Foreign investors drawn to Australian property market

Property in Australia used to be popular with British investors and also investors from New Zealand and the United States.

The economic downturn in these countries has led to a decreased number of investors, although recently the slack has been taken up by investors from the Far East, especially in certain areas of the country, which has proved very beneficial for the Australian property market as it has sheltered it from the worst of the economic downturn.

Australian property prices did decline during the worst of the downturn, but the news is getting a lot less gloomy and prices look set to rise as investment from overseas buyers returns.

The reason for this increase is because Australia is seen as a safe haven for investors who are looking for secure growth and who see huge capital gains to be made from buying into a depressed market.

The mortgage market for locals is difficult meaning that foreigners can easily outbid native buyers. Estate agents have been quick to exploit this trend with property exhibitions being arranged in major Asian cities.

There is little doubt that there are property hotspots around the country, especially in major cities where substantial investments into infrastructure are taking place.

The majority of the population live in the cities, and the capital of Perth is set to expand as massive construction projects are planned for this area, and also for Adelaide and other regional centres.

Foreign investment looks set to increase and the possibility of good returns looks set to continue especially while the more traditional markets of Europe and the United States remain in a state of flux.

Turkey to be Overseas Property Hotspot in 2011

Write About Property’s Liam Bailey has predicted that Turkey property will be the hottest overseas property investment in 2011. Bailey pointed out his surprise that he would do so, having been a staunch member of the “Turkey-needs-EU-membership” brigade until this year.

Bailey cited the excellent fiscal management by the AK party, which has focussed on paying down public debt even while its neighbours and competitors (Greece, Portugal, Spain) were running up huge tabs. On top of that, the banking reforms made after the Turkish financial crisis in 2001 left them able to withstand the crisis.

This left Turkey in a strong position when the crisis struck, because liquidity was high, and it was also able to lower interest rates as a measure of budgetary management rather than purely a alarmist way of fighting of the crisis. This calm, measured response increased the confidence of investors,

But, said Bailey, "what really sums up present day Turkey vis-a-vis worthiness as a property investment destination, with or without EU accession, is the great irony of Turkey ending its reliance on IMF assistance less than 1 year before Greece and Ireland would need such assistance.

"The balance of stability, high growth, high liquidity, low property prices and low interest rates is sure to make Turkey property a favourite with investors in 2011," he said.

Bailey said in other statements that Istanbul property was one of the top choices with pure investors, which are becoming more common in the Turkish property market, on top of the already strong holiday property market.

French Alps Just Got Even Better for Skiers

The French Alps have always been a popular tourist destination, especially for the ski season. More and more Britons are choosing to ski at least once a year, and many will jump at the chance to go skiing over a long weekend, especially with new flights from London City airport to Chambery giving them extra flexibility.

Chambery airport offers easy access to such well-known resorts as Val d’Isere and Tignes. It is estimated that over half a million people from Britain already own property in this area which is still ripe for development. Just an hour from Chambery airport is the village of Saint-Martin-de –Belleville which is part of the Three Valleys area. This is in one of the largest linked ski areas in the world as it has over 600 km of ski slopes and 200 ski lifts.

However tourist accommodation here is still at a bit of a premium with only two and a half thousand beds available which makes it an excellent place in which to own a second home. You can buy reasonably priced one and two-bedroom apartments which are fully furnished and have access to an indoor swimming pool, spa and gym, and they are located at the bottom of the slopes. Far more people choose to rent an apartment when they go skiing than to stay in a hotel giving owners excellent returns on their investment.

These types of apartments will bring in rental year round as during the summer months it is a popular holiday destination, but there is no doubt that it is during the winter months when the highest rental returns will be guaranteed, with the added bonus for owners of being able to leave work on a Friday only to be on the slopes a couple of hours later.

Costa Rica Setting out its Stall to Attract Foreign Investment

The predictions are in for a 6% growth in the Costa Rican economy next year, amid a determination by the government to cut through red tape and spend heavily on turning potential growth into sustainable growth with investment in infrastructure and socio-economic development projects, including superhighways, other construction and pro-growth incentive packages.

Costa Rica is very much committed to enticing investment and business from abroad as well, in fact so much so that China has invested massively in developing the Costa Rican infrastructure as it sees the Latin American country becoming one of its main trading partners.

Costa Rica also has a massively growing tourism sector. According to official figures the sector has been growing at 8% per year for the last 10 years, and recently it has become a massive hit with the growing wave of eco-tourists, which looks set to accelerate growth further still.

The country has two major international airports, and the completion of new motorways means it now takes just one hour to get from the capital city of San Jose to the town of Jaco on the coast. English is widely spoken in this country making property transactions much easier to understand. These factors will continue to increase the number of visitors and the need for accommodation.

Foreigners are also, not only allowed but encouraged to buy property in Costa Rica, where they enjoy the same legal protection and rights as Costa Rican citizens. Another incentive is the lack of effect from the financial crisis felt in Costa Rica, due to the fact that there was no indulgence in the sub-prime game of Russian Roulette that western banks played and lost.

That said: property prices in Costa Rica did fall slightly, but this was as a result of a drop in buyers from the US and Canada as fear set in into 2009, but now fear is subsiding the buyers are returning.

Investment Growing in London Property Market

Last month the London area experienced an increase in property investment activity after a long five months of stagnation. Perhaps this is the beginning of a renewed interest in foreigners seeking to make real estate investments, which would make the owners of luxurious residential properties very happy.

It seems that Britain’s residential property market is a booming market right now. With countries such as Greece, Ireland, Portugal, and Eastern Europe experiencing a debt crisis, investors are eyeing London and seem to have increased confidence in the investment potential and significant rate of return of British properties.

