Posted on 14 February 2011
Is Property in Turkey Still Popular?
It’s hard to know when one nation’s property market has fallen out of favour these days as the global financial crisis envelopes country after country and apparently leaves no nation’s economy untarnished. So is property in Turkey still popular or has the market boomed and gone bust?
This question is being asked by Brits, Russians, Germans and other Europeans who were well aware that Turkey’s appeal was rising fast, but who are now confused about where the future prospects for the country’s economic forecasts lie.
Well, if you listen to the economic experts then Turkey is still a sound bet, if you listen to the real estate analysts then Turkish property is still a viable investment, and if you follow the path of the high end real estate developers and designers, you can see that actually yes, Turkey’s is still an incredibly exciting market to consider. In this article we look at why property in Turkey is still popular, and where some of the best pockets of property are for sale.
According to real estate researchers Liam Bailey and Nicolas Barnes from Knight Frank, writing in the Financial Times, Turkey’s established and higher end markets are both worthy of serious buyer and investor consideration in 2009. They point out in an article all about where to invest in property in 2009 that whilst prices have surged ahead and are now falling back in most property markets around the world, if you look carefully at fundamentals such as a property market’s infrastructure, accessibility, amenities and prospects for economic growth and find that everything is in a particular country’s favour – 2009 could be the best time to chance your arm and buy in as prices fall fast and vendors display signs of desperation!
The logic behind their thinking is spot on – after all, despite what some countries’ economies are doing, the fundamental facts of supply and demand remain. In Turkey this is true, there is increasing demand for accommodation in the likes of Istanbul for example, and because Turkey is outside the eurozone, it is forecast to benefit from an increase in tourism traffic this year which puts pressure on the amount of accommodation stock available to let. So, a market like Istanbul’s is in favour – and then when you look at the prospects for other pockets of the country, you again find places where an investment today could reap significant dividends for the future.
Take a place like Bodrum or Belek where there is massive investment being ploughed into accessibility, core infrastructure, tourism amenities and the general appeal of the resort. This sort of investment forces the value of real estate up – even in a falling market! The resorts become more desirable as places to live or holiday, this increases demand for residential and rental property, this increase in demand may be slow now thanks to the state of the global economy, but it will come – and investors can bank on this. Added to all this you have the undeniable fact that in many of Turkey’s hottest resorts such as those already mentioned, there is strong local demand for second homes – so this makes the established and second hand market very valuable too. Resident buyers often go for well-maintained homes that are completed, have a traceable history and are in an established area. This places additional value on these types of homes for investors.
Shelter Offshore 14 January 2009 (Abridged)