Investing In Turkey Reported By Channel 4

A vast and diverse country that straddles Europe and Asia, Turkey is blessed with some of the best coastline in Europe, especially in the country’s southwestern corner where the Mediterranean and Aegean Seas meet. Popular towns in the area include Marmaris, Fetiyhe, Dalyan Kalkan and Altinkum. “Altinkum, when translated, means Golden Sand and it’s not difficult to see why,” says Michael Johns of The Right Move Abroad. “The main beaches at Altinkum are as the name says, and gently disappear into the calm Aegean Sea, making them ideal for swimmers and non-swimmers alike.”

The Right Move Abroad is selling properties priced from £32,990 at Mayfair 2 in Altinkum. The two- and three-bedroom apartments are finished to a high standard and have sun terraces. A children’s pool and communal gardens, with kids’ play area and 24-hour security gives parents added peace of mind in an area that is becoming increasingly popular with British house buyers.
Primarily because of the low property prices – Turkey’s has received favourable comparisons with the Spanish property market in the 1970s – the country is touted as one of the next hot spots by aficionados. Agents Knight Frank predict property prices will increase by 12.5% in 2007, placing Turkey in its top 10 best markets for this year.

The advent of low-cost airlines servicing the southwest (currently scheduled airlines only fly into the region, taking 4-5 hours from UK airports) would create a big up-lift in popularity and prices. Already, easyJet flies to Istanbul, the biggest city, which has become very fashionable in the last couple of years. Trendy Western-style bars and clubs have opened up alongside the more traditional Turkish cafés for which the city is best known. The fusion is an intoxicating blend, one that is becoming ever more attractive to foreign buyers because of recent changes to Turkish mortgage law.

The reforms – which were recently passed by the Turkish parliament and will come into effect on 1 January 2008 – will facilitate mortgages at affordable rates for the first time in the country. Consequently, it is estimated home ownership numbers will increase from the current 4.5% to 12% by 2015.
"The new legislation will dramatically impact on the property market and marks a major step towards improving access to the property market for the smaller number of overseas property investors interested in Turkey in 2008,”

With current demand already outstripping supply in some areas of the country, and its sizable population of 70million on the increase, the market is primed to see property price growth. Demand for affordable property is at its highest level ever, with an estimated need for seven million homes over the next 10 years