According to Knight Frank, November saw a greater demand for luxury property but the amount of properties decreased, creating a competitive edge among real estate investors. It seems that now is the time to get an affordable investment.

A 9 percent increase in residential property values increased in November for homes that cost one million pounds or more. Growth has been evident all year with an 11 percent increase in luxury property prices, tempting investors to capitalize on the stable and growing property market.

It has been reported that there was a 23 percent increase in the amount of continental Europeans who were interested in buying residential properties in London since last year. Out of all the purchases in Central London, 60 percent of the buyers were foreign investors. With prices remaining at 14 percent lower than the last time they peaked before the financial crisis, it is no surprise that overseas investment in the London area is so popular this year.

Economic Growth Gives Turkish Property Complete Investment Package

The Turkish government needs to increase its growth forecast after an 18.9% increase in industrial production in October, came the calls from Ali Babacan the Economy Minister.

“Industrial output increased by 9.8 percent in October. The recovery in Turkish industry started in October 2009, and now we see a significant increase in the industrial production index. This shows that we, as the government, need to revise year-end growth expectations upwards,” he said.

After a reminder that the Turkish economy grew 11% in the first half of 2010 Babacan went on to say:

“The European Union, the International Monetary Fund [IMF] and the Organization for Economic Cooperation and Development [OECD] indicate their year-end growth rate expectations for Turkey as 7.5, 7.8 and 8.2 percent, respectively. This shows that Turkey will be the fastest growing nation in Europe; both this year and next year. Turkey also has the lowest public debt to national income ratio in Europe.”

According to Aydin Cakir, director of Antalya based Turkish property agent New Home in Turkey, the economic growth adds another string to Turkey’s bow, making it even more attractive to overseas property buyers.

“While pure residential investment is growing, most who consider investing in Turkey property are looking at the holiday lettings potential. This class of investors is told to look for accessibility, a long season and a strong infrastructure on and off season. Turkey’s top destinations have always offered these things in abundance, and recently the number of flights is continuously increasing,” he said.

“A strong and stable economy is also something to be looking for, and while Turkey’s economy grew strongly during the boom, EU membership was hoped for to aid stability. But now, the reforms Turkey has made in aiming for EU membership have paid off in making it one of the strongest and most stable economies in Europe. We are predicting sales of property in Turkey to soar in 2011.

UK Housing Market Bottoming Out???

Oh my god, I thought I had seen it all in the press coverage of the UK housing market boom bust boom bust, but I have been proven wrong yet again.

In the This is Money publication one Adrian Lowery writes:

"House prices fell 0.7% in the three months to November compared to the same period last year, figures revealed today - the first fall on that measure since November last year. But Halifax also said prices dipped just 0.1% last month, encouraging hopes that the housing market is bottoming out."

Bottoming OUT??? How can a market that has only just started a fresh round of falls be bottoming out?

UK house prices fell sharply in 2008, but started rising in March 2009. In March 2009, after many months of falling prices totalling a decline of between 10% and 20% depending on the index, claims that the rises showed the market was bottoming out were at least plausible it not particularly well founded.

Well founded or not, fuelled by weak supply as people kept their houses off the market rather than pay the £100 required to get a HIP rise UK house prices did, and until August this year they did, again depending on the index. So now, with some indexes only registering falls for one or two months we can't say bottom out? Even if the minor falls recorded by the Halifax are the last falls we see they would only be showing that the market is levelling off, not bottoming out.

Maybe I am being a bit harsh, but I wish writers would engage their reason operators before opening their ledger.

South Africa Highlighted for Investment Potential

The investment opportunities in the Cape region of South Africa has been growing and is expected to be a prime area for foreign investors to take advantage of this potentially profitable season.

Part of the confidence and stability has come from the recent football World Cup which brought a good number of visitors to the area. Director of Ronnie Matthew Estates, Audrey Matthews, states that property along the Atlantic coastline have been stable despite falling prices around the world.

The coastal area is a beautiful place to live with its breathtaking sea views and close proximity to the beaches. It is a well sought after area to reside, especially the Atlantic Seaboard area. The beauty is hard to match with the view of the Twelve Apostle mountains against the magnificent ocean. The potential of long term investment opportunities is favorable as this coastal property becomes more and more popular.

Investors are doing their homework by taking the time to research this area and compare it to other possible foreign investment areas and have found out that the return on long term investment is comparable with other hot property markets around the world.

Cape Town is becoming more and more a choice for retirement and holiday homes, as well as a choice location for tourists. With the economic growth predicted to remain steady for the next ten years, it is anticipated that the property market will increase as well, inviting foreign investors to sow into this beautiful area

Turkish Developer 1 Billion IPO Shows Strength of Turkish Market

Turkish developer Emlak Konut is currently in the process of selling off a 25% stake in the company, in the form of 625 million shares priced between 1.60 and 2.15 liras – up to 70% is expected to be sold to foreigners. The sale is expected to raise over 1.3 billion Turkish liras.

This is the 6th IPO by Turkish real estate companies this year, and now 19 developers are operating on the Istanbul Stock Exchange. With interests rates so low and the economy one of the fastest growing in Europe, the IPOs are unsurprisingly doing very well indeed. In fact, according to the Turkish Capital Markets board the IPOs not counting that of Emlak Konut are worth over 600million liras combined.

But it is not just the IPOs that are doing well, in fact, the IPOs are the direct result of massive growth in the wider property market. With the aforementioned interest rates at record lows and exceptional growth in the economy, demand for housing in Turkey is growing massively.

Owned by government housing authority Toki, Emlak Konut was in an excellent position to capitalise on that growth. The company buys land from government institutions and then hires contractors to construct housing compounds.  The revenue that is brought in is divided between the parties.

