Property Sale Overseas: Turkish Home Buying and Property News
New Homes For Sale In Turkey - 16 September 2009
Property Sale Overseas are pleased to announce several new property developments available in the Antalya / Analya region of Turkey.
Ideal for both those looking for a holiday home in Turkey or those wanting to invest in turkish property, properties on offer include Villa, Duplex and Apartments.
more information
Turkey is 'prime' destination for investment, Nirvana International, UK - 7 Jun 2007
Turkey has been described as a "prime" destination for property investment in a leading foreign property publication.
According to the magazine, Turkey's infrastructure has evolved to provide foreign buyers with the support and access necessary for development opportunities to become attractive.
Speaking to World of Property, Paul Benedek of Solaris Villas said investors could expect good returns as well as Turkey's culture and charm.
"Turkey has really emerged as a prime property market over the past decade," he said.
The Turkish government has focused on developing the country's tourist industry in recent years, which is visible in the improvements it now enjoys, as Mr Benedek described.
"This infrastructure has made Turkey 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 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.
Mr Benedek recommended his top choices for investment as Cesme, Dalaman, Didim, North Antalya, Managvat and Oymapinar.
These are all areas located in Turkey's Tourist Development Regions.
Turkey: Mortgage Law Will Accelerate The Flow Of Foreign Capital ..., Mondaq News Alerts (subcription), UK - 5 Jun 2007
The new mortgage law in Turkey sets new standards for the housing finance system and introduces new capital market instruments.
The lack in Turkey of a proper housing finance system, and the consequential high occurrence of irregular and unqualified housing in the country has forced the Turkish government to take action. For that purpose, the Law Amending the Laws Related to Housing Finance ("Mortgage Law") has been prepared and adopted by the Turkish Parliament. The Mortgage Law's aim is to improve the infrastructure in the field of property finance. It will do this by promoting a primary mortgage market, creating a secondary mortgage market - by introducing legislation regulating the trade of domestic mortgage-backed securities - and providing alternative funding mechanisms to primary lenders. These steps will necessarily improve building standards as only qualified housing will be eligible for such financial backing.
Only Authorised Properties
It is estimated that more than 50% of residential property in Turkey lacks proper licensing as a result of unqualified urban planning and illegal urbanization. This substantially diminishes the portfolio of eligible assets available for securitisation. The Mortgage Law explicitly provides that only housing finance loans for property having occupancy permits qualify as eligible receivables for a fund pool.
Although there exists no restriction in the scope of the law in relation to the type of the property, an overview of the Mortgage Law clearly demonstrates that only "authorized" properties may be subject to mortgage-backed housing finance.
Finance Leases for Housing Finance
Under the Mortgage Law, "housing finance" is defined as the extension of loans to consumers: (i) to acquire houses; (ii) for the leasing of houses to consumers through finance leases; and (iii) for the extension of loans to consumers where such loans are secured by the houses that the consumer owns. In addition loans extended for refinancing the above-mentioned loans are included in the scope of housing finance. There are two key methods of providing housing finance under the Mortgage Law:
Loan Extension
The housing loans offered by Turkish banks have already been used by many consumers, and the number of people using such loans is increasing rapidly.
Until now, Turkish people have largely had to rely on inter-family borrowing or expensive short-term unsecured loans from banks. The extension of housing loans, as the primary method of financing housing requirements, will be the most significant change of the new system. It should be noted that the Mortgage Law applies to loans granted by Turkish banks also prior to the Mortgage Law which are therefore also affected by the changes.
Finance Leasing
After the adoption of the Mortgage Law, it is likely that finance lease agreements will play a major part in the housing finance system. For this reason, the Mortgage Law introduces new provisions for finance lease agreements entered into with the aim of financing housing needs.
New Players in the Housing Market
Under the Mortgage Law, housing and mortgage finance institutions were introduced as new capital market institutions.
Housing finance institutions will operate as liquidity providers in the primary mortgage market by financing the purchase of eligible real property. Banks, financial lease companies and consumer finance companies will be qualified to operate as housing finance institutions.
In addition, secondary market institutions are defined as "Mortgage Finance Corporations". These corporations will be able to buy home loans from housing finance institutions, hold them in their portfolio, sell them, issue bonds secured by the housing loans (and the mortgages) and also securitise these loans through housing finance funds.
