Turkey is a 'Prime Destination' for Investment
Turkey has been described as a "prime" destination for property investment. Turkey's infrastructure has evolved to provide foreign buyers with the support and access necessary for development opportunities to become attractive. The Turkish government is focusing on developing the country's tourist industry to reach 15% of its Gross Domestic Product by the year 2020.
Turkey’s infrastructure has made this destination more accessible, with new roads and enlarged airports being built and existing road and air routes being expanded and has made property in Turkey more popular. This popularity is now evident in Istanbul where home prices have been increasing steadily for a number of months.
These rises have been underpinned by high tourist numbers and a stable economy, as well as efforts to keep inflation in check.
Turkey’s foreign minister has recommended his top choices for investment hotspots in accordance with Turkey’s Tourist Development Regions, these areas include Cesme, Dalaman, Didim, Antalya, Manavgat and Oymapinar.
With Turkey experiencing unparalleled publicity for its rapidly growing tourism industry, this has helped and continues to fuel the massive demand in property sales. This is set to continue with Turkey rapidly becoming a dominant competitor in the international tourism market.
The area around Altinkum is particularly popular amongst Turkey property investors as the Turkish government is improving the tourism infrastructure in an attempt to make this area one of Turkey’s top tourist attractions. This investment includes the expansion of Bodrum airport and the completion of one of the biggest marinas in Turkey and the areas first two 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.
Avoid Capital Gains Tax
Turkey also offers some tax incentives that are of high interest to property investors, such as its regulations regarding capital gains tax. If you sell your property after four years, there is no capital gains tax. Property that is sold before the period is over will be charged at the standard rate of income tax (between 15% and 35%), calculated on the difference between the buying and selling price.
European Union Application
On October 3rd 2005, Turkey started the long road to joining the European Union.
Predicted by the end of 2015, according to the European commission’s agriculture report that deals with farming, Turkey is assumed to be an EU member state in eight years time, adding that its agricultural produce equates to that of the last ten nations that entered the union before Romania and Bulgaria.
Because the road to EU membership is going to take time, means there is another few years before property prices raise substantially. Prior to EU membership, there are many factors yet to be discussed and many of Turkey’s issues that need to be corrected before incorporation will be seriously considered. However Turkey has some strong backers for its entry and when it does get accepted into the EU, it is reasonable to expect the price of property to rise greatly in line with a huge surge in tourism.
Serious Investors look for key indicators when investing in property worldwide and just one of those indicators is the European Union. They are looking for indicators that will increase steady growth. Joining the EU in the future is a major step to financial security in the countries property market.
The Economic factors that make ‘Investing in Turkey’ worthwhile
Property prices are still lower than equivalent European hot spots.
Cost of living is 1/3rd of that in the UK.
The process for incorporation of Turkey into the EU has started.
The Aegean coast offers about 9mths season for good holiday rental opportunities.
Excellent property investment growth is predicted with holiday operators and airlines increasing capacity.
Low property acquisition and ongoing taxes.
Fastest going economies attracting large corporate investments.
Rich in cultural history and ancient historical ruins.
Excellent road and air networks providing good infrastructure around the country.
Turkey has some of Europe’s attractive and stunning beaches making it a very popular holiday destination.
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 Janurary 17th 2012. There appears to be no stopping the growth of Turkey as an investment location as we enter 2012. Turkey provides an excellent alternative for investors willing to step outside the tranditional comfort zones of Spain and Cyprus and explore a market that still has some way to catch up with prices in Western Europe
House prices per SQM in Europe
Czech Rep. €3,890
Slovak Rep. €1,292
Turkey €1,202 Altinkumproperty Approx £ 500 Sqm 625 Euro