Investors wanting to move into the European property market have been faced with major obstacles during the last few years. The Eurozone crisis had led to the Euro being very weak, with the British Pound Sterling also dropping considerably.
As a result, a number of overseas investors are looking to purchase property in Turkey. Despite being in Europe, Turkey is not yet part of the Eurozone, therefore property can potentially be very cheap to purchase. In addition, living costs are substantially lower in Turkey than in the U.K, meaning potential landlords can expect high returns on their investment.
A director of Turkish property specialist Spot Blue said that Turkey was becoming more of an attractive place for investors. Mr Julian Walker said that, ‘Recently, accountancy firm Ernst & Young rated Turkey the second most attractive market for investors in its 2013 European Real Estate Trend Indicator report and PricewaterhouseCoopers ranked Istanbul number one for development prospects in its 2013 Emerging Trends in Real Estate Europe report.’
Walker also said, ‘that you can still buy a new apartment in Istanbul suburb for less than £60,000 seems incredible value, given that the city is already a cultural and commercial hub,’ and, ‘that Turkey was recently upgraded to investment grade by Fitch Ratings is reassuring too.’
Why Turkey appeals to overseas property investors
There are also a number of plans outlined for expansion in Turkey, which make it a very inviting country in which to invest. Plans are in place for the world’s largest airport to be constructed in Istanbul, which will be operational by 2017. By 2023, the airport will have six runways and the capacity to accommodate up to one-hundred and fifty million passengers.
Turkey also plan to bid for the 2020 Olympic Games. If successful, the country can expect a huge increase in investment and tourism. However, if their bid is unsuccessful, Turkey can still expect a rise in the number of tourists, if current positive trends continue to be followed. The World Tourism Organisation recently named Antalya as one of the top five most popular tourist destinations in the world.
Mr Walker was buoyed by the recent figures. He said that, ‘it’s comforting for people buying holiday homes in Turkey that the most recent United Nations World Tourism Organisation report, which ranks countries by the number of international tourists arrivals, Turkey climbed to sixth place from seventh.’
Investors looking at property in Turkey or any other overseas country should take the time to find the correct property insurance to ensure they are sufficiently covered.