Just when we thought that the global property gloom & doom was never-ending, we appear to see a ray of hope emerge. That ray right now is on Turkey. With most global markets suffering from oversupply, price hikes and rising interest rates, Turkey shows us that there is indeed hope.
It is hard to stay positive amongst all the gloomy reports and while we could easily hike information up and turn them into hype, it would be an outright lie. So when we heard that Turkey is showing rising residential prices after the government decided to relax foreign ownership restrictions in 2005, we were delighted to hear this.
In the past 5 years, Turkey’s property market has appreciated by an average of 7 percent annually. One reason we are seeing this is because of Turkey’s popularity as a tourist hot spot for German’s, Brits and Greeks.
Just in the past year alone, 27 million tourists have taken time out in Turkey to enjoy the sun, sand and warm weather. The country is rich in history and the locals are friendly and helpful, always happy to stop for a chat.
With some of the best coastlines in Europe, it is no wonder the total tourist figure has risen 10 percent since 2007. More and more people are starting to see the great value in this diverse destination.
This demand has spiked short term accommodation in resorts across the country, helping to boost the local real estate market.
With low cost of living and a relative stable and healthy economy, Turkey offers a lot to potential property buyers. If you are from the US, Canada, most EU countries and some Latin America and Asian countries as well as Africa, you can buy property freely in Turkey.
Another bonus is the ease of access property owners have to the rest of Europe. While Jones Lang LaSalle classes Turkey as a “low transparent” property market, tourism will continue to fuel the market in years to come.
All the market needs is sustained supply to prevent a glut of properties like in other once booming markets. Which is much harder said than done.
Photo credits: Phill Davy