Real Estate Scenario in Turkey

Turkey, owing to its strategic geographical location bestriding two continents (Asia & Europe), it’s unique blend of cultures and civilizations, and not least its scenic beauty and appealing tourist hotspots, has been an eye-catcher for real estate investors across the globe. Top property buyers in European-Mediterranean countries have traditionally been from UK whose prime investment destinations have long been Spain, France, Italy and Cyprus. But as these places are gradually getting more expensive and saturated, UK’s property buyers are looking for alternative overseas destinations and Turkey appears to be one of the best choices for them.

Turkey’s property prices have also seen a swift upward trend over the past few years but are still low as compared to the other countries mentioned above. Property investment in Turkey can prove to be a wise and extremely lucrative decision for real estate buyers as the prices continue to go higher. There are many factors which suggest that Turkey property prices will continue to witness an upward trend:

In 2005 Turkey started negotiations for full EU membership which, if materialized, will also contribute positively to property investment in Turkey. Property prices, which already have risen up to 25% in the last 12 months, are estimated to multiply manifold as soon as the country is embraced by the EU and granted its membership.

In 2007 alone, a whopping number of tourists (around 25 million) from around the world visited Turkey, and the figure is estimated to double in a couple of years. Moreover, numerous infrastructural development projects are afoot in Turkey which focus on recreation in order to enhance the tourist appeal of the country. A number of events of venerable international standing, F1 races for one, have also been held in Turkey for the same purpose. Seeing the astounding tourism in Turkey, it’s not hard to predict that property prices are set to rise further in Turkey.

Furthermore, new property laws in Turkey governing regulation and supervision of property market are also to cast a positive shadow on Turkey’s real estate market. Not unlike other real estate investment meccas of the world, Turkey also suffers the trend of demand outstripping supply, which turns out to be a good sign for the property investors. Another factor pointing to the imminent rise in Turkey’s property prices is the country’s average age of houses: Older residential buildings have either come closer to completing their age, or have outlived their average age. This creates an increased demand for new residential projects which in turn will benefit the property investors.