Let’s talk Turkey – 5 reasons to invest in property

Over 13,000 Britons have already been sold on the delights of owning a second property in Turkey.

The year round Mediterranean climate, blue flag beaches, cultural treasures, direct flights from the UK and cheap property prices make it hard to resist. But for those who are still debating the merits of this European treasure leading agent 1 Casa offers 5 reasons to invest in a Turkish property in 2007:

1. Low property prices

With the nations favourite holiday home destination, Spain, averaging property prices of €245,000 it is no wonder that buyers are looking elsewhere. Current prices in Turkey are on a par with 1998 Spanish prices and when you can buy a 2 bedroom apartment in Altinkum for only £23,500, the price of an average family car, the decision is simple. The market is vibrant with apartments, townhouses and villas available. The demand for new build properties, both from the domestic and overseas market, is ever increasing as Turkey continues to address its housing stock deficit of some 600,000 homes.

As demand increases so too does price. Land values have doubled in the last 2 years and property prices have risen by 25% - 40% in some of the more popular costal regions in the last year alone. There are value for money properties still to be found however in Istanbul, Kusadasi, Altinkum, Akbuk, Bodrum, Bodrum peninsula and Marmaris. Didim, next to the famous resort of Altinkum known as the Golden Sands, is a new area for investment largely due to the luxury harbour under development. Investment in this particular area will bring good long term investment and a solid future in Turkey. Over the next 4 years another large golf course is scheduled making demand for this location high along with strong capital appreciation.

2. Impending EU accession

Turkey reached a milestone in October 2005 when full EU membership talks began. The path has undoubtedly not been smooth but Turkey has adopted EU reforms in an effort to align with its European partners and full accession is expected by 2015.

EU accession however is often a double edged sword for the property investor. On the one hand levels of foreign direct investment increase, budget airlines move in, tax laws are aligned with Europe and new finance products are available. But on the other hand as all these factors facilitate property purchase so the purchase price rises. It would seem that now is the time for the canny investor to switch the focus from the new EU members (Bulgaria, Romania etc…) to Turkey and watch the capital gain as EU accession approaches.

3. Opening of the Vita Park Golf Resort

Situated on the Bodrum peninsula the Vita Park Golf Resort is the biggest golf complex in Turkey. Golf is not a new phenomenon in Turkey (Istanbul Golf Club has been welcoming visitors since 1895) but as foreign investment has poured in so the development of high quality leisure facilities has occurred. Vita Park comprises two 18 hole PGA standard courses covering 5850 metres and offers golfers the charm and challenge of an Old World course with a feel that is reminiscent of traditional Scottish links. The resort also offers a 6 hectare Golf Academy with training facilities, high quality Mediterranean style 2500m2 club house, spa, sports facilities and a stunning setting surrounded by Lake Tuzla home of the native flamingos.

Compared to other golf developments it does not permit private residential properties to be located on the course. Properties are for sale nearby however; for example the Bargylium project offers 4 bedroom, 3 bathroom villas from only £77,313. Land and property prices in this region have risen sharply over the last year as the opening of the resort in early 2007 approaches so now is the time to invest.

4. New mortgages available

Financing a property purchase in Turkey has been, in the past, somewhat challenging requiring cash or bank loans to make a purchase. However with new mortgage legislation now in place a wave of finance products offering fixed interest rate mortgages are now available. This spells good news for overseas buyers, especially those who are first time buyers. These mortgages are also now available to the local population increasing their chances of owning a home however as property ownership increases so too do property prices so investors will have to act quickly to take advantage of the new finance options available and still get a bargain.

5. High rental potential

As well as being an ideal destination for your own holiday home, Turkey also offers a lucrative buy to let opportunity. Tourist levels continue to rise year on year from 21 million in 2005 to 25 million in 2006 and 29 million expected in 2007. This coupled with a large local population (70 million +) and increasing numbers of foreign expatriates (currently 34,000) presents the option of purchasing a property to provide rental income. With the options of an apartment in Istanbul for a long term let or a villa on the coast for holiday lettings, rental incomes of up to £800 per week in peak season can be very useful in covering the cost of the purchase.

So, if you have been thinking of purchasing property as a holiday home, investment or both then these 5 reasons alone should make you seriously consider Turkey. 1 Casa offer a wide variety of properties in Turkey starting from just €35,525. For more information, visit 1casa.com.