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The Property Market

By European standards, Turkey is huge – around half as large again as France. When it joins the EU in the next ten years or so, it will in fact become the largest member state – so when it began its application for membership, it witnessed a flurry of foreign investment, particularly from Dubai, which will help boost its already fast-improving infrastructure.

With a steady increase in annual tourism, Turkey is experiencing an unprecedented level of international exposure and this is, in turn is creating more tourist interest and increasing demand for Turkish property. The value of Turkish property is expected to appreciate in beach front areas by as much as 50% initially, with forecasts for the next two to three years reaching 100%.

These promise to be fascinating times: all this increased investment will stimulate the Turkish economy and – given their relatively modest starting point – capital growth rates should fare very well, particularly along the Aegean and Mediterranean coasts, where Brits are most likely to invest.

The area around Aegean Coast and Altinkum – Akbuk-Bodrum  are particularly popular amongst Turkey property investors as the Turkish government is improving the tourism infrastructure in an attempt to make these areas the most popular of Turkey’s top tourist attractions.

Altinkum -Akbuk is seeing enormous investment including the expansion of Izmir ABD airport,Bodrum Airport both open for low coast charter airlines and Scheduled airlines all year round  the building of new 50 Million USD  marina which is the biggest in Turkey was completed in 2009 May and was just recently voted the best marina in Europe.

There is the possibility of 2 golf courses in Altinkum – Akbuk. These areas are the next tourism designated destinations by the Turkish Tourism Ministry with new road networks, hotels and potential the golf courses. As this investment programme is only in its early stages, property prices have not yet reacted. This is certainly an area of great potential to property investors.

The number of Britons owning property in Turkey recently jumped by more than 200 per cent in one 18-month period, and what’s more, it is now possible for foreigners to get a local mortgage, which will further encourage this ripening market. In addition to growing political optimism, buy-to-let investors are relishing a tourism boom: a total of 21 million visitors came to Turkey in 2005, a massive 22-per-cent increase on 2004. The country received more than 26 Million international tourists in 2008 and despite the ongoing financial crisis these numbers are expected to reach around 33 Million by 2012. The lion’s share of those 33 million will be visiting west- and south-coast resorts, which are becoming increasingly famous and fashionable.

Given Turkey’s prospects for the years to come, investment is looking like the sensible thing. And thanks to its size, it won’t run out of coastline for a while yet.

Here are some reasons to make Turkey the hottest investment spot.

  1. Property prices are still lower than equivalent European destinations

  2. Cost of living is 1/3rd of that in the UK

  3. The Aegean coast offers an all round season (350 sunny days a year )for good holiday rental opportunities.

  4. Excellent property investment growth is predicted with holiday operators and airlines increasing capacity.

  5. Low property acquisition and ongoing taxes

  6. Fastest going economies attracting large corporate investments

  7. Rich in cultural history and ancient historical ruins

  8. Excellent road and air networks providing good infrastructure around the country

  9. Turkey has some of Europe’s attractive and stunning beaches making it a very popular holiday destination

  10. Voted 3rd in the A Place in the Sun television programme to buy property (2005) and 4th most popular as a destination by the A Place in the Sun reader (2006) Turkey 2nd most popular country to buy property in the next three years –

  11.  NatWest survey of mortgage lenders, February 2008

  12.  Arrival of low coast Airlines Easy Jet, Sun Express , British Airways,Onur Air serving all year round services.

Living In Turkey

Sunshine, friendly people and a low cost of living make Turkey a hugely desirable place in which to buy a property…

Turkey may border the volatile Middle East, yet it is a stable, secular and democratic country. Its geopolitical position, close to the USSR, made it a key Western ally during the Cold War, and it became a member of NATO in 1952.

The country has continued to be an important friend of the West, although the war in Iraq has put this relationship under strain, particularly as there is widespread popular discontent at events there. Many Turks also feel let down by what they see as European foot – dragging over their country’s application to join the EU. Despite this, the political establishment and military remain pro – Western.

The country is currently run by the Ak Partisi, which enjoys a large majority in parliament – a rare thing in the usually fragmented world of Turkish politics. 
Turkey’s population is 99% is Muslim, but most Turks are far more moderate in their beliefs than their neighbours in Middle East. The west of the country and the main cities such as the capital Ankara, plus Istanbul, Izmir, Adana, Antalya, Bursa, are the most developed areas, where industry and commercial activity are concentrated. This is also where the tourists industry and foreign property market are currently concentrated.

The crime rate in Turkey is very low compared to Britain and other Western European countries. Violent crime is particularly very rare, Burglary and car crime also less common and almost entirely confined to the larger cities and towns.

Health Care and Education

Turkey has a three-tier health system with state hospitals and health centres, hospitals funded by the equivalent of National Insurance, and privately run clinics and hospitals. In general, the quality of care and equipment is best in the private sector, and easily on a par with, if not better than in Britain.

Private hospitals in resorts areas and the main cities will generally have some English speaking staff; though don’t count on this elsewhere. You will be expected to pay for any treatment at the time and then reclaim the cost later if you have health insurance.
Foreign residents can arrange private health insurance through a Turkish Bank or insurance company.

Turkey’s education system is based on the French model, and has both government – run and private schools. Children of foreign residents are entitled to go to state schools, which tend to have larger classes and fewer facilities than their equivalent in Britain.
Private schools, found in the most cities and large towns are better resourced, though standards of tuition may not be high as the best state schools – known as Anadolu Lisesi…

Currency and Banking 

A new currency, the new Turkish Lira, was introduced at the beginning of 2005 to replace the Turkish lira, whose valued had been eroded by years of rampant inflation. The old coins and notes were legal tender until the end of 2005.

There is a large choice of high street banks in Turkey, offering standard banking services to foreign nationals living in the country. You will need a residency permit to open an account, but you can cash travellers’ cheques and withdraw cash from ATMs using British credit cards, as well as some debit cards. Making international transfers to and from Turkish bank accounts takes at least 10 working days, and often considerably longer. 

The mortgage system in Turkey is still at a very early stage of development and loans are not available to foreigners, although this may change in the near future.

Cost of Living 

Foreign visitors with hard currency enjoy a high purchasing power, with the cost of living far below European levels, even in the relatively expensive coastal resorts. For example, the cost of a mineral water is about 50p, while a beer in a bar costs around £1. Dinner with local wine in a restaurant in a tourists are a typically costs about £12 per head – although you can eat for a fraction of that elsewhere. 

Modern supermarkets are now commonplace, but shopping for locally grown fruit and vegetables in a market is extremely cheap, as well as being fun.
Local produce is of very high quality and available on a seasonal basis, with some imported items available in the largest supermarkets. The selection includes temperate species such as apples, pears, plums and cherries, in addition to more.

Meat is central to the Turkish diet and is extremely tasty. As well as the ubiquitous doner, there are a large number of other kebab varieties and grilled meat dishes to try. 
 
Cost Of Living

Bread

Kg 50p

Natural Gas

Per m3 10p

Macaroni

Pack 50p

Rent

Month £200

Veal

Kg £4.50

Daily Hotel Rate

Per person £15

Milk

Lt 50p

Electricity

Per kw 5p

Eggs

5p

City Bus Fare

One way 30p

Butter

Kg £1.20

   

Mineral Water

74c £1.50

   

Wine

75cl £2.30

   

Meal Out

Per head £12.00