Housing Finance and Asset Finance Funds
"Housing finance funds" are defined under Article 12 of the Mortgage Law as: "the providers of securitisation of receivables arising from housing finance through mortgage-backed securities." The aim is to provide easier methods for third parties to purchase and sell those securities which give participation rights in the fund portfolio. Accordingly, housing finance funds will contribute by providing liquidity and ultimately reduce the end cost of funds provided for mortgage finance.
"Asset finance funds" issuing asset backed securities are also regulated under the Mortgage Law. They are authorised to securitise receivables arising from sources other than through the housing finance "special purpose vehicle" structure.
Mortgage-backed Securitisation
The Mortgage Law introduces legislation that will govern domestic mortgage-backed securitisations and the Capital Markets Board is expected to issue secondary legislation regarding mortgage covered bonds in the near future.
From the banks’ point of view, the new Mortgage Law will allow for new funding mechanisms, such as asset-backed securitisations and covered bond issues, which are currently uncommon in Turkey.
New Production and Development Opportunities
It is true that neither consumers, nor experts are entirely satisfied with the measures introduced by the Mortgage Law, but such efforts can be seen as the first steps in improving the system. The Mortgage Law has been hailed as the "saviour" of the housing sector, and many believe that it will improve the economy by providing new production and development opportunities, ensuring substantial tax revenues and increasing employment in many sectors of the economy. It will also accelerate the flow of foreign capital into Turkey, a process which the Turkish government is already encouraging by providing other incentives to foreign investors.
It is therefore without question that the scheme for housing finance and mortgages created by the Mortgage Law will rapidly become part of daily life, and create significant opportunities for multi-national corporates/investors seeking new investment opportunities.
Access boosted for Scottish investors in
Turkish property, 03.05.2007
People living in Aberdeen who are interested in a Turkish property
investment or simply fancy a holiday in the country will be able to
take advantage of increased access there, according to reports.
This will be the first time that direct flights have been laid on
from Aberdeen to Turkey, according to BBC News.
Services will begin on June 4th, when tour operator ScotTravel will
commence twice-weekly flights to Dalaman.
A spokesman for Aberdeen Airport said: "This is the first time
passengers will be able to fly from Aberdeen to Turkey and that is
fantastic news."
Potential Turkish property investors may also be able to access a
wider range of regions in the future, as the service could be
expanded to additional destinations if it proves popular.
Scottish travellers and investors are currently able to fly to
Dalaman and Bodrum from Edinburgh Airport.
Turkish property ''to benefit'' from change in
law
The Turkish property market is set to receive a boost in investment
following a change in the law governing the industry, it has been
claimed.
Real estate company Rightmove points out that Turkey has been a
favourite among UK holidaymakers for years but has only recently
come to the attention of overseas property investors.
According to Justin Figgins of Rightmove, this is due to a
legislation change that has made investment in Turkish property a
more achievable prospect for Britons.
"Though well known as a fantastic but low cost holiday destination,
Turkey is now set to become one of the next big things in overseas
property thanks to a change in Turkish law," Mr Figgins said.
"This change means that foreigners can now obtain Turkish mortgages,
which will inevitably lead to an influx of investors to the Turkish
coastal resorts where the real bargains are."
Prior to the adjustment in the law, the only foreigners able to
purchase property in Turkey were cash buyers, but such transactions
became increasingly rare as prices increased, prompting the change
in regulations
EU agrees to resume accession talks with Turkey
The EU has agreed to continue negotiations with Turkey on its
planned accession to the EU.
EU officials confirmed that the country could restart negotiations
on the enterprise and industrial policy chapter of its bid to join
the EU. Talks had ground to a halt following the trade dispute
Turkey was involved in with Greek Cyprus.
If it is successful in joining the EU, the Turkish property market
will see a substantial benefit in the form of increased economic
stability.
Tourism will also receive a boost as EU citizens are allowed to
travel freely to other countries included in the union.
Turkish Daily News quotes state minister Ali Babacan as saying: "The
official opening of the chapter will be an important indicator that
Turkey''s EU process is on track and that the official process of
[accession negotiations] has restarted in an appropriate way."
One of the main arguments offered for Turkey to be admitted to the
EU is the strength of its economy, which is currently in a period of
modernisation and growth.