So far this year the firm has constructed 350,000 homes and has contracts out for a further 100,000. The money raised in the IPO is to be used for projects and is part of a 6 billion fundraising effort.

Now is the Time to Invest in Overseas Property

If you’re interested in purchasing real estate around the world, now is the time to do it.  House prices have been sinking for quite awhile, and though that is not good for sellers, it is good news for buyers interested in committing to a sound investment over the next ten or more years.

According to Global Property Guide (globalpropertyguide.com), there has been a 15 to 18 % drop in house prices in the UK, which raises the eyebrows of potential foreign and at home investors.

Nick Barnes, who is the head of international research at Knight Frank, states that now is the time for those interested in buying their dream home in their dream location.  In some highly sought after locations, house prices have decreased up to 40%. 

The consensus is that despite falling prices now, investors are optimistic that the property market value of homes will make a steady increase over the next ten to fifteen years. 

Some of the hot spots for potential purchases are France, Spain, and Italy.
In France, the hot spots are Normandy, Brittany, the Dordogne, and the Cote d’Azur.  A 7.5% drop in house prices last year makes France a great choice for many British buyers overseas.

According to Mark Stucklin, head of Spanishpropertyinsight.com, house prices in Spain have dropped at least 20%, making it a prime time to look for investment opportunities.  Many newly built properties, even on the beach, sit empty just waiting for occupants.  Some prices have been slashed up to 40% in attempts to sell.

Italy is seeing price cuts as well.  Tuscany is a favored vacation and living area and prices have not dropped dramatically, but they have decreased enough to take notice.  Northern Tuscany, the Lakes region, and Venice have all seen prices cut up to about 20%.

Turkish Property: a Look Back at the Last Couple of Years

Many people expected a severe downturn in the the Turkish property market in 2009, and who could blame them? Turkish property is fuelled by tourism, and tourism was dropping drastically as we ended 2008 with predictions that 2009 would be a very bad year indeed for global tourism. The fear was realised, but fears over the Turkish property market in 2009 were most certainly not.

This is mainly because the UK fell into the crisis faster and harder than the EU, and as a result the Euro skyrocketed against the British pound. This led to more and more Brits (and those with another currency the Euro was soaring against) looking outside the eurozone for cheaper and/or better value for money holidays, with more spending liras for their pounds.

This caused what would have been a big fall in tourism and British visitor numbers to be a slight, tiny drop in British visitors, and in overall visitor numbers as well. In Turkey it is a common saying that the tourists of today are the holiday home buyers of tomorrow, and the benefits of this are being felt this year -- especially because those forced to look outside the eurozone were mostly discovering Turkey for the first time.

We can see the benefits of this in the May report from overseas mortgage provider Conti, which said it gave twice the quotes for Turkish mortgages this May as it did last year.

Since then we have heard reports of similar increases in demand from other sources, most of which state that it is more investors that are pushing up the overall numbers, when combined with the core holiday home buyers.

"The reasons for this [increase in the number of investors] are the fact that the Turkish economy is growing much faster than that of the EU, which is also embroiled in a sovereign debt crisis; a sovereign debt crisis that has eradicated much of the competition to Turkish property, including Spain, Greece, Italy and Portugal. On top of that Turkey has emerged from the recession as one of the fastest growing, most fiscally stable countries in the world," said Aydin Cakir, director of New Home in Turkey.

Realtor.com Goes International

Realtor.com, the US' largest property portal run by the National Association of Realtors is expanding into the world of international property, with translation services and international listings.

The portal currently features US property only, but it is already visited by 575,000 international users ever month, according to its data. It hopes to expand on this coverage of its clients US properties, and will also carry international listings as well.

"Realtor.com will expand the exposure of U.S. real estate listings to global markets and add international listings," said NAR President Ron Phipps, broker-president of Phipps Realty in Warwick, R.I.

"While all real estate in the U.S. is local, the same is not true for property owners. The U.S. continues to be a top destination for international buyers from all over the world. Foreign buyers understand the value of owning a home in this country and can rely on Realtors(R) to help guide them through the process of buying property in the U.S. With expertise, knowledge and experience, Realtors(R) have a global perspective, reflecting the increasing importance of foreign buyers to U.S. home sellers," Phipps said.

Realtor.com is a collaboration with Move Inc, which brings the internet technology know how to the NAR's industry clout to make a US only portal the most powerful property website in the world. Now that it will cover the world, one would assume it to become the most powerful overseas property portal, but this is far from being a given.

Rightmove is the largest UK property portal, and the presence of its overseas division is huge in the world of overseas property, but not the biggest. Although the fact that it is inextricably linked to the main rightmove site (same domain means no Alexa etc) we can see from the search results that there are more prominent sites in the overseas arena.

There is a lot to be said for sticking to your niche and ensuring your continued domination therein. Sometimes branching out works out tremendously, other times not so much. Time will tell which of these is true in the case of Realtor.com.

32,000 Brits Own Property in Turkey

32,000 British people own property in Turkey. Fact. Collectively they own 6 million square meters of Turkish land. Fact.

These figures are not an estimate, they are the official figures recently released by the Turkish General Directorate of Land Registry.

The data shows that the British are by far the biggest overseas buyers of Turkish property. According to the figures foreign buyers own 65 million square meters of Turkish land, with 6 million square meters Brits own almost twice the amount of land that Germans -- the second biggest owners -- do at 3.5 million square meters. Surprisingly Greeks are the next biggest owners with 3 million square meters.

Note the lack of Russian buyers in the top 3. A recent chart by the largest Russian language overseas property portal showed that Turkish property is third most popular with Russian buyers, which are currently millions strong.

