Foreign sales of Turkish real estate set to top $5 billion in 2015
Recent data released by the Turkish Statistical Institute confirms that recorded real estate sales from January to November 2014 showed an increase of 59% from foreign buyers, when compared to the same period in 2013. These statistics equate to foreign buyers purchasing an average of 1,554 houses per month.
Why are sales set to continue increasing in 2015?This is the most obvious question; especially with many other countries are still experiencing slow growth in the property market and depressed prices which pose fierce competition to those offered in Turkey. The immediate reason has to be the stunning coastlines steeped in historical culture and the beautiful unspoilt beaches which fringe the clear blue waters of the Mediterranean. This combined with the potential that this country still offers it is easy to see why Turkey gives the Costas a run for their money in terms of coastal properties available under the £100k threshold. Turkey is also proving to be a firm favourite with those looking to purchase in the high end price range, as they cannot fail but to be impressed by the affordability when compared to the Italian offerings of Sardinia or the Spanish equivalent Cote D’Azur.
Until 2003 foreigners were not permitted to purchase real estate in Turkey, fortunately though, the laws that have come into force in recent years, have removed the considerable obstacles making it far easier for all nationalities to make an investment in the property market. From the time when the rulings lapsed, foreign buyers have been competitively purchasing in various provinces. Huge support for opening the property market to foreign buyers is strongly endorsed by the ruling Justice and Development Party (AK Party) despite the opposing parties being completely against the developments.
With the property laws that governed foreign nationals with regards to purchasing property up until 2012, now being far more lenient and simple, Turkey has become even more appealing to a multitude of investors from all over the globe. Currently there are over 35,000 British nationals who have chosen to purchase a wide array of properties that sit on and around the shores of the Mediterranean. Alongside the British there is a growing number of Scandinavians and continental Europeans. Rapid growth has also been seen rapid growth in the number of Russian and Middle Eastern investors. The one huge benefit that must have had some bearing on real estate generally is that Turkey now awards residency permits to all foreigners buying property.
Celik made reference to the real estate buyers located in the UK, Germany, Saudi Arabia, Kuwait and other Gulf States as increasing every year, and he confirmed that he believes this trend will continue to rise further in 2015. Although there was a decline in overall property sales for seven consecutive months in during 2014, momentum increased and saw the total real estate sales to amount to a staggering 1,030,000 homes sold in the first eleven months of the year.
Purchasing property in Turkey has become easier year on year and there is now an established market for overseas buyers, the changes made at the end of 2014 in regards to title deeds means that those purchasing resale properties are now able to get the title deeds in one day rather than the long, drawn out process of old. This is a major plus for any investor and or individual and further encouragement to invest in Turkey’s property market. The uncertainty that surrounded the elections is now over bringing further encouraging news, as the Turkish Lira continues to show signs of recovery in terms of monetary worth, as it continues to climb back up.
Cost of LivingThe cost of living is a major factor that fuels those who are semi retired or families looking to relocate. With the regular everyday costs for example locally grown produce, cost of labour, healthcare, education and property taxes being far lower than most. Anyway, who wouldn’t want to move to a beautiful, fast emerging country! Yes it is true, the cost of living is further appealing with utility costs currently standing at a price that other European countries.
Travel & WeatherDirect flights are much easier to locate these days with out of season flights available from the UK. Several UK tour agents now market winter holidays to Turkey, with this most likely due to the overall average temperatures being far warmer through winter than those in the UK, with the warmest areas predominately in the southern beach areas. The flights and weather are just further reason why Turkey is holding its own amongst all of the favoured holiday destinations on offer.
With huge endorsement from the Economy Minister, Nihat Zeybekci, combined with the outstanding welcome received by all in Turkey, it is very clear that any foreigners choosing to visit and live in Turkey will be most welcome.
Where to invest in Turkey in 2015Recent studies have been able to provide a clear understanding of the provinces that are preferred by the non-EU investors as Bodrum and Istanbul, whilst the British preferring the diverse resorts located around Fethiye, Kalkan and Antalya. Turkey is undergoing rapid economic growth seeing businesses thriving particularly in Istanbul where investment into commercial districts is ongoing. Istanbul has recently emerged as the third most visited city in Europe, proving that investment in rental property would be wise and lucrative. There is an increasing demand for student accommodation. Whilst demand is strong, it is vital to choose the right area for your investment to really work for you and this is where we can offer invaluable local knowledge and provide you with the very best opportunities.
Another are that has become increasingly popular over the past two years is the Bodrum peninsula, and with the new Palmarina now complete, this region is seeing an emergence in luxury brands and a wealthy cosmopolitan market. Those investing in real estate in Bodrum are buying into a life that is both laid back and sophisticated. Bodrum caters for all and with the abundance of things to see and do there is never a dull moment in this outstanding area.
Fethiye is a beautiful city, with a real estate sector that provides infinite opportunities and with the innovation of ideas such as beachfront apartments it has proved to be lucrative to the Turkish economy. Villas with sea views are the most popular and in demand. Looking at the ever growing number of tourists that flock to this area those choosing to invest will have their initial costs covered in a relatively short period of time. The properties that are offered in Fethiye are still competitively priced and affordable however the demand and supply forces of the market will more than likely see prices rising in the not so near future. With the market trends constantly changing there is considerable volatility increases in regards to real estate in Fethiye.
Kalkan provides the more discerning foreign buyer’s with an outstanding opportunity to purchase seafront properties at a fraction of the cost of any other Mediterranean destinations. This combined with the average rental returns showing to be in the excess of 5% per year it is easy to understand why this area is both an idyllic holiday destination and also a superb investment. Formerly a fishing village Kalkan has retained all of its authentic charm and is one of the most well hidden havens in Turkey. With the nearest airport, Dalaman being approximately 120km Kalkan doesn’t attract the hordes of holiday tourists and as such has become a firm favourite amongst those seeking peace away from the crowds. Due to the proximity of the Greek island of Meis and the exclusive harbour in Kalkan the town is also a favoured stop for sailors as they make their way around the stunning coastal route running from Fethiye to Kalkan. Property prices in Kalkan are higher than most other areas of Turkey; this is due to the limited building space and high end reputation of this town, coupled with an elevation which means that the majority of properties available in Kalkan enjoy stunning sea views over Kalkan and Kalamar Bays. Kalkan offers a diverse range of property choices from sophisticated luxury villas, more affordable and modest seaside homes through to apartments and penthouses with panoramic views of all that is Kalkan. Property in Kalkan is perfectly suited to those looking for a holiday home or a buy-to-let and with the rapidly increasing prices investment in Kalkan property is forecasted to It deliver attractive capital gains in a relatively short period of time.
In conclusion the majority of purchases by foreign buyers last year were situated in the area of Antalya, where sales amounted to over 6,000 homes. Hotly contesting this was Istanbul with 6,035 houses being purchased. The total sales in these favoured locations accounted for over 70% of the house purchases made by foreigners.
Act today, as 2015 is set to become another record year of property sales in Turkey and the knock on effect will begin to come to fruition as the prices can only increase.