Turkey is continuing to gain strength as a renowned ideal overseas investment market. The varied reasons why ever increasing numbers of buyers are looking into the Turkish market can be summarised into the main points mentioned below. While every investor has their own personal preferences for investing in particular markets, the selection revised below comprises of five of the location’s main selling points.
Sought After Emerging Market
Emerging markets often present several optimum investment opportunities for both capital growth and rental yield potential. Prior to an established mass market attraction, prices are often at their lowest. Several other factors normally cause rapid price growth, bringing costs of land and construction up as the infrastructure and ease of access increase. The higher demand for properties usually results in lesser availability, also causing prices to rise dramatically.
Having undergone large amounts of reforms in recent years, the country is now in an economic position compatible with EU requirements. Positioned strategically between Europe and Asia, the country enables important business and trade links between the east and the west. Successful in attracting foreign direct investment, annual economic growth of around 8% has been achieved since the country’s major political reforms. The tourism industry is currently boosting the economy at an incredible rate, assisting with the growth of the real estate investment market.
Ideal buy-to-let market
Whether searching in a city centre, or looking along the resort towns of the coast, rental properties are in high demand. The fast growth in recent years of the tourist market has placed demands for hotels at an all time high. Unable to construct at a fast enough rates to meet the peak season demands, the self catering market is taking off. Relocation of Europeans to meet resort town employment opportunities from the growth of the real estate sector, places demands on mid to long term rental properties. Both long and short term rental properties feature high yield returns to the early investor. Guaranteed rental returns written into the contracts of new developments feature a beneficial opportunity to buyers, who also benefit from the optimum capital growth rates.
Strong Capital Growth
As an emerging market aiming to enter the EU in the near future, the benefits of investing in the real estate market are impressive due to the country’s reforms. Also beneficial to this feature is the property market still enabling pre-EU entry prices. Set to rise considerably in the coming year with or without entry to the EU, capital growth on property purchased early is assured. Having displayed impressive growth levels in recent years of up to 30% per annum in key locations, the impending boom of the sector is set to create further steadily increasing growth levels. Coastal resort towns along the Aegean and Mediterranean are experiencing the highest demand, with some areas currently in their earliest stages of development.
Pre-EU Entry Prices
After becoming an official candidate for entry to the EU in 2005, the spotlight has fast begun to turn towards the nation. Foreign direct investment has started to enter the market on a large scale, with developers and investors seeing the attractions of the location. Similarities between the Turkish coastal resorts and previously popular Mediterranean investment locations have drawn an influx of attention.
The realisation that Turkey offers dramatically lower priced property built to high standards and with excellent capital growth potential, has assisted with the expansion of the region’s attractions. Tax incentives have been created for long term investors, creating further appeal as the expected entry to the EU in 2015 will create instant capital growth potential. Reforms in the financial sector allowing mortgages to non resident buyers have also benefitted investors who entered the market at the lowest entry levels prior to EU entry.
An extensive range of factors stand out individually and combine to create an investment location that has understandably become one of the most sought after emerging markets in recent years. The government has been striving to improve the economic and political situation, with the steps taken so far making a clear difference in the improvement of the nation. Ideal for both pure investment and lifestyle purchases, Turkey is set to be a sought after market for many years to come.