According to New Home in Turkey the number of Russian buyers as well as those from eastern European and Baltic states are growing, but it will be maybe 5 - 10 years before they overtake Brits and Germans in the Turkish market, if ever.

Director of the firm Aydin Cakir said:

"Since the Turkish property market opened to foreign buyers in 2002, and then further in 2005, British buyers have always dominated the market. While Germans are the largest tourism market, Brits are more prolific buyers of holiday homes, with a much larger proportion of tourists buying property in a given country. Russian numbers are growing, but it will be at least 5-10 years before they overtake British and German buyers, and they may never do so."

New Istanbul Airport to Increase Accessibility of Turkish Property Markets

The Silviri District, a suburban area in western Istanbul is to become home to the city’s third airport, after the airport was green lighted by mayor Kadir Topbas. The airport, which is being built because of massive growth in passenger numbers to the city’s existing airports, is to be the biggest of them all. According to the mayor the new airport will be several times larger than Istanbul Ataturk.

The mayor also revealed plans for further expansions in the city’s airport capacity, via expansions at the existing airports, he said:

"These plans have been made in cooperation with the Transportation Ministry. They want to increase the capacity of the current airports in a short period of time. There is an additional runway at Sabiha Gökçen. We are considering building another runway at Ataturk Airport. But we have added a third airport to our plans."

Istanbul Ataturk, the city’s main airport received some 30 million passengers in 2009. It also saw passenger numbers increase 13% year on year in the first four months of 2010.

Meanwhile, smaller airport Sabiha Gökçen, home to the majority of Istanbul’s budget capacity is also seeing passenger numbers grow rapidly; it is expected to receive in excess of 11 million passengers this year.

The new airport has the potential not only to boost the Istanbul property market, but the Turkey property market as a whole. For many tourists around the world, connecting flights are a necessary evil, and for others a significant saving, the new airport will therefor increase accessibility of property markets across Turkey.

Bodrum to Construct Replica of King Mausolus’ Mausoleum

King Mausolus’ Mausoleum, one of the Seven Wonders of the Ancient World is to be rebuilt in Bodrum.

Bodrum Mayor Mazlum Agan, who is currently running for his third term, has revealed plans to construct a model replica of Mausoleum near the 2,500 year old ancient theatre in Bodrum. What's left of the real Mausoleum is currently on display in the British Museum.

"The place of King Mausolus’ Mausoleum is being visited by thousands of tourists every year. However, they can only see remains of the mausoleum. For that reason, we will build a model mausoleum on a one-to-one scale of the original mausoleum."

The Mausoleum of King Mausolus is an enormous (50m tall) white marble tomb, with iconic columns encapsulated by a stepped pyramid roof, and adorned by a four-horse-drawn carriage on top. The tomb came to be known as the finest tomb in the world.

The tomb was ordered by Mausolus' wife Queen Artemisia when her husband died in 353 BC. Statues of Artemisia and Mausolus lie inside the carriage.

The original site of the tomb now has gardens, with an active archaeological dig to the right, and a covered arcade to the left. The arcade contains a copy of the famous frieze mainly recovered from the castle walls. The original was sent to the British Museum in London in 1846. Four original fragments were discovered more recently.

The replica of the Mausoleum can't really be anything but spectacular, and it will no doubt be massively popular with the thousands of tourists who visit the site of the Mausoleum each year. This could also draw attention to Bodrum's rich history and make it more popular with tourists, and Bodrum property more popular with holiday home buyers.

Izmir to Istanbul Superhighway Breaks Ground

The massive highway linking Izmir and Istanbul, which is one of the largest infrastructure development projects in Europe broke ground this Thursday,

"We are launching today one of the biggest projects in the history of our republic," said Turkish Prime Minister Recep Tayyip Erdogan at the ceremony.

The project includes a suspension bridge over the gulf of Izmir, which will be one of the biggest such bridges in Europe.

It currently takes 8 hours to travel between Istanbul and Izmir, this will be cut to less than 4 hours, and the distance will also be cut by 140k. This will be massively beneficial to the local economy.

Construction of the 11 billion TYR superhighway alone will create 60,000 jobs (10,000 directly and 50,000 indirectly), and the benefits will continue after its completion in 2017, as businesses can transport goods more quickly and cost effectively to the trading hub and ports of Istanbul.

Istanbul is the cultural centre of Turkey, and one of its biggest, most populous, and fastest growing cities. The benefit of transport links, and the ability to commute to find work in the city grows every day.

The highway will no doubt lead to increasing migration to Istanbul from rural areas, and this could easily push up the value of Istanbul property.

Of course the project alone will no doubt boost sales of property in Turkey, because it, along with many other projects announced and currently underway, shows that the Turkish government is committed, and investing heavily to improve the infrastructure.

Alanya Property Dominating Sales to Foreigners

Almost 25% of all Turkish properties sold to foreigners in the last five years have been in Alanya, according to local paper Alanya Adres.

Quoting figures from the Turkish land registry, the paper revealed that of 88,900 properties purchased by 100,623 foreigners from 44 countries in the last five years, some 17,000 of them were in Alanya.

Brits and Germans were most prolific, with the British buying most. According to the data some 30,710 Brits bought 21,321 properties in Turkey in the last 5 years, while 21.678 Germans purchased 26.365 properties.

It is always great to get hold of data like this from Turkey. The last data we saw came in 2006, when we learned that foreigners had purchased 5,556 units in Antalya Province (of which Alanya belongs) as of June 1st.

According to another recent report from the Turkish General Directorate of Land Registry, Brits now own some 6 million square meters of Turkish land, totalling 32,000 properties.