Turkey in top 5 countries for foreign real
estate investment Today's, Zaman, Turkey - 2 May 2007
Research carried out by the British real estate investment firm
Assetz pointed to Poland as being the number one country these days
attracting foreign investors. The research, which was also published
in the Sunday Times, then listed Turkey, England, Bulgaria and
France after Poland, as the next four on the list. According to the
research, the profit based on money invested in these countries in
real estate is 64 percent in England, 54 percent in Bulgaria, 51
percent in France, and 45 percent in Turkey. Meanwhile the Assetz
research also noted that an estimated 400,000 British citizens now
own property outside of Britain. A full 56 percent of these
investments, which are estimated at around 52 billion pounds ($103
billion), are in Spain and France.
Foreigners will continue buying from Turkey for
the next 10 years, Today's Zaman, Turkey - 2 May 2007
One of the arenas to be hardest hit by the 2001 economic crisis in
Turkey, the real estate market, is bouncing back with speed, as it
experiences a series of economic developments.
Last month’s bidding for General Directorate of Highways (KGM) and
İstanbul Transportation Authority (İETT) plots are just one example
of renewed energy in real estate. The Zorlu Group bought the KGM
property for $800 million, while the Dubai-based Sama Dubai company,
owned by Dubai Sheik Maktoum, bought the Levent İETT garage property
for $705 million. In the wake of these significant purchases, there
is curiosity on the market as to whether or not this type of sale
will continue.
Cansel Turgut Yazıcı, general manager of the Real Estate Evaluation
Department at Turkey Industrial Development Bank (TSKB), says that
the most important reason for these recent developments in Turkey’s
real estate market is the general state of economic stability.
Yazıcı said: “At this moment, the future of real estate in Turkey
looks very bright. These sorts of open bidding sales should
continue. Economic development and stability are pulling real estate
investors into Turkey. Good years lie ahead for our country’s real
estate market, and those who are aware of this are on the right
track. … If we compare the general situation to a train, those who
are buying property are getting on board the train and going, but
those who don’t will be very sorry in the future that they missed
the train.”
Foreigners investing in İstanbul real estate are generally
purchasing shopping centers, offices, and luxurious housing. At the
forefront of foreign companies investing in Turkish real estate are
British, German and Arab companies. Yazıcı also noted that the
relatively cheap price of Turkish real estate in comparison with
other developing countries is another reason for its favored status
among foreign investors. She said: “The Spanish are looking at
property near city centers in the south. Arabs tend to look for
places to build apartment buildings and shopping centers. European
investors are interested in shopping centers, apartments and office
space. With the current economic situation continuing in a positive
manner, we will see foreign property purchases continue in Turkey
for another 10 years.”
She underlined the advantages inherent in having foreign investors
buying into Turkish real estate, noting that foreigners also bring
an increase in employment opportunities with them when they buy
property. “Foreign companies do not work on their own these days;
when they come to Turkey they work with Turkish companies on their
investments. They work out contracts with Turkish companies during
their investments. Or you might have a situation where the company
is itself Turkish, but the financial backing is from abroad.
Foreigners are busy building shopping centers and office buildings.
At some of these office buildings, there might be jobs opened for
between 2,000 and 2,500 people, and all of the employees will be
Turkish.”
Yazıcı also touched on the fact that since 2001 there has been a 100
percent increase in the number of companies investing in the Turkish
real estate market. “In 2003 our company was working with two
foreign companies. This has now gone up to 25 companies. In the past
six months the number of foreign companies on the Turkish real
estate market has continued to increase. These are investors who are
putting very large amounts of money into the market. For example,
there are investments made by foreign firms that reach the level of
several billion dollars.”
Talking about the shopping centers and luxury housing projects
currently being invested in by foreign companies, Yazıcı noted that
over the next few years these large-scale investments will start to
spread outside of İstanbul. Within this framework, Yazıcı asserted
that very soon there will be foreign-backed shopping center projects
under way in Eskişehir, Denizli, Kayseri, Mersin, Diyarbakır,
Gaziantep, Samsun, Adana and Trabzon. She said: “Investors
interested in building housing are looking into Kuşadası, Didim, and
Fethiye -- all tourist regions. Then there is also the office
building market. Foreign investors are looking at İstanbul for this
type of investment. There are foreign companies interested in all
three of these sectors -- shopping centers, housing, and office
space -- that are active in Turkey right now. There are Turkish
managers involved in some of these projects, but the bulk of the
people involved in many of these projects are foreigners.”
