James' Blog about Property

Discussion, advice and philosophical points about all things property whether UK or International markets

Why is the Turkish property market doing so well?

Posted by jamesdearsley on April 9, 2009

Currently we, at Atlas International, are seeing one of the real winners of the Property Market in 2008 and 2009 being Turkey. In this article I will therefore summarise THREE major reasons that, in my humble opinion, are reasons for this to be the case and shall try to provide useful resources that support these facts.

I have tried really hard to keep it to only three reasons as I personally believe these are the main reasons that the Turkish Property Market is seeing such an upsurge this year. Any more than three and I fear I would dilute the impact of them

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Number One Reason Currency and Economy Reasons  


Most people are aware that Sterling has weakened considerably and this has had an effect on decisions that some people are making about where they will purchase their overseas property – especially if it is an investment purchase. Turkey has the advantage of being out of the Eurozone and hence is able to offer favourable currency options when buying a property.


As an example a buyer from the UK can buy the property in Sterling which is obviously a huge incentive for them and explains the reason why we have seen a huge increase in UK buyers in the last 12 months. However, we are also seeing a huge pick up in our European market as they also have the option to buy in Sterling. Considering the 20% increase in the Euro’s strength against Sterling this means a fantastic incentive for the Europeans to be buying as well.


The Economy in Turkey is also doing a lot better than other countries with its strict policy on money lending that was as a result of its own financial crisis in 2001. Therefore it did not over expose itself in the Sub Prime mortgage debacle and, though it will face a tough year in 2009, it is expected to bounce back quickly and the investment firm Goldman Sachs even expects it break into the Top 10 economies of the World by 2050.


Number Two ReasonExpected Capital Growth Figures


Turkey has already seen an explosion of growth in recent years and as a result property prices have risen considerably. Large price rises have been witnessed in the South West of the Country around Alanya which has been supported by the market predominently around Mainland Europe. Moving Westwards and there have also been good price rises in the Bodrum and Didim areas and this is the focus of much of the expected growth in future years.


The Financial Times in the UK voted Turkey into the Top 10 investments for 2009 with particular attention to be paid to the Altinkum and Bodrum areas. They highlighted these 10 areas as not only safe but also areas where “this is the time to prepare to buy before the head moves in”. Read the full article here.


Deutsche Bank recently released a report stating that there were predicting a growth of between 5-6% consistently over the next 10-15 years. When you consider that currently here in the UK we are currently looking at a return on our savings of 0.66% on average (source: www.moneyfacts.org) then you can see the attraction! Also when you consider that you can pick up a property for as little as £27,000 (€30,000) this is usually a figure that people will have in the banks anyway and so it just makes financial sense to have an investment that you can use and is actually making money at the same time.


There was also a prediction recently by a Turkish News Provider (Hurriyet) that because of the rapid growth in the Tourism industry, there is an expected “property boom” in 2010. Concrete proof that, not only is there an established market out there already (73,000 overseas buyers according to Turkish Statistical Institute) but people buying now are buying at a fantastic time.


Number Three ReasonTourism Growth and its effect on Rental yields


Because of the strength of the Pound and Euro against the Turkish Lira it has also meant that travelling on holiday to Turkey has become really cheap – in fact a recent report by the Post Office in the UK stated that Turkey “was one of the worlds most affordable places for a Brit to visit”. With this bit of news and also ABTA (the Travel Association in the UK) reporting that Turkey will be one of two “Big Growth Areas” in 2009 it all bodes well for the property market…..


With this increase in demand we have also seen an increase in access routes as well. One of the next super destinations has been quoted as being Bodrum and this is one reason why EasyJet opened up more routes there in 2008 and this has continued into 2009 as well. Access has now improved from all major European cities previously flying into Antalya or Alanya predominantly who are now opening up more and more flights to Bodrum or Dalaman.


This opening of access demonstrates why visitors were up 13.1% in 2008 according to the Tourist Board in Turkey and countries like Austria, Germany and France had increases of between 26 and 31% perhaps testament to more flights being available.


It is natural that with numbers of people that are coming to Turkey on holiday that the rental market will increase dramatically and so will occupation rates. Another reason why Turkey is also becoming a great location for investors. However, this is also a great way of people to raise a bit of money in an otherwise difficult market domestically. They can actually have their money working for them and earning a bit more on top of the already discussed capital gain.




In this article I have tried to just simply give fact over opinion and called on a broad area of research from The Financial Times to Turkey’s own Tourist Board. I hope it shows that, despite it being a tough year for everyone, Turkey maybe a little bit of fresh air.


I truly believe that people that are worried and just leaving their money in the banks at the moment are making a fundamental mistake as actually due to the low levels of interest rates globally and higher inflation we are actually losing money. Why not let your money work for you a little bit and I hope that this article has been useful to show you how this would be possible. Feel free to view my company’s website by clicking here if it Turkey is of interest to you.


Wishing everyone well.











2 Responses to “Why is the Turkish property market doing so well?”

  1. Jan said

    I agree with you but maybe its worth mentioning one more reason which has more affect on buyers:
    Turkey itself:
    Its a lovely country, lovely people and with a perfect and healthy climate throughout the year. Living costs are much lower then in any other country around the Mediterranean sea. Therefore its perfect for retirement. We have witnessed a sharp rise in retired people settling over to Turkey. Pensions are decreasing and people want to keep up their standard of living, to do that they have to reduce their costs so Turkey is their first choice since the classical locations in Spain or France have become to expensive.
    Also financing at home become much more popular since it facilitates financing, e.g. Is-Bank GmbH with its Branches in Germany, Holland, Switzerland and France and BNP Paribas with its International Buyers Division (former UCB) in Cooperation with TEB Bank finance properties in Turkey from home (France, UK, Spain, and Netherlands and Italy). This became a strong motivation to buy now.
    Unfortunately with the rising demand we witness more problems, with people being frauded: e.g. not getting their Tapu, buying properties in areas in which they are not allowed to (historical or mil. security zones), making advance payments to false “sellers”. In the last case the tenant sold the flat to a foreigner and ran off with the advance payment of 50.000€. Just to mention a few problems.
    A little more caution and some easy precautions can make the buying process save and prevent future problems.
    Best regards from sunny and 20 °C Istanbul 🙂

  2. I agree with what you’ve written James.

    Turkey is indeed a very popular place for both investor and lifestyle buyers at present. I think its interesting to remember that the world is a large place, one mans misfortune is certainly anothers gain and this is particularly so in the world of international property!

    Best wishes

    Laura Milne

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