Economic Factors
Turkey Economic Factors
Turkey has many market drivers that make it an ideal location currently for property investment. Here we look at some of the reasons why Turkey is one of the world’s hottest investment property locations.
* Excellent capital growth projections of around 25% per annum
Land prices in Turkey have risen in recent years and, in many cases, doubled. In 2005 to 2006, property prices have risen by 25–40%. Recent research shows that by comparison investments made since 1994 have yielded the following average returns: * Stock market - 18% (gross) * Turkish property - 568% (net) * Pension plans significant loss (net) * (Source: invest-in-turkey.co.uk) * In the opinion of ‘A place in the Sun’ in the October 2004 edition of their magazine, price increases in beach areas are expected to rise initially by 50% and then over the next two to three years by 100%.
Taking an average of 25% capital growth, a property purchased at GBP 60,000 with sustained growth over five years will have a market value of GBP 183,105, entailing a huge 305% return on investment.
Turkey is just entering the EU process
Turkey is currently at the very start of the long road to possible EU inclusion, meaning there are still another 5-10 years before prices rise substantially. Prior to EU membership, there are many factors yet to be discussed and many of Turkey’s issues that need to be corrected before incorporation will be seriously considered. However Turkey has some strong backers for its entry and when it does get accepted into the EU, it is reasonable to expect the price of property to rise greatly in line with a huge surge in tourism.
Many investors are purchasing in Turkey with EU inclusion as a major driving force, while looking to take advantage of the current low property prices and growing rental market.
Turkey is at the brink of a property boom
With so many indicators, many of which are outlined on this page, its clear to see that Turkey is
Turkey has many market drivers that make it an ideal location currently for property investment. Here we look at some of the reasons why Turkey is one of the world’s hottest investment property locations.
* Excellent capital growth projections of around 25% per annum
Land prices in Turkey have risen in recent years and, in many cases, doubled. In 2005 to 2006, property prices have risen by 25–40%. Recent research shows that by comparison investments made since 1994 have yielded the following average returns: * Stock market - 18% (gross) * Turkish property - 568% (net) * Pension plans significant loss (net) * (Source: invest-in-turkey.co.uk) * In the opinion of ‘A place in the Sun’ in the October 2004 edition of their magazine, price increases in beach areas are expected to rise initially by 50% and then over the next two to three years by 100%.
Taking an average of 25% capital growth, a property purchased at GBP 60,000 with sustained growth over five years will have a market value of GBP 183,105, entailing a huge 305% return on investment.
Turkey is just entering the EU process
Turkey is currently at the very start of the long road to possible EU inclusion, meaning there are still another 5-10 years before prices rise substantially. Prior to EU membership, there are many factors yet to be discussed and many of Turkey’s issues that need to be corrected before incorporation will be seriously considered. However Turkey has some strong backers for its entry and when it does get accepted into the EU, it is reasonable to expect the price of property to rise greatly in line with a huge surge in tourism.
Many investors are purchasing in Turkey with EU inclusion as a major driving force, while looking to take advantage of the current low property prices and growing rental market.
Turkey is at the brink of a property boom
With so many indicators, many of which are outlined on this page, its clear to see that Turkey is