Investors previously interested in the Dubai real estate market are now looking into Turkey for the economic stability, strong mid to long term growth potential, stability of the overall market, lifestyle similarities, attractive short to mid haul flight options and overall confidence in the market.
Interest continues in the Dubai real estate market, yet not at the same pace as in recent years. The downturn of the market has lead to potential Dubai property investors considering other markets showing stronger growth potential and stability.
The drop in sales over the past two years has lead to a surplus of units available and a subsequent drop in property prices. While the lower cost of units provide incentive to some potential buyers, others with an interest in the market are holding back to avoid further potential losses.
Having seen growth rates of close to 20% per annum, the limited financing opportunities lead many would-be investors to look into other emerging markets with improved long term stability. Turkey has been found to provide many of the features of Dubai’s initial property boom, yet also with improved accessibility, financing options and closer similarities to the Western lifestyle for European investors.
A pricing correction is inevitable in Dubai’s property market, expected to stabilise by around 2011. Strategic plans introduced by the government have been designed to enable a long term mature market economy, allowing for improved flexibility and stability to all sectors. Importance is being aimed at other sectors that were somewhat left behind as the emirate was enveloped by the real estate market boom.
An improvement in the lifestyle for residents with healthcare and education being a priority are some of the new aims for the direction of the economic development in Dubai. Positions of employment are being created in sectors other than real estate, with financial and transportation services acting as a new area of focus.
While the changes in the long term structural development of Dubai are beneficial for sustained development, the real estate sector is moving into a lifestyle buyers market. Property investors interested in an emerging market for capital gains and rental yield potentials have started to take an interest in the excellent sustainable growth the Turkish property market is presenting.
The ultra modern, futuristic skyline so famous with Dubai real estate provides a unique visual attraction of the market, yet the investment appeal is currently much more attractive in Turkey for mid to long term growth potential.
Turkish economic growth levels have been consistently steady for several years, with a varied combination of industry, banking, commerce, agriculture, transportation and even oil production providing strong fundamental economic stability to the nation. Tourism growth of the nation has been exceptional, with varied cultural and climatic attractions appealing to ever increasing numbers of the mass tourism market.
Intent on increasing foreign direct investment, the Turkish government provides incentives to real estate investors with capital gains benefits. The strong potential for Turkey entering into the EU in 2015 is assisting with strengthened interest in the real estate market for impressive growth potential.
While the Dubai property market still interests many buyers from around the world, the distinctions between the two markets are leading many would-be Dubai investors to begin considering the features and benefits associated with property investing in Turkey.