since then, foreigners have spent more than $7.2 billion on an estimated 30,000 homes, according to the Turkish government. Over the last year alone, property sales to foreigners soared by 59% to $2.9 billion.
Moreover, recent changes in legislation have also created the country's first ever mortgage market, says the web site. As a result, it is now possible to get a mortgage at interest rates that are roughly 50% less than the traditional home loans buyers used in the past. "Now that the government has made it easier for foreigners to buy, demand is soaring," says Ahmet Rauf Saatci, chief executive of real estate agency Century 21 in Istanbul.
Bright Spots
The sunny Mediterranean climate is only a small part of Turkey's attraction. For starters, property prices are on average 30% to 50% less than those found in more well-trodden hotspots such as the Spanish, French, and Italian coasts. Property experts compare the country to the Spanish property market in the 1970s. London-based international real estate agency Knight Frank predicts property prices will increase by 12.5% in 2007, the web site says.
Not only is it cheaper to buy, it is also much cheaper to live. Economists reckon that the cost of living is between 40% and 60% less than in continental Europe. And according to the Organization for Economic Cooperation and Development, Turkey is the fourth least expensive place to live in a recent survey of 30 member countries.
The vast majority of international buyers are focusing mainly on coastal resort towns. Towns such as Bodrum, Marmaris, and Fethiye, all long-popular with vacationing Turks and Europeans alike, have experienced a development boom. Over the last five years, numerous modern apartment complexes and gated private communities have sprung up to cater to demand.
Good Returns
The web site further says that the Turkish property developer Tuna Homes and Buildings almost exclusively markets its portfolio of modern villas and apartments to Europeans. Since ownership laws for foreigners have been liberalized, interest in investment properties in the Bodrum Peninsula has accelerated, according to Tuna sales manager Necati Azazi. Last year, 90% of Tuna's 500-apartment development in Bodrum, called Peninsula, was sold to Europeans. Over the last year, prices in coastal areas have appreciated between 30% and 50%. New, modern, gated developments with pools and other amenities such as tennis courts are in high demand.
