Bodrum, Turkey highlighted for investment potential
Amongst the various positive predictions regarding Turkey’s investment potential by property experts, numerous hot spots have emerged where interest seems to be concentrated. For a long time industry professionals have suggested that Turkey’s financial centre is Istanbul. The city has experienced short supply and an increasing demand provoked by Turkey’s economic growth has caused rapid growth. However it seems that Bodrum is highly regarded by investors due to the scope for larger gains offered by the region, lower entry level prices, and more secure growth.
Unlike the speculative price increases witnessed in city locations, the growth in the coastal region of Bodrum has been based solely on a booming tourism industry. Turkey’s tourism levels have increased notably in recent years due to a combination of factors such as a low cost of living, year round sunshine, beautiful resorts and a short flight time as well as a rich heritage. The Co-operative travel group found that their bookings for Turkey had risen 23.4% and fallen 11.6% in other Mediterranean equivalents.
One industry expert summarised the effect this was having on property “The more tourists come, the greater the number of those who want to own a home here. Turkey has phenomenal summer weather, many Turks speak English and with prices an absolute bargain compared with many other resort locations around Europe, there has been a positive upsurge of buyers.”
Turkey’s increase in tourism has been most prominent in coastal areas such as the nation’s leading coastal location, Bodrum. The high level of tourism here combined with the country’s general property price growth is producing excellent returns for Bodrum’s investors.
As well as strong price growth, Bodrum offers excellent rental yields. The holiday-let market attracts premium rental prices opposed to the normal lets that occupy inland and city locations. These higher yields are often offset by a limited holiday season; however Turkey enjoys a year round climate with tourists visiting through-out the year.
Bodrum also offers a much lower cost of living meaning holidays there are more attractive than other areas and more importantly, investment entry levels are lower. This leaves a much greater scope for gains from price growth ultimately providing higher returns on investment.