Turkey’s residential property market comes up trumps

Posted on: November 14, 2008

Written by Select Property

In the recent economic crisis, it’s a real challenge to identify good property investments. After more than a decade of price appreciation, most property markets suffer from oversupply, high prices and the effect of rising interest rates. However, Turkey is on the up….

Residential prices in Turkey rose after relaxation of foreign ownership restrictions in 2005. Buyers (mainly Britons, Germans and Greeks) poured $10.4 billion into the property market in 2002 to 2007 and prices increased at 7% annually over the past five years.

So why the boom?

Turkey experienced a 10% increase on 2007 tourists, totalling a staggering 27 million in 2008. Turkey has developed world class resorts that are popular with Europeans. As a result, demand for short-term accommodation in popular resorts such as Marmaris, Dalyan, Altinkum, Bodrum, Belek and Alanya has jumped.

Another factor driving this boom is access – Citizens of most EU countries, the US, Canada and some countries in Asia, Latin America and Africa can freely purchase properties in Turkey. The cost of living is a fraction of that in most developed countries, serious crime is low and its strategic location means it’s within close flying distance of most European and Middle Eastern countries.

Turkey Property News