Alanya is home to the largest population of British expats, and surprisingly it is a very immature market with respect exposure to the overseas property market.

This is because Alanya is 90 minutes away from the Antalya international airport. Those who move to Turkey needn't care about such a small distance from the airport, but for those only able to spend short amounts of time in their holiday home, this would make them consider destinations much closer to an international airport.

Now that the airport at Gazipasa, just outside Alanya has opened and is currently being expanded to accept international flights, it is expected that developers will increase their focus on developing Alanya to the same level as many other Turkish towns.

Given the clear pulling power of Alanya property clear pulling power as displayed above, this is a very exciting time indeed for the town.

Thanks to New Home in Turkey for bringing this report to our attention.

Europe Needs Turkey as Much as Turkey Needs Europe Says Wulff

Europe "needs Turkey as much as Turkey needs Europe."

Not a statement you'd expect from the President of Germany, given the country's staunch and long standing objection to Turkey's accession into the European Union, but that is exactly what he said.

"We can complement each other in many ways and collaborate for the solution of problems in the Middle East Caucasus and the Balkans," said Wulff, Speaking at a dinner hosted by Turkish President Abdullah Gul in his honour at the Dolmabahce Palace in Istanbul.

He also said:

"Turkey is an important partner for Germany, one with self confidence. However there is yet much we can and must do to enhance the mutual understanding. Building the bridges and promoting the dialogue we aspire, through projects within the scope of the Ernst Reuter Initiative, is my personal desire and our common goal."

"Turkey, with its growing weight in the world, is a very important partner for us in climate change policies, in counter-terrorism, and finance market regulation. Therefore, I shall work within my full capacity to enhance German-Turkish partnership and brotherhood," said Wulff.

The statements came just a few days after a partial visa-free deal between Turkey and Portugal was announced. The deal will cover only citizens that hold a special passport, and will only allow travel for up to 90 days every six months. It still has to be ratified by parliaments on both sides.

These can only be called significant steps in Turkey's process of joining the EU. We have written many times on this blog that EU accession has become less necessary for Turkey in recent times, but we also agree with an article in The economist saying that while EU entry may be a long, long way off, aspiring and reforming towards it are good for Turkey and should continue.

EU Accession No Longer Vital to Turkey’s Interests

This week David Cameron called Turkey the BRIC of Europe, but still we expect no progress on the EU issue. This week French foreign minister Bernard Koucher pledged France’s support for Turkey, but still we should expect no progress on the EU issue. The EU will publish a review of Turkey’s progess towards joining the EU, we expect it to show little progress on the EU issue. Until France, Germany and others remove their block, which won’t happen until Turkey opens its ports to Greece, which won’t happen until and so on and so forth – suffice to say we are firmly in the land of deadlock.

But the fact is the Turkish economy grew by more than 10% in the first half of this year, and is predicted to grow 7.5% for the year as a whole, that is growth that Europe’s developed economies like France and Germany can only dream of.

According to a report by HSBC this week emerging markets will be on top of the world table of purchasing power parity within three years; three years during which they will drive the global economic recovery. Turkey was mentioned in the report as one of the biggest drivers of growth. Investment in Turkey is increasing at a rapid rate, including property investment.

EU accession is no longer vital to Turkey’s interests.

This is a common sentiment, in a Hurriyet Daily News article this week titled Forget the EU, RICHARD REID wrote:

In any case, Europe’s closed door may be irrelevant to Turkey’s general prospects. At the moment the country’s global image is one of rude health. Admiring eyebrows are being raised in the capitals that count. Turkey is no longer a minor player. Its momentum should before long carry it to a point where Europeans will be the suitors. And then Turkey can ask them to wait.

EU membership is “no longer such a big deal” for Turkey says Tolga OZCAN, director of Antalya real estate agent New Home in Turkey.

“The Turkish economy enjoyed double-digit growth in both the first and second quarters, with 11.7% growth in the first quarter and 10.3% in the second quarter, compared to growth of 0.7% and 2% respectively for the EU27,” he said. “During this time the biggest growth was recorded in Slovakia with 4.6% in Q1 and 5% in Q2.”

He continued: “On top of that the European banking infrastructure is in disarray, with severe doubts over exactly what levels of bad loans still exist in Spanish, German, Irish and other banks. Compare this to Turkey’s banking system, which, heavily reformed in 2001 is in incredibly good shape.”

Turkey is the BRIC of Europe Says UK PM David Cameron

In a message sent to an important U.K.-Turkish business event organized by the Turkish-British Chamber of Commerce and Industry (TBCCI), UK Prime Minister David Cameron has reiterated the party's sentiment that Turkey is the BRIC of Europe, in reference to the so-called BRIC economies of Brazil, Russia, India and China, grouped together as the world's fastest growing emerging markets.

Turkey is the "BRIC of Europe," he said. "Everyone is talking about BRIC countries and the rapid growth in [the group’s] economies of Brazil, Russia, India, and China. We think that Turkey is a BRIC country of Europe," Cameron said.

This is at least the second time that Cameron has voiced such sentiment in relation to the Turkish economy.

One would find it hard to mount a reasonable argument against him, in fact the figures make Turkey exactly that.

According to Turkstat the Turkish economy grew 11.7% year on year in the first quarter of this year and 10.3% in the second quarter. This is compared to growth of 0.7% and 2% respectively for the EU bloc, and 4.6% and 5% respectively for Slovakia, the fastest growing economy in the EU according to Eurostat data.

The BRICs were put together in that anagram by Goldman Sachs because they were and were likely to be the fastest growing emerging economies in the world. Turkey is without doubt the fastest growing economy in Europe, which means it can be called the BRIC of Europe without too much fear. Wonder if Cameron is pulling any strings to get it into the EU?

