Local and international demand is high in the Turkish property sector. A market that caters for the style hunter, the city slicker and the golfing enthusiast.
Rising foreign demand coupled with record levels of tourism and healthy economic conditions mean that Turkey is one of the strongest players in the real estate market. Within the country, many new and exciting emerging markets are forming, making Turkey worthy of the investor interest that it is attracting worldwide.
Istanbul has been enjoying between 10-15% property appreciation every year but despite these impressive rates of growth, Istanbul real estate remains a bargain compared with other global-standard cities. Prices start at around $1,000 a square meter, which is significantly less than many other global city locations. As well as foreign investment, local demand has been huge. Half the population of Turkey is younger than 30 years old and many are attracted to this vibrant city. Thanks to a strong economy and low unemployment, more of these young people are buying homes of their own. All these favorable conditions have propelled Istanbul into the property limelight and many foreigners have been buying. Istanbul contributes 55% of Turkey's trade and hosts 16% of the country's population. The young people in Istanbul all need somewhere to live making the city exciting for buy-to-let investors.
The knock on effect of the popularity of the city of Istanbul had led to neighboring areas also becoming property hot spots. Bahcesehir and Beylikduzu are two suburbs of Istanbul. They are fashionable hubs for more affluent Turkish people as well as overseas buyers, many from the Gulf. Here you will find many new stylish apartments in gated developments with a range of facilities. Prices start in the region of £65,000. There are plenty of things to do locally with shopping malls, waterparks and great travel connections into the city. Local demand for rental properties is also high with university campuses and in Beylikduzu there is the Kolan and Medicana hospitals, where staff requires accommodation.
Thanks to a string of celebrity endorsements, Bodrum has emerged as a new luxury lifestyle destination rivaling the South of France. The cool fashion crowd, led by Kate Moss, is often to be found soaking up the sun or detoxing at the LifeCo spa, on the north coast of the Bodrum peninsula. Halikarnas Nightclub in Bodrum Town is a great place for celebrity spotting. Keep your eyes open for the Jaggers, Pamela Anderson or Sting. Many big names come to Bodrum to enjoy their super yachts. Bodrum Yalikavak Palmarina is a wealthy billionaires playground where many of them can be found, although the secret locations of their yachts keep their privacy at all times. Those that do want to venture off their yachts can be found at one of the many designer shops or famous restaurant brands such as Cipriani and Nobu.
Turkey is leading the way within emerging markets for golf resort developments according to a report entitled ‘Golf Resorts in the European Mediterranean Region’. Published by the golf advisory practice of accountancy firm KPMG, it believes that Turkish integrated golf resort developments have the second strongest mid to long-term growth potential among Mediterranean countries. Golf resorts offering rented villas in Turkey are also on the rise and account for more than 15% of the market, great news for buy to let investors. Furthermore, Turkey’s Western Mediterranean Development Agency (BAKA) teamed up with Turkish Airlines to launch a scheme to attract more French golfers to the Antalya region where the Turkish golfing center of Belek is.
Did you know?
- Turkey is now the sixth most popular holiday destination in the world, according to 2013 data from the United Nations World Tourism Organization (UNWTO)
- Antalya is Turkey's most visited destination.
- House sales to foreigners in the first 10 months of 2014 increased 66% year on year to reach 15,417, according to the Turkish Statistical Agency (TurkStat).
- There are approximately 63,500 properties in Turkey that are owned by foreigners.
- Turkey currently has an overall housing shortage and over half the population is under the age of 25. This indicates that housing will be in strong demand for many years to come.