Several reports recently have stated that Turkey will be one of the hottest overseas property investment destinations in 2011. With rapid economic growth, low prices, low interest rates, falling unemployment and high liquidity one finds it really hard to envisage any other scenario.
Turkey is one of the biggest countries in the world, and because of its current growth rate and huge potential it is also one of the most talked about as well, thus someone telling you to invest in Turkish property is like telling someone to catch a red bus in London and expecting them to know which one.
Here are some of the best places to invest in Turkish property:
When it comes to pure property investment there is really nowhere better than Istanbul. This is the main growth centre of Turkey, the local population is growing affluent and people are moving to the city from across Turkey to find higher paid jobs. As a result demand for apartments and townhouses in the city is soaring, as is housing in the suburbs.
According to a recent report in the Global Property Guide, Istanbul is one of the best residential property investment destinations in Europe. Demand for property to rent is far outweighing supply, and yields are averaging 6-7%. It also has a ready-made exit strategy: with the economic growth in Turkey, affluence is growing rapidly, and so is the mortgage market, buyer demand from the local population is growing rapidly.
Property is still cheap compared to other cities, according to the Global Property Guide, property in Istanbul costs €2,386/square meter, compared to €6,622/square meter in Athens, and €4,015/square meter in Prague.
For holiday home investors there are few places with more going for them than Fethiye. Turkey knows that its strengths are sun, sea and sand, and that tourism will always be one of the biggest economic drivers, as a result millions are being spent on developing the touristic towns into some of the best in Europe.
The downside of this is to create many towns with similar strengths and attributes, with very little to choose between them from a property investment perspective. This is why Fethiye is tops though. It is one of those top tourist resort towns in its own right, but is located near more top tourist spots.
Dalaman is just 20 minutes away, and as well as being another of Turkey's top tourist spots, is also home to one of Turkey's best served international airports, which is another strength for Fethiye as well.
But the real clincher is the fact that Olu Deniz is also just 20 minutes away from Fethiye. Olu Deniz is an absolute paradise, so beautiful that it is heavily protected by the government. Because property in Olu Deniz is like hen's teeth, those looking for a home near the spot must buy in nearby towns like Fethiye.
This gives Fethiye properties a powerful marketing package on the holiday rentals market, and makes it very popular with holiday home buyers and investors.
Antalya packs an incredibly powerful package. It has its own international airport, which is one of the best serviced by international carriers in Turkey, and because it is one of the most popular cities with foreign buyers it is being developed rapidly into one of the top tourist towns in Europe.
Given this, the low prices of property in Antalya are a major selling point. With all that going for it you would expect Antalya property prices to be higher than much of Turkey, but that is not the case, in fact 2-bedroom apartments in Antalya start from just over £30k, whereas in Fethiye prices for 2-bedroom apartments start from £59k.
This makes Antalya property fantastic value for money, increases the potential rental yield and allows plenty of room for capital growth.