Nah, on a serious note, Cameron said that trade between the UK and Turkey could be doubled if both sides work hard on it in the coming years.

Turkish Property 3rd Most Searched for on Russian Portal

Number 1 Russian overseas property portal has published search data revealing that Turkey is the third most popular.

Experts say that the current dominance of low budget buyers is skewing the figures but I don't buy it. The data is based on the number of searches conducted by Russians currently searching for property on the portal, therefore it is inherently an accurate measure of popularity with Russian buyers. It is also confirmed by Turkish estate agents.

"British buyers are no longer the dominant force," says Aydin Cakir, director of New Home in Turkey. "We have been seeing Russian buyers overtaking them for some time and our findings are now confirmed by the 1-property.ru."

Before the crash, there was a lot of talk about the growing number of Russian buyers, and even of them overtaking British buyers in 2008. But then, despite many predictions that Russia would avoid recession, the global downturn struck Russia, and Russian buyers dried up just as British buyers did.

Now though, the Russian rebound is gathering pace as it once again becomes one of the world's hottest emerging markets. Meanwhile Britain is struggling to grow, and stuck in the quagmire of deep austerity measures. Millions of public sector workers are fearful of their jobs, as we know millions of jobs are to go, but no one knows when, how many and in how many chops.

Alanya is the top Turkish region with Russian buyers according to the 1-property.ru data, followed by Antalya, Belek, Kemer and Kusadasi.

The Fading Importance of EU Membership Boosts Turkish Property

The international financial crisis was a mortgage and housing market crash so spectacular that it crippled economies in most countries around the world. The boom that preceded was equally spectacular; so spectacular that it made people forget the cyclical nature of economies and house prices.

The boom was fuelled by a massive increase in overseas property investment, so-called fly to let, which in turn was fuelled by the advent and growth of budget airlines. New cheap flights opened up new destinations and made them accessible to the masses.

Turkey was popular with holiday home buyers and holiday home investors, but for the pure investors fuelling the real boom something was missing. That was EU membership.

Turkey has been an official EU applicant since 2005, but France and Germany have been staunchly opposed to Turkey's entry.

Now though, Turkey is booming while the EU is withering, and this is making investors readdress their position.

In the year to end the second quarter of this year Turkish GDP grew 10.3%. The EU grew 1%.

Turkish GDP grew 11.7% in the year to end the first quarter. EU GDP grew 0.4%

Turkey's budget deficit is under 5% and many EU countries are in real trouble bringing deficits of up to and over 10% under control.

This has made Turkish property a more attractive investment than that of Greece, Italy, Portugal or Spain, take Dubai out of the equation as well and you can see why Turkish property is currently getting so much press coverage.

Turkish Property a Hands Down Winner in Buyer Confidence War

Some of you will likely have seen our latest article to be published by Buy Association, in which we lay out why no country can match Turkey on its combination of strong growth and high security and confidence, and popularity (buzz).

Sure, we have Brazil, which is also generating massive buzz, and growing massively, and China, which, is of course the fastest growing economy in the world. And while the fight is a good one on which country will see the fastest growth in rents and property prices, in terms of buyer confidence, Turkey is a hands-down winner before the gate opens.

Before the credit crunch, confidence and stability paled into insignificance as the majority of buyers chased the biggest gains to Dubai as well as far flung and exotic emerging markets, hanging the delays of due diligence to "get in quick" and be the "early bird" that catches the worm. But we all know how so many of them paid for their folly. The buyers to emerge from this are obviously paying much more attention to security, stability and only buying where they feel most confident and safe.

Not many people are inspired by a feeling of safety when hearing the word China. Its communist dictatorship government, along with its abysmal record on human rights abuses, oppression and all manner of corruption, are a massive hindrance to buyer confidence. Not to mention fear that your property could be seized and even you arrested if you do something against someone in power's interests.

For a majority-Muslim nation, the determination of Turkey's secularism is surprising. Since the coup of 1980, the country has reformed into a fully democratic secular nation. The performance of the current AK party and its history of successful reform is a great booster of confidence among foreign investors.

Brazil’s problem is its massive crime rate. Its murder rate of four times that of America puts a great dent in foreign buyers' confidence.

Turkey’s Islamic based law system is harsh, and as a result the crime rate kept low.

In fact, unemployment is Turkey’s main hindrance and even it is currently falling. Still, compared to the problems of China and Brazil, Turkey’s has a minimal impact on confidence.

Italian FM States Support for Turkish EU Accession

Italian Foreign Minister Franco Frattini has given his backing to full EU accession for Turkey, and criticised EU offers of partial membership deals.

Frattini told daily newspaper Il Giornale's politics and economy magazine Dossier Lazio that it was not right for Turkey to be offered a "privileged partnership" by some member countries instead of full membership.

Frattini went on to talk about the massive benefit that Turkey's EU accession could have on relations between the west and the Islamic world, which have fallen to tragic lows of late.

He said that as well as being seen as Islam, democracy and human rights in harmony, but that it would also be a testament to the EU's capacity to embrace different cultures.

"This is a significant historic target which we cannot give up," he said.

Staunchly supportive, Frattini was also quick to tow the party line, he said that Turkey had a long path to accession, and that currently that path did not look easy or promising. He said that Turkey's foreign policy preferences are causing doubts in some EU capitals, and urged Turkey not to give up on reforms.

Turkey should feel it has reached the finish line when it has fulfilled its present obligations, the Italian minister said, warning that it would be a grave mistake to alter the finish line.

Turkey became an official EU candidate in 2005, since then negotiations have moved at a snail's pace. Some now believe that Turkish membership is becoming as necessary for the EU as it is for Turkey, with the latter's greater growth and moves like the Nabucco pipeline.

