As Turkey prepares itself for a record-breaking summer tourist season, with 25 million visitors expected by Turkish officials this year, the country’s property market looks set to attract a record number of British buyers. Indeed, a Nat West survey of British mortgage lenders has identified Turkey as the third most popular country to buy property in the next three years.
“There is growing interest in Turkish property due to its excellent value, with high-quality apartments from as little as £40,000,” explains Dominic Whiting, editor of the Buying in Turkey guide. “Huge investment is being channelled into the development of the coastal areas as part of the government’s plans for Turkey to become one of the world’s top five tourist destinations by 2023. On the ground, this means new airports, roads, golf courses, marinas and hotels- all of which have a very positive effect on the desirability of Turkish property and values.”
In addition to the million-plus British tourists that visit Turkey each year, the pleasant Mediterranean climate, relaxed way of life and low cost of living are attracting a growing number of permanent British residents and retirees.
“A British pension can support an excellent standard of living and the quality of private healthcare is high with modern clinics and hospitals with English-speaking staff in the main resorts,” says Dominic Whiting, who is based in the Turkish city of Izmir for much of the year.
The availability of new finance options, with several Turkish banks now offering 60-100% mortgages for new and off-plan properties, is an important factor increasing demand from foreign buyers. Interest rates on sterling mortgages typically start from 7.5% with loan terms from 5-20 years.
According to a Europe-wide report by Savills Research, property values in Turkey increased by an average of 15.5% each year from 2002-2006, with industry experts expecting 15-20% increases in 2008. However, an over-supply of property in some areas means that not all the resorts are a good buy. When purchasing new or off-plan property care should be taken to buy from an established developer with a high build quality. Location and communal facilities, if you are buying on a development, are all important when you come to rent or resell the property too.
Bodrum
Called the St Tropez of the Turkish riviera, Bodrum is the country’s most cosmopolitan resort and offers an unrivalled choice of entertainment, restaurants and nightlife. Framing the town’s picture postcard castle are a marina and yacht-filled harbour, which is a port-of-call for cruise liners and departure point for ferries to the Greek island of Kos. Beyond the town itself are a string of smaller, quieter resorts such as Bitez, Gumusluk and Yalikavak, which have beaches and a diverse choice of property. Because of steep hills along the coast and building height restrictions many have a sea view. An 18-hole golf course is scheduled to open later this year in Tuzla, near the town’s airport, with a number of new developments in the area.
Dalaman
Dalaman is a hot spot for 2008 thanks to the government’s development plans for the area and the start of Easyjet flights from Gatwick on 31st March. The low-cost airline will operate 4 weekly flights, costing from £79 one-way, in addition to the dozens of charter and scheduled airlines already flying into Dalaman airport’s award-winning new international terminal. Created as part of the state-led tourism development scheme, there are plans for 70,000 new hotel beds, two thermal spa centres and a golf course, due for completion in 2009. A road tunnel, opened in 2006, brings the upmarket yachting town of Gocek within 15 minutes drive.