Posted on 14 November 2009
The future is bright for Turkish property, according to the consensus of opinion. It is hard to find a report that forecasts anything but continually increasing demand for holiday lets as tourism rises, and solid capital growth in the next few years.
A recent article in Country Life, one of the UK’s longest standing and much loved property magazines – it focuses on the higher end of the world’s markets. The article, titled: Turkey: the New Property Hotspot contained several positive forecasts on the Turkish property market, including one from our own, very cautious Julian Walker.
“There are plenty of other buyers apart from the British in the market, which suggests prices in Turkey will remain stable. It wasn’t drawn into mass development on such a large scale as other developing countries. The Turks are proper market traders-we could probably learn a thing or two from them,” he said.
Julian also told Country Life that people are tending to buy bigger properties at the moment, which has increased the average sale price, and that people are currently achieving yields of between 6% and 10% on their Turkish properties.
“It’s not unreasonable, to expect a rental yield of between 6% and 10% a year from your apartment or villa in Turkey. A detached two-bedroom villa with a pool in an exclusive part of the country rents out from £600 per week, half as much as an average villa in the South of France, although rooms, balconies, gardens and pools all tend to be bigger,” he said.
The article also quoted Hurriyet daily news, which is forecasting a property boom in 2010, Deutsche Bank forecasting a growth of between 5% and 6% consistently over the next 10-15 years, and Nick Barnes, an independent property research analyst who believes that Altinkum, Belek and the less developed areas around Bodrum and Didim will be the focus of growth for the next few years. The Financial Times recently voting Turkey in the top 10 investments for 2009 was also mentioned.
In my opinion — as the anonymous author of this blog — Turkey property is going to increase massively in popularity with buyers from around the world in the coming years. This is because tourism is going to continue growing exponentially, because the vast country has something for everyone. Tourism growth means rental yield growth, and after the crunch rental income is the first consideration on almost every property investment currently being made.
The Turkish Lira is currently the only currency continuing to show weakness against Sterling, and there is a definite advantage to buying now, while demand is fairly low, which is keeping price growth subdued, and while the weakness of the Lira is adding value for money.
All that is before we even mention EU membership, which does seem to be moving forward at last. Of course it may become essential as resources become more and more scarce, to improve relations with the Middle East’s pariah’s using Turkey as go-between.
View Turkey property for sale on the main Spot Blue site.