Yazıcı noted that it is “completely normal” that the prices of
housing around the recently sold İETT property in Levent would climb
after the highly publicized sale. “The Dubai Tower project is a
great one. On the real estate market there is a saying: The value of
property near good property goes up, and near bad property goes
down. And if we apply this to the Dubai project, it is only natural
that the value of the buildings near the coming Dubai Towers would
also rise.”
She also asserted that the infrastructure of the Turkish real estate
market is in place now, and that as a result, foreign companies
investing here now work with Turkish service, project, development,
and financial backing companies to bring about their investments.
Britons tempted by Turkey's booming property market, Posted on Monday, April 30 @ 00:14:11, Voices Newspaper
THE boom in the
Turkish real estate market is being closely followed by European
investors, the British in particular.
Rod Thomas, managing director of Axis Property International, which
provides projects and counseling services to over 15,000 real estate
investors -- making it Britain’s largest enterprise of its kind,
said the real estate market in Turkey excites European realtors.
“Owing to the exorbitantly high prices in Spain, the real estate
market there has come to a halt. Therefore Turkey stands before
European real estate investors as the most attractive and
interesting choice,” he added.
Mr Thomas, who attended the Property Fair in Antalya, a first-time
event in Turkey for the real estate sector, gave his assessment of
foreigners’ interest in the Turkish real estate market.
Stating that Turkey’s great potential would be realized in the
coming years, particularly with the passage of the mortgage law,
Thomas added: “There will be important developments in the real
estate market in Turkey in the next five years.
“In particular large places like İstanbul will be teeming with
foreign investors. As of now about 1,500 British investors are
expecting projects from us related to Turkey.
“ This figure may well double once we present the research we have
been conducting on Turkey to the investors.”
Even just the word
mortgage sufficed to attract the attention of investors from abroad,
Mr Thomas said.
He added: “The chief motive behind the interest of foreigners in
Turkey is the passage of the mortgage law. Seeing the opportunities
here we decided in January to enter the market.
“With the implementation of the system, Turks’ home-purchasing power
will increase, which in turn might trigger an upsurge in house
prices. ” He further noted that it was just the right time to invest
in real estate in Turkey.
Britons keen to enter Turkish property market,
26th April, Todays Zaman
The boom in the Turkish real estate market is being closely followed
by European investors, the British in particular.
Rod Thomas, managing director of Axis Property International, which
provides projects and counselling services to over 15,000 real
estate investors -- making it Britain’s largest enterprise of its
kind, said the real estate market in Turkey excites European
realtors. “Owing to the exorbitantly high prices in Spain, the real
estate market there has come to a halt. Therefore Turkey stands
before European real estate investors as the most attractive and
interesting choice,” he added.
Thomas, who attended the Property Fair in Antalya, a first-time
event in Turkey for the real estate sector, recently spoke to
Today’s Zaman giving his assessment of foreigners’ interest in the
Turkish real estate market. Stating that Turkey’s great potential
would be realized in the coming years, particularly with the passage
of the mortgage law, Thomas added: “There will be important
developments in the real estate market in Turkey in the next five
years. In particular large places like İstanbul will be teeming with
foreign investors. As of now about 1,500 British investors are
expecting projects from us related to Turkey. This figure may well
double once we present the research we have been conducting on
Turkey to the investors.”
Even just the word mortgage sufficed to attract the attention of
investors from abroad, Thomas stated, and continued: “The chief
motive behind the interest of foreigners in Turkey is the passage of
the mortgage law. Seeing the opportunities here we decided in
January to enter the market. With the implementation of the system,
Turks’ home-purchasing power will increase, which in turn might
trigger an upsurge in house prices. ” He further noted that it was
just the right time to invest in real estate in Turkey.
Turkish mortgages open up overseas investor market , Wednesday, 18 Apr 2007 09:18
Buying property in
Turkey is set to be the one of the next big things thanks to the
introduction of mortgages for non-residents, an online estate agent
says.
Rightmove Overseas predicts property in Turkey will become more
popular due to the change in Turkish law, seeing an influx of
foreigners buying homes on the Turkish coast.
Known for its friendly people, good food and beautiful coastline,
Turkey has been a top low-cost holiday destination for Brits for
years.
Overseas property buyers were unable to purchase a Turkish property
unless they paid cash, but with inflation pushing house prices up
the government was forced to change the law to keep the housing
market going.
"Though well known as a fantastic but low-cost holiday destination,
Turkey is now set to become one of the next big things in overseas
property thanks to a change in Turkish law," said Justin Figgins,
head of RightmoveOverseas.
