Posted on 20 November 2010
According to official data from the Turkish General Directorate of Land Registry, some 32,000 Brits are dominant owners in a country which has seen foreigners purchase over 65 million square meters of land and property since 2002. With 6 million square meters of that owned by Brits, they own twice as much as the second largest owner-group; Germans with 3.5 million square meters.
During the boom, Turkish property was favoured by lifestyle buyers, with investors favouring countries with much more straightforward paths to EU membership, like Bulgaria on the run up to its accession in 2004, then Croatia and Montenegro as they looked like the next country’s to join.
But now, with Turkey one of the fastest growing economies in the world, and almost every indicator positive and likely to stay that way, compared to an EU mired in a sovereign debt crisis, struggling against sluggish growth and many indicators still volatile, Turkey is becoming equally popular with investors. Here are just some of the positive indicators investors find when they dig into the Turkish property investment opportunity.
According to the most recent data available from Turkstat Turkish tourism grew around 7% year on year in September (from 3,989,011 in 2009 to 4,265,936). This is slightly less than the report from the tourism ministry of 11.4% year on year growth in the first half of the year, but still very positive indeed.
Exports grew 5.5% year on year in September, and imports grew 25%.
GDP grew 10.3% year on year in the second quarter, following 11.4% growth in the first quarter.
The unemployment rate fell from 13.4% in August 2009 to 11.4% in August 2009.
This data is just the tip of the iceberg; there is much more to be happy about, not least HSBC including Turkey in its grouping of the world’s fastest growing emerging markets, the CIVETS, Columbia, Indonesia, Vietnam, Egypt, Turkey and South Africa. It is easy to see why Turkey is becoming a hit with property investors.