Continuing his look at the Turkish property market, Liam Bailey thinks he knows which places are the ones to watch.
Turkey is rapidly becoming known as one of the hottest property investment destinations for the near future, and also one of the safest and most stable places to invest. With 6.4% GDP growth in 2010, a rapidly growing population, a massively growing mortgage market, low property prices, low interest rates, inflation at a 41 year low and falling, falling public debt and a shrinking deficit, it is a reputation it is thoroughly earning.
But of course you can’t invest in Turkey property, you have to choose a property or properties, which are on a street or streets, which is/are in a town or towns or city/cities, and which is/are in a region or regions.
To do so most people buying property in Turkey will choose a town or city and then a property, depending on their reasons for buying and what they are looking to get from their purchase. As most people buying in Turkey are — on varying levels — hoping it will be a good investment, here are three of the upcoming hot choices we see for the year ahead.
This week the Brookings Institute (research body in the US) said that Istanbul was the fastest growing city in the world in 2010, with GDP per capita growing 5.5% over the course of the year. The already large 12.7 million populations is expected to grow to 15 million over the next four years, a growth of over 15%.
By the time this growth has taken place in 2015 an estimated 250,000 homes will be needed in Istanbul, half of the 500,000 required for Turkey as a whole. With the population growing so quickly in number and affluence, combined with growing mortgage availability we can see that the Istanbul property market is a hot one for the foreseeable future.
Fethiye is a hotspot for totally different reasons to what Istanbul is. In Fethiye we are not looking at residential lettings or traditional housing demand, we are looking at holiday rentals and tourism growth. Tourism to Turkey is growing rapidly, with visitor numbers growing from 16.4 million in 2006 to 22.6 million in 2008 and to 25.1 million in 2009. However official figures from the Ministry of Culture and Tourism put visitor numbers at 27 million in 2009 an increase of 2.7% on 2008.
There are many popular tourist destinations in Turkey, many with similar attributes and strengths, and all offering an abundance of sun, sea and sand. Fethiye is included in this list. However, what sets Fethiye apart is its proximity to Olu Deniz, a place so beautiful that its beauty is a treasure protected by the government. And to Dalaman, another popular tourist town which is also home to one of Turkey’s best served international airports.
You can’t buy property in Olu Deniz, and so you have buyers buying for a love of Fethiye itself, buyers buying for a love of Olu Deniz and buyers buying for a love of both. Rental property in Olu Deniz is also at a premium, and this gives way to the belief that property in Fethiye will continue to see very strong rental demand, especially as more and more people put together their own package holidays using the internet.
Alanya is one of the most popular tourist destinations in Turkey, with millions of tourists from around the world holidaying here for its very long season. Its popularity is evidenced by the fact that it is home to the largest population of British expats in Turkey, and that is saying something.
According to reports tourists are packing the hotels to capacity, and this is bringing increasing demand for private holiday properties to let as tourism grows.
Another reason Alanya makes the list is because of the Gazipasa airport just outside the town. Gazipasa was built almost a decade ago, but has been kept from opening. That changed when it started running domestic routes last year. According to top sources at the airport operator TAV, completion of the runway expansion work will allow them to start offering international flights later this year.