On the flip side and for much the same reasons,EU membership has and is becoming less and less neccesary for Turkey, it would still boost the Turkey property market though.

Antalya Property Most Popular with Foreign Buyers

Antalya property is the most popular with foreign buyers of Turkish property according to a local realtor.

In a recent press release, New Home in Turkey said that Antalya is benefiting from the re-emergence of low budget buyers, who had been absent in the middle part of 2010 because things like the hung UK parliament, and austerity measures of varying degrees caused uncertainty about the future and severely dented confidence.

"We saw a return of these [low budget] buyers towards the end of 2009 and into the early part of this year, but it was fizzled out by the end of the stimulus, the EU debt crisis, the UK coalition government and other factors that dented confidence. Now there seems to be a sense that it is not going to be as bad as we thought, and buyers are returning," said Aydin Cakir, director of the firm.

Later in the release, the firm picks out Antalya, Side and Alanya as the most popular spots.

It is little wonder that property in Antalya would be the most popular, especially now that we know from many sources that low-budget buyers are indeed returning to overseas property.

It is practically an out of the box holiday home destination, in that it has everything the large majority of holiday home buyers are looking for, all right in Antalya town itself. Loads of shops selling everything you could ever need on holiday, from corner shops to supermarkets, a variety of restaurants, bars clubs, great beaches and a year round climate. To top it all of, Antalya airport is one of the best served airports in Turkey.

Turkish Property Market May Be Boosted by Removal of Visa-Restrictions with Germany

Aydin Cakir, director of Turkey based Turkish property agent New Home in Turkey has said that the removal or easing of visa-restrictions on Turkish travel could boost the Turkish property market, he said on the company’s website:

“Removal or easing of visa restrictions between Germany and Turkey may also boost the Turkish property market. Germany is Turkey’s largest tourism market, and holiday makers tend to become holiday home buyers, visa-free travel would certainly make visiting a property in Turkey easier, and therefore ownership more attractive.”

The comments came in response to the comments of Mercedes-Benz Finansman Türk General Manager Franz G. Koller, who has indicated frustration at Germany’s failure to cut red-tape on travel and investment in Turkey and Germany, which is causing German businesses to “lose ground” on Turkish investments.

Koller seemed particularly hacked off at the fact that the EU had removed visa-restrictions on travel between the EU and 3 non-candidate countries: Serbia, Macedonia and Montenegro, while Turkey, an official candidate since 2005 has been left out in the cold.

Koller’s statements come days after it was revealed that Turkey is now the fastest growing economy in the OECD and one of the fastest in the world. One of the biggest growth sectors in such a rapidly emerging market is automobile ownership, a status of rising affluence. It is certain that Mercedes Benz would very much like to be part of this growth.

Turkey Real Estate Boom on the Cards Says GPG

The well respected Global Property Guide publication has just published a detailed report into the Turkish economy and property market. In its forecast report published earlier this year Turkey was featured as a recommended investment destination because it said property is grossly undervalued.

So undervalued in fact that the publication has published a report dedicated entirely to Turkey, titled Turkey: Europe's Best Yielding Property Investment, further, it was followed up by a research article on the site titled Turkey: A Housing Boom Ready to Roll.

The report points out the excellent performance of the Erdogan government in paying down debt, reducing the deficit and inflation, which subsequently allowed them to lower interest rates (the financial crisis was only a catalyst). Lower interest rates means more confidence to borrow, increasing the mortgage market (currently only 4% of GDP much lower than EU average 50%).

Combining the low interest rates with rapid economic growth, falling unemployment and resulting increased consumer confidence and you have the perfect conditions for a Turkish real estate boom.

According to the report, is now the third most visited city in Europe after London and Paris, yet the average square metre price of property in Istanbul is much lower and therefore severely undervalued. The report puts the average price of Istanbul property at 2,386 Euros per square meters, compared to 35,658EUR in Monaco, 14,421EUR in London, 11,851EUR in Moscow, and 9,961EUR in Paris.

Yields range from moderate to good in Turkey it says, putting the range at between 5% and 6.1% on 120sqm apartments. If you want to download the 43 page report click here.

Turkish Economy Surges in First Half of Year – Upgrade Predicted

The Turkish economy grew 10.3% in the year to end the second quarter of 2010, and construction grew 21.7% during the period, according to Turkstat. The GDP growth rate for the first half of the year is now 11%, and this is matched by tourism growth in the first half of the year, according to recent data from the Tourism Ministry.

This is impressive growth, but the fact that it means that the Turkish economy grew faster than Brazil (8.8%) and the same as China (10.3%), makes it all the more impressive.

It is little wonder that Standard and Poor have announced that they will upgrade Turkey's debt rating in 12-24 months -- this would give Turkey an investment grade rating. Turkey is already the only country to have been upgraded twice during the financial crisis. S&P also predicted 8% growth for the Turkish economy this year.

Unemployment is also falling, and it is the combination of falling unemployment and economic growth that is bringing reports that the Turkish economy is now well and truly out of the woods in terms of the recession.

Unemployment fell 2.6% in May, and with that the number of jobless people in Turkey fell below 3 million for the first time since August 2007 (before the crisis struck).

With so much growth, it is certainly difficult to imagine Turkey falling backwards into recession; let's face it, it has a long way to fall. What's more Turkey hasn't gone overboard with the stimulus so there is minimal risk that revocation of the stimulus could bring trouble.

I certainly don't see anything but growth in Turkey's short term future. The International Monetary Fund is predicting 5.2% growth this year and 3.4% next year. If you ask me that will prove to be a little conservative.

Turkey Benefits from Eradication of Main Competitors

The excellent performance of the Turkish economy at present, alongside its solid fiscal status, is making the country a favourite with overseas property investors. When you compare the 11.7% growth in Turkish GDP in Q1 compared to the 1% in that of the EU, it is easy to see why. However, looking at the positive performance of Turkey is one thing, but you simply can't underestimate the importance of the eradication of its competition, due to their negative performances.

Greece

Take Greece for example. We all know that Greece is embroiled in one of the worst sovereign debt crises Europe has ever seen. Who would have believed we would have an EU country at risk of defaulting on its debts?

Worsening this still, the population has revolted against the austerity measures aimed at combating the runaway. This has disrupted tourism and led to warnings from the British Consulate and more. Them a terrorist group sprang up earlier this year threatening to target the tourism industry. There are buyers out there looking for bargains, which are still few and far between.

Cyprus

The south Cyprus title deeds debacle erupted when the world was reeling from the financial crisis. Needless to say Cyprus property sales to foreigners plummeted. Since other countries started to see recovery, North Cyprus saw court cases and foreigners losing property. Thus, sales are still struggling to recover across the country.

North Cyprus was Turkey's main competitor in terms of low property prices. So now with sales so low in Cyprus, where do you think all those low budget buyers are buying? That's right, Turkey.

Turkey Property Hotter with Removal of EU Hurdle

Some of you may have seen the article we had published recently in the Global Property Guide.

The article states 5 arguments why Turkish property is more popular as an overseas property choice now than it was during the boom, because it is now popular with investors as well as lifestyle buyers. But the main reason is not a reason per se, more the removal of a hurdle: EU Accession.

During the boom, investors looked at Turkey closely, but usually chose a country with a path to EU Accession closer to guaranteed than that of Turkey. As a result Turkey frequently lost out to countries like Albania, Montenegro and even Croatia.

But now, with Turkey’s fiscal situation, and economic growth potential far superior to that of the EU, accession to the Bloc is no longer such an investment gold star, and now Turkey is standing out as one of the best investment choices in the world.

It is widely held that the ratings agencies will soon give Turkey investment grade status, but already investors are heavily active in the country. A recent report highlighted that Turkish swaps were trading at the same price as that of Russia – swaps are what is sold as a hedge against a sovereign debt – this indicated that investors felt Turkey was as low a risk of default as Russia.

We wanted to post an expansion of this theory here in the hopes that it would spark a debate involving investors and buyers. Please leave your comment below.

Turkish Tourism Industry Wins Prestigious Award, to Boost Property Market

Turkey has been voted readers favourite by readers of the highly regarded, Condé Nast travellers magazine. Turkey was given a score of 94.81%, after readers of the magazine scored the world’s destinations on 10 criteria including value, and service. Turkey also scored highest in the world for value and range of accommodation.

“This is a testament to the massive growth in Turkey’s popularity as a tourist destination,” said Aydin Cakir, director of New Home in Turkey. “Turkey is a great place, with a growing infrastructure, low living costs, and friendly environment. Thus, it is unsurprising that more tourists would lead to Turkey winning awards such as the Condé Nast.”

The Turkish tourism has recently said that tourism to Turkey grew by over 9% year on year in the first half of this year. Tourism from Britain is up 15% in the first seven months of this year compared to last year according to the Turkish tourism office in the UK. ABTA recently said that Turkish tourism has been growing at 20-25% per year for the last few years.

With such growth, many have been waiting for an award like this; they believed it would only be a matter of time.

The award is also good news for those involved in the Turkish property market. This is because it will increase Turkey’s exposure to new tourists, who will see it as more worthy of giving it a try. This will boost rental yields, make Turkish property more attractive to investors, and bring more people to fall in love with Turkey and buy holiday homes.

There will also be the indirect effect of increasing economic, which could push up property values.

Turkey Property Hotspots Part V: Side

Side is one of the ultimate property hotspots in Turkey, not least because it has everything an investor and holiday home investors look for when choosing where to buy.

Sun (300 days), Sea, a great harbour, an array of shops, loads of things to see and do, and all just £55km from the airport at Antalya, one of the best served and fastest growing airports in Turkey.

Side has a rich history dating back well before Christ to the era of Alexander the Great, who is mentioned as a marker of the town's history, because his conquering of the town marks one of the earliest entries in the town's history.

Alexander the Great's rule started a series of conquests and different rulers of the town, many of which left a stamp on the town, some of which can still be seen today. These sites, including a Roman-style Amphitheatre -- which is in good condition -- make great tourist attractions.

Like most Turkish resort towns, property in Side is cheap, and offers fantastic value for money when viewed in terms of quality and location. You can't get a property in a Mediterranean town for anywhere near the low cost of property in Side, let alone a town with as much potential as Side has.

So, it is little wonder that Side is one of Turkey's top tourist towns, and one of the greatest property hotspots as well.

European Property Investment: Hard to Find Turkey’s Equal

When you look at the growth of the Turkish economy, the profits of Turkish banks and just the volume of positive information coming out of Turkey right now, it is hard to find its equal, or even a close competitor in Europe.

Turkey is an emerging market, and so any investment in the country must still be considered risky, but according to experts it is very close to receiving an investment grade rating from ratings agencies.

With emerging market investments risk can come from the banking system, the currency, the political system. But with Turkey all those things are creating minimal risk now, and in the foreseeable future. Both the banking system and the currency/foreign reserves system were overhauled and received a serious of reforms in the 2001 Turkish financial crisis, and the success of these reforms is now proven in the way Turkish banks have barely been affected and recorded strong profits throughout the Turkish recession in 2009, fuelling the way the Turkish economy has rebounded from said recession.

