Property investment in Turkey
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Articles on Turkey
Turkey is emerging as one of the strongest locations for property investors, largely due to the fact that from January 2006 it became legal for a foreign national to own a Turkish property in their own right, not to mention the affordability and choice of homes available, a low cost of living, the prospect of good returns on capital and its economy, which is seeing impressive growth despite a turbulent past. The possibility of EU membership has also prompted interest from overseas buyers and has helped to make it a target for retirees, investors and holiday-home owners alike.
Last year, property for sale in Turkey rose in value by around 30 per cent, and in some areas, particularly in the coastal towns along the Aegean and the Mediterranean, by considerably more. Rentals of £300 to £500 per week and more on small apartments through to several thousand on much larger coastal properties were realised. Such figures make buying property in Turkey a strong investment prospect.
The two fastest growing markets are along the coast and in the larger cities. As a popular holiday destination with long stretches of coastline alongside the Aegean and the Mediterranean, where tourism is developing at a rapid pace, the country offers the chance of good rental returns on holiday property or the chance of a good lifestyle for retirees or those looking for a change of residence. In the larger cities, such as Ankara and Istanbul, where the main industry sectors of the country are concentrated, investment in property to rent will, similarly, yield some of the best growth figures and returns.
Turkey is a large and diverse country with not only its coastal regions and cities, but also mountains and valleys, forests and traditional villages. Some areas are not necessarily suitable for investment. The inland regions, for example, can have extremes of climate, which means that most buyers, especially those from the UK, head south to make their investment.
Property hotspots in Turkey are headed by the sophisticated resort of Bodrum, where a typical apartment home in a tourist or expat complex can be found for less than £40,000, although as a favourite with the Turkish elite the area affords many large mansion-style homes with heftier price tags too. Bodrum has its own airport, with many direct flights to and from major European cities that add to its attraction. Journey time from the UK is a little over three hours. It has a host of good restaurants and historic sites, and there are a number of golf courses planned for the surrounding peninsula, which again is a catalyst for attracting investment and promoting capital growth.
Laura Nicoll, director of Iberian International, a company specialising in property in Turkey, as well as Spain, Cyprus and the Greek Islands, considers Bodrum, with its exceptional sun record, to be one of the best investment areas at the present time. "The climate of Bodrum is a striking feature, with the hot season running from April to the end of October; outside these months the weather is still warm with at least eight hours of sunshine a day." She adds that the planned golf courses are already having an impact on the area's property market.
Among the property Iberian International currently has available is the Nergis development of detached villas in the village of Tuzla, near Bogazici on the Bodrum Peninsula. Prices for a typical two-bedroom property with terraces and communal features are around £65,000. By way of comparison, a nearby development at Yalikavak offers 31 villas and 38 apartments with pools, uniformed staff, eateries and children's play areas on a hillside overlooking the Bodrum coastline. With prices from £38,000, they are being marketed through Hollingworth & Associates.
Other notable property markets that are seeing good capital growth and have good rental potential are Kusadasi, a popular resort that attracts families as well as sailing enthusiasts, who regard its marina as one of the best in the area, along with the resorts of Altinkum where a two-bedroom apartment can be found for around £40,000 to £45,000; Kalkan, a growing town with a pretty harbour and many beaches; Alanya, a large Mediterranean holiday destination; and the quieter Cesme.
Inland, buyers flock to the cultural Istanbul, where the choice of property is endless, from ultra-modern city apartments to townhouses in the suburbs, and Ankara, the industrial and commercial capital of the country. Both offer good amenities for residents and holiday visitors and accessibility to flights to and from the UK for friends and family to visit.
Caroline Hollingworth of Hollingworth & Associates cites Cesme as a good investment opportunity. Largely ignored by buyers in recent years, property for sale in Cesme is only now being discovered and, as such, represents a good place to buy at an early stage. Hollingworth & Associates currently has the Mordogan development that stands in the town's sheltered bay overlooking the sea. Comprising around 500 villas and apartments standing in some 40 hectares, it will feature its own marina, with some villas having their own moorings, 24-hour security and numerous sports facilities. Prices currently range from around £24,000 to £134,000.
Tom and Serena Taylor discovered Cesme just over a year ago and immediately fell in love with its location overlooking the Greek Island of Chios, so they and started looking around at property. "We found Cesme, liked it enormously and because it is only a 40-minute or so journey to Izmir airport we knew we could get back to the UK easily. This was an important factor for us. We bought a two-bedroom apartment for about £35,000, which is a little higher than in some other areas but has already gone up in value. We would probably have to pay nearer £60,000 now for a similar property."
The couple found the buying process relatively straightforward, although advise using an English-speaking lawyer at all times. When a property has been chosen, an agreement is made between the buyer and seller, and a reservation fee made. The buyer is entitled to request a copy of the title deeds at this stage, usually through his or her lawyer. A contract is drawn up, and a deposit of, usually, ten per cent of the purchase price is payable on signature by both parties.
The buyer must then seek approval for ownership of a Turkish property, again this is usually done through a lawyer, and once clearance is made the purchase is finalised and all monies, including fees and taxes, are paid. In the case of a new build, it is usual for a small reservation fee to be paid, with a 30 per cent deposit made by a pre-determined date and the remainder on a stage payment basis.
Ease of purchase when coupled with good capital returns, growing tourism, a Mediterranean-style lifestyle, beaches, opportunity for rental income and frequent flights for access, combine to make Turkey an attractive country in which to invest.
Read our other articles about buying and investing in property in Turkey:
as well as our overseas property news stories affecting the property market in Turkey or view our range of property for sale in Turkey.
First published in Homes Overseas Magazine September 2007.
Some information contained within this article may have changed since it was first published. Homes Overseas strongly advises you to seek current legal and financial advise from a qualified professional.
