Posted on 16 February 2009
The credit crunch has made Turkey property an even more attractive option for overseas property investors and holiday home buyers. This month Property Wire reported that the drop in price of Turkey property has made the country — especially Istanbul — a growingly popular choice.
The irony is: that Turkey’s growing popularity because of the credit-crunch’s effect, could actually result in its effect being felt for a shorter time than it otherwise would have.
Turkey property became very popular with overseas property investors during the boom, because tourism to the country went through the roof; hitting 23 million in 2008.
Turkey’s tourism figures continue to rise, and are expected to hit 30million in 2009. Therefore the credit-crunch putting a dent in the prices of Turkey property combined with the fact that tourism continues to grow, makes the growing popularity of properties in Turkey a fairly inevitable outcome.
Less inevitable is the fact that this rising popularity of Turkey property in conjunction with continued growth in the tourism industry could make Turkey’s property market one of the first to see any real recovery.
Turkey property growth has always been primarily fuelled by the growing number of tourists the country receives. It was the drop in sales that caused prices to fall, but not everywhere or every property in Turkey has dropped in price, the drop in sales was caused by panic over the credit-crunch, not because of over-inflated prices; Turkey has therefore not been directly affected by the credit-crunch.
This panic is already starting to wear off; with reports of buyer activity increasing in the UK and other countries. At the same time, the stock-markets and banking system is in turmoil, and the rental yields offered by property in Turkey make it one of the most attractive investment products in the current climate, meaning that even if it does take a while for buyer volume to begin pushing up prices, Turkey property is still a very rewarding investment.