Multi-currency trading conditions in Turkey continue to make the country more attractive to foreign property-buyers than Eurozone destinations, following renewed uncertainty in Europe’s single currency bloc.
A rising economic power, Turkey embraces a culture where trading in different currencies is the norm, while its own currency, the Turkish lira, remains a stable emerging-market currency used for everyday transactions.
“We’re seeing how the situation in Cyprus has once again caused wobbles in the entire Eurozone,” said Julian Walker at Spot Blue. “And again, British buyers are getting niggling concerns about owning an immovable asset valued in euros. Meanwhile, British vendors desperate to get the most from any proceeds they repatriate back to the UK from a Eurozone country are seeing their assets devalue as the euro depreciates and buyers run scared.”
In Turkey, it’s quite typical to see property advertised and sold in euros, Sterling, Turkish lira and, if you’re in Istanbul, dollars. “More and more, Turkey is becoming an international marketplace attracting investors and buyers from around the world,” said Julian Walker. “The fact that a buyer and vendor can more easily agree a deal in one currency that suits them, is helping this trend.”
A common scenario in Turkey is a British person converting Sterling into euros to buy a Turkish property, because the vendor wants euros and Sterling happens to be strong,” adds Julian Walker. “Then, once resident in Turkey the new owner will convert a large amount of their Sterling into Turkish lira and deposit it in a local bank to benefit from the high interest rates paid on lira savings – which helps them meet their day-to-day living costs, which are in lira. In short, in Turkey it’s easier to be savvy with your money, and not be tied to one currency and exposed to one exchange rate.”