Will overseas investors continue to buy property in Turkey?

Question

Over the last 3 years, other than the price increase (value) of property in Turkey, there has been a sharp increase in UK, Irish and european investors keen to buy turkish property. Now that the government elections are over and democratic, how does it all look from the investors side?

http://www.turkish-property-world.com/

Answer 1

I have been involved in the Real Estate Business in Turkey for the last 4 years, and seen a lot of changes, 3 yrs ago for example people were investing in their droves when property was very cheap, but over the past couple of years contructors have been asking inflated prices hence a slow down in the market, i have noticed over the past few months a dramatic reduction in prices, thus hopefully now the market will start to improve again and constructors will realise their downfall, and investors will start investing again.....

http://www.european.com.tr

Answer 2

From an investors point of view it remains a sound investment provided you don't want to sell in the medium term (less than 5 years). Why? The resale market is not mature enough yet to stand real exponential growth. All that's truly rising is land price. So, buying land - specially with planning permission for say, two or more residential properties is also well worth looking into. Just be sure there's time-limit for commencing construction and any other irritating conditions. In other words ALWAYS find a good lawyer who also speaks excellent english and, automatically has every document translated for you. Then, be sure to keep these (translated or not) documents somewhere ultra safe.

Inevitably the longer haul it's hoped Turkey will join the EU and, if & when this occurs, prices of new-build & resale will likely climb at a very pleasing pace.

As ever, be careful what you buy, who from and, most importantly, where?!! Best to use an an agent who is capable of conducting and providing a 'Due Diligence' Report for a new-build, and check for a local member of the **RICS for a resale to conduct a thorough survey. Most surprisingly there's a few about in Turkey and their charges are generally fair & reasonable.
(** RICS = Royal Institute of Chartered Surveyor.)

Biggest problem from an investors standpoint is the lack of good rental income. Air-fares are still high to Turkey and therefore, it's still cheaper to book the entire flight & hotel package. Sadly, the low-cost airlines are still struggling to gain entry and this could be wrapped up with the Turkish governments negotiations for EU entry.

There are cheap flights at certain time sof the year but they get booked very quickly. A family of 4 can easily find themselves paying GBP 1,000 for air fares let alone a further GBP700-1,000 for a vliia + car hire, etc, etc and, yes, it's very easy to blow more than GBP 3,000 for a family of four once you factor in trips out, bar & restaurant fun.

So, in truth, it's either back to land banking or, find a devloper that provides a 'guaranteed rental scheme' or, talk to an agent that can prove it's possible to achive enough income to wash against all overheads for a year.

My guy found me something special which I know is no longer available, so sadly, I can't even give you a clue where to look. Presume you're not sure about the web page you brought up and I'd guess you're probably right since they only been in existance for 5 years and who knows what training their staff have - let alone what qualifications, if any?

Personal experience does suggest you should look away from Alanya & Antalya areas. You'll be far better from a rental income view between Fethiye & Bodrum (but NOT Marmaris!!!). My professional guy on mainland Europe always provides detailed Due Diligence Packs to buyers and I know he deals direct with several developers in the S.W. There's also a lady who's excellent around Fethiye and Calis way. If you want their details, let me know.

Hope this helps? Good Luck

Answer 3

Yes, looking very profitable medium to long term.