Investment in Turkey

Is now the right time to invest in a property here in Turkey? We believe that it is, but we are not alone in this, take a look at some of the facts and figures.

There has been a sharply growing demand for buying real estate in Turkey. As of January 2005 the number of foreign nationals owning property in Turkey has reached 51,044, 18.2% of which are British. Since July 2003 the number of foreign nationals who

Is now the right time to invest in a property here in Turkey? We believe that it is, but we are not alone in this, take a look at some of the facts and figures.

There has been a sharply growing demand for buying real estate in Turkey. As of January 2005 the number of foreign nationals owning property in Turkey has reached 51,044, 18.2% of which are British. Since July 2003 the number of foreign nationals who own property in Turkey has increased by 214% and 35% respectively. The number of foreign nationals who own property here is expected to surpass half a million within 2-3years.(*)

[(*) – Data source – Turkish Embassy London, Office of the First Economic Counsellor]

In recent years the Turkish economy has stabilised, economic growth has increased and is set to continue. As of October 2005 Turkey has now officially commenced EU membership negotiations. The fact of becoming an EU member state will have a significant impact on property prices, although best estimates as to when this might be vary from 7 to 16 years.

The effect on the amendment to legislation in 2003, enabling foreign nationals to more easily purchase property in Turkey, has already been felt with the start of a housing boom, especially along the coastal areas.

The new mortgage law and other relevant laws regarding the regulation and supervision of the property market will be enacted by the end of 2005.

Housing supply in Turkey is currently lagging behind demand.

“In our opinion prices in beach areas are expected to increase initially by 50%, followed by in the region of 100% in the next two to three years”- A Place in the Sun, October 2004, Turkey report.

Investing in ‘Off-Plan Properties

If you are a serious investor this is likely to be your favoured option when buying property. You can expect above average returns from investing in the property developments identified by Turkish Sun Homes. We are working alongside the best developers in the area and can identify to you the most popular and sought-after properties within each development.

You will have the benefit not only of our guidance as to the best investment opportunities, but also you will have a fixed purchase price and be able to spread the cost of your investment by way of a payment plan, making installment payments at pre-specified stages of the build. We will provide you will regular updates on the progress of the build and of the asking price increases on the development so that you can watch the value of your investment increase before you have finished making your payments.

You will have the option of selling you property (a) during the construction, where you will benefit from any pre-completion price increases in addition to capital market growth or (b) wait for construction to be completed and either sell immediately (it is easier to sell a completed property to a ‘lifestyle’ buyer) or hold on to the property for a longer period.

Some of the key factors to consider when purchasing off plan property for investment purposes:

• Location (always!) – close to beach, amenities, transport, etc., including future plans (i.e. golf course)

• Quality of build – you do get what you pay for, this includes both the finishings and “extras” of the build and the amenities within the development itself (swimming pool, fitness centre, gardens, etc)

• Size of development – your chances of successful resale are increased in a lower density development where you will have less competition. If the development has be sold-up and was over-subscribed you are in a prime negotiating position. There may be some exceptional larger developments that break this general rule, we will advise you if this is the case with rationale.

Other Investment Opportunties

If you are considering establishing a business or venture in the area, there are plenty of opportunities at the present time. Let us know about the areas that are of interest to you, your budget, whether you will be making a permanent move here or not, and your expectations in terms of time and returns. We will provide you with suggestions, support and advice for the project and will undertake project management for you should you go ahead. The opportunities here are boundless given a little imagination, courage and commitment! Contact us to discuss in detail.