Turkey: Europe’s most attractive real estate market
04.07.2007
The London-based Global Property Guide (GPG), a respected consultancy group
preparing analyses and research on global property markets, determined recently
that Turkey has one of the most attractive property markets in Europe.
The GPG published its research in June to assess the property markets across the European
continent. Topping the list was Slovakia, followed by Turkey, Bulgaria, Romania and
Hungary. The recent reforms in Turkey have revitalized its economy with the property
sector in particular performing well enough to demonstrate astonishing potential.
The study noted that interest rates for home loans have started to decrease recently as a
consequence of the mortgage law. The report added that it seems likely Turkey’s position
near the head of the list will be strengthened in the coming years.
The report expressed that Istanbul and coastal areas in southern Anatolia are especially
in demand by foreign investors. The last two years witnessed a considerable flow of money
into these places, it said.
According to the report, features making Turkey one of the most alluring markets
were its stunning gross national product (GNP) growth rates over the past five years,
a reformist government and impressive housing market dynamics.
Despite no capital gains tax, prices are a little high in Istanbul and the law is mildly
pro-tenant, the report said. “However, coastal areas probably deserve a better rating
than Istanbul,” it said.
For Slovakia on the other hand, the report assessed that housing prices are inexpensive
and gross domestic product (GDP) growth has recently become strongly positive, with
no increase in inflation. “Rental income tax is low, there is no capital gains tax on
long-term property holdings and round-trip transaction costs are low,” it claimed.
GPG officials noted that British investors have leaned most toward Turkish property
markets in recent years. Particularly since the first half of this year, property investors
have put Turkey at top of their priority lists.
With respect to investment in the property market, they were inclined to invest in
countries with high growth potential like Turkey instead of “conventional markets”
which have lost most of their appealing profit margins.
Land prices in Turkey’s coastal areas are much cheaper than their counterparts in
other Mediterranean countries, but they will probably rise during Turkey’s accession
process to the European Union, the report predicted. Also suggested was that land
and houses along the shore will increase in value by 50 percent next year and by
100 percent in the middle term.
The report claimed that Turkey had enjoyed huge improvements in its tourism
infrastructure along with increased transportation alternatives, in parallel with
its extraordinary economic performance. It also advised its readers to invest in
Turkey’s tourism because Turkey has a longer summer season than its rivals in
Europe, has more suitable natural and climatic conditions, is cheaper and has
the appropriate infrastructure.