"This change means that foreigners can now obtain Turkish mortgages;
which will inevitably lead to an influx of investors to the Turkish
coastal resorts where the real bargains are.
"Having access to Turkish mortgage finance will undoubtedly generate
a surge in demand from buyers," commented Mr Figgins.
"However, the mortgage market in Turkish is very new and I would
encourage potential investors to do their homework."
Examples of properties available in Turkey include two-bedroom
apartments in the popular tourist area of Bodrum, with views over
forest, lake, sea or golf courses for £61,000, and four-bedroom
villas with private pool and panoramic views for £123,124 in Kemer,
Antalya.
For £237,698 five-bedroom semi-detached villas are available in
Marmaris, another popular coastal tourist destination
Turkish law changes 'to lead to investment
boom', Realestate TV, UK - 16 Apr 2007
Turkey is set to become "one of the next big things in overseas
property" thanks to changes in its mortgage laws, it has been
claimed.
Property listings firm Rightmove Overseas said that changes to the
law in the Republic of Turkey now meant that foreigners would be
able to obtain Turkish mortgages.
Head of the firm, Justin Figgins, explained that before the change,
it was virtually impossible for UK buyers to purchase Turkish
property unless they were cash buyers.
The legal amendments would inevitably lead to an influx of investors
to Turkish coastal resorts which was where "the real bargains" are,
he stated.
Mr Figgins commented: "Having access to Turkish mortgage finance
will undoubtedly generate a surge in demand from buyers. However,
the mortgage market in Turkey is very new and I would encourage
potential investors to do their homework."
Recent years have seen a boom in the number of Britons choosing to
invest their cash abroad, according to Liam Bailey of property
consultancy Knight Frank.
Braemore Group Move Into Turkish Market, Homes
Worldwide, 06.04.2007
Award-winning UK property developer moves into Bodrum, giving great
investment opportunities in rising market.
UK developers the Braemore Group, who have won a string of awards,
including The Daily Mail National Homebuilder 2004 and the Daily
Telegraph What House 2004, are moving into the increasingly popular
Turkish market. In collaboration with veteran Turkish company Gemini
properties, Braemore are building a 24-villa development called
Aegean Hills, situated near Yalikavak, on the popular Bodrum
peninsula, a scant 35-minute drive from the airport.
The number of UK property owners in Turkey has jumped more than 200
per cent over the past 18 months, and it's an increasingly popular
holiday destination, so it's no wonder that Braemore and Gemini have
already sold over half of the Aegean Hills' villas off-plan.
Enticingly, Aegean Hills is being constructed to UK standards, so
there's no worries about quality. Set in four landscaped acres,
Aegean Hills is set to boast a split level, infinity-style communal
pool with waterfall, and the well-designed villas feature
floor-to-ceiling glazing, stone flooring, and other luxurious
touches, such as mosaic or mirrored walls. Each villa comes with a
private pool, balcony-style doors to the gardens, and terracing.
Aegean Hills will also benefit from in-house property management and
concierge services, plus a free shuttle service to the charming
harbour village of Yalikavak.
Vila prices at Aegean Hills start at £150,000, for a three-bedroom,
two-bathroom property, including pricate pool, garden, parking and
fitted designer kitchen with integrated appliances.
Turkey 'presenting good opportunities' press
release, Press World, 28.03.2007
Following reports that Cyprus is presenting good buy-to-let
opportunities, some investors may be interested to hear of equally
positive news from its neighbour Turkey. According to research
conducted by foreign investment guide Amberlamb, Turkey has
potential for both growth of property prices and growth in demand
for rental property.
According to Amberlamb director Rhiannon Williamson, Turkey is "a
better market" for British investors than some others that have
recently proved popular. She says the region "certainly has more
going for it in terms of potential for growth in terms of prices and
demand for rental accommodation". However, she also cautions
potential investors in a Turkish property to exercise caution.
According to Ms Williamson, build quality is a serious issue that
needs to be considered. Also, the location of the property, as with
any property investment, is of prime importance in terms of
long-term attraction. However, provided the right property is
obtained, there should be no problems with generating rental income
or obtaining a good resale price, she claims.
Turkey has long been a popular destination for the British
holidaymaker and offers a variety of options for both tourists and
buy-to-let investors hoping to exploit the market. At its simplest,
Turkey offers hot weather and plenty of good clean beaches to
attract sunbathers and people who are looking for a lazy holiday
lounging by the sea.
On the other hand, the country has a rich history that is worth more
than a passing glance. Straddling Europe and Asia, influences from
many different cultures are present in the architecture and artwork.
Istanbul, formerly known as Constantinople, was once the crossroads
of the civilised world and there is much to discover in the city.
It is home to the Blue Mosque, built in the 1600s and so-called
because of the blue tiles that adorn its interior. The architect of
the Sultan Ahmed Mosque, to give it its proper name, was told to
spare no expense in creating the most magnificent and beautiful
place of Islamic worship in the world. Today the mosque attracts
thousands of visitors a year, as do other famous historical sites in
Istanbul, many of which are within easy walking distance of the city
centre.
The Hagia Sophia, for instance, was an early Christian church that
was built in 537. Now known as the Ayasofya Museum, it is widely
regarded as one of the greatest, and most beautiful buildings in
history. Its conquest by the Ottomans at the fall of Constantinople
is considered one of the great tragedies of Christianity by the
Greek Orthodox faithful. Other buildings of note in the city include
the Topkapi palace, residence of the Ottoman sultans until 1853, and
the Hippodrome, an ancient horse racing track that was built an
estimated 2,000 years ago.
Turkey presenting good opportunities 16th March 2007, Assetz
Following reports
that Cyprus is presenting good buy-to-let opportunities, some
investors may be interested to hear of equally positive news from
its neighbour Turkey. According to research conducted by foreign
investment guide Amberlamb, Turkey has potential for both growth of
property prices and growth in demand for rental property.
According to Amberlamb director Rhiannon Williamson, Turkey is "a
better market" for British investors than some others that have
recently proved popular. She says the region "certainly has more
going for it in terms of potential for growth in terms of prices and
demand for rental accommodation". However, she also cautions
potential investors in a Turkish property to exercise caution.
According to Ms Williamson, build quality is a serious issue that
needs to be considered. Also, the location of the property, as with
any property investment, is of prime importance in terms of
long-term attraction. However, provided the right property is
obtained, there should be no problems with generating rental income
or obtaining a good resale price, she claims.
Turkey has long been a popular destination for the British
holidaymaker and offers a variety of options for both tourists and
buy-to-let investors hoping to exploit the market. At its simplest,
Turkey offers hot weather and plenty of good clean beaches to
attract sunbathers and people who are looking for a lazy holiday
lounging by the sea.
On the other hand, the country has a rich history that is worth more
than a passing glance. Straddling Europe and Asia, influences from
many different cultures are present in the architecture and artwork.
Istanbul, formerly known as Constantinople, was once the crossroads
of the civilised world and there is much to discover in the city.
Obelisk International eyes
Bodrum, March 16th 2007, Turkish Daily News
In Turkey, where the
economy has grown at a rate of 7% for four consecutive years, and
the tourism market makes up 10% of the country's employment, Obelisk
International has identified the town of Bodrum as a wise choice for
the potential real estate investor, for a number of reasons.
As one of Europe's most promising emerging property markets, Turkey
is attracting attention from overseas property investors for a host
of reasons, from its growing economy, fast-growing population, and
positive outlook for tourism. Within this exciting climate, Obelisk
International has identified the Bodrum Peninsula as having
particularly strong potential as an investment choice this year.
Of all the visitors to Turkey, around 70% go to Bodrum, so its
popularity as a tourist destination is already established. The
town's exciting nightlife ensures its popularity with young people,
both Turkish and foreign visitors, which supports the strong demand
for property in the town. Bodrum has already established a
reputation as one of Turkey's more up-market destinations, and
development is on-going. Recently, a new airport and two new marinas
have been added to the list of amenities Bodrum already offers.
The Obelisk International research team has recognized the Bodrum
area as unique within Turkey as it offers investors the benefits of
an established resort, but with the advantages of an emerging
market. Over the last few years, the improvements to its
infrastructure have led to an increase in real estate prices of
between 40-50%. However, despite these prices rises, property in
Bodrum is still easily affordable by the standards of overseas
investors, and has strong investment potential for the future.
Bodrum has attracted a growing British community over recent years –
around 2,000 Britons in the last six years – which means that there
is a larger number of English speakers in the town, making it a more
appealing option for British holidaymakers and those wishing to
relocate. Bodrum is also drawing increasing attention from Turkey's
considerable domestic market, as more and more Turkish celebrities
are choosing to spend their holidays in the area.
Recent reports have revealed the latest attraction Bodrum has to
offer visitors. In order to avoid the traditional lull in visitor
numbers (and so rental returns) experienced during the low season,
Bodrum is moving into spa tourism. Bodrum's Hotel Kempinski Barbaros
Bay, which opened last year, is the first to focus on spa tourism,
and more are expected to follow.
Market Analyst at Obelisk International, Veronica Castro, comments:
“As larger hotels move into the area, it is forecast that this will
open the doors for winter tourism generally, with increased charter
travel and more facilities open year-round. This will benefit the
economy of area, and means a positive outlook for buy-to-let
investors.”
Germans beat British in Turkish Property Ownership, 12 February 2007, Turkish Daily News.
According to the
Turkish Daily News the Germans have beaten the British in ownership
of property in Turkey. Whilst this may be good news for Germans
living in Turkey the Turkish government are now examining the
effects that overseas buyers are having on the country.
Turkish government representatives are re-examining the Turkish law
that restricts foreign ownership. Foreign ownership of properties in
Turkey is governed by law making it illegal for overseas property
ownership to exceed the legal maximum of 0.05 percent by area.
Turkey has been a good place to buy for foreign property owners in
recent years, and it looks as if that trend will continue for the
next few years at least. Turkey’s real estate has been traditionally
undervalued and this has led to increased foreign purchases.
Property values have appreciated significantly in the 21st Century,
often in the double digits year over year. While this trend seems to
be slowing somewhat, there should still be a considerable amount of
appreciation in values in the years to come.
Turkish property remains a good investment for a number of reasons.
Over the past few years the country has enacted a number of laws
that make it easier for foreign purchasers to acquire land in
Turkey. Foreign mortgages have also been easier to obtain, and a
comprehensive mortgage bill that looks to be passed in parliament
soon should help even more.
Turkey currently has an overall housing shortage and over half the
population is under the age of 25. Both of these facts indicate that
housing will be in strong demand for many years to come. The
government has also committed to improving infrastructure throughout
the country, which will, in addition to helping the citizens,
increase tourism.
Currently, there are approximately 63,500 properties in Turkey that
are owned by foreigners. A majority of these properties are either
in resort areas along the coast or the major cities. The number one
place for foreigners to purchase property is the resort town of
Antalya along the Mediterranean Coast with 14,610 pieces of property
owned by foreigners. Istanbul, the country’s largest city and a
major business center, is second with 10,695. The Aegean resorts of
Mugla, 8,251, Aydin, 5,839, and Izmir, with 4,572, round out the
areas that have the largest number of foreign property investors
and/or owners.
New Golf Course to help spur investments in Turkish Property, 15th February 2007, Homes go Fast
A new golf course is
set to open on the Bodrum Peninsula of Turkey’s southwest coast
along the Aegean Sea. The Vita Park Golf Resort, located in Milas,
will be Turkey’s largest golf resort with two 18-hole courses and a
golf academy when completed. Housing and property in the area is
being developed to meet the needs for increased demand from overseas
investors, local owners and tourism. This area is one of Turkey’s
most popular for tourists and foreign property owners.
The Bodrum Peninsula is one of Turkey’s prime resort areas. It is
located on the Aegean Sea and has a superb year round climate,
beautiful coastline and crystal clear waters. It is serviced by the
Milas-Bodrum International Airport, which means it is easy to get to
for overseas property owners and travellers alike.
Over the past few years, property in Turkey has been a very good
investment, with prices going up considerably. Depending on the
location, existing home prices have increased from 20-50%
year-over-year, according to Haluk Sur, who heads the Association of
Real Estate Investment Companies. Some have equated the market in
Turkey to that in Spain in the late 1990s. While the market probably
will not continue to grow at its recent rate, Sur noted in an
interview with Reuters last year that it should be at least 10% over
the previous year and could be as high as 20%.
Over the past several years, Turkey has put into place new ownership
and mortgage laws. These laws make it easier to buy property in
Turkey for overseas investors and also make overseas mortgages more
readily available. The new laws, combined with a number of other
factors, have made Turkey a great place to invest in property in
recent years. Currently, approximately 14,500 British citizens own
property in Turkey. That number is expected to rise significantly in
the coming years.
More good news for Turkish property came from the head of the
research department at international consulting firm Cushman &
Wakefield's, David Hutchings, said that they forecast 5 billion
euros of direct foreign investment in the Turkish real estate sector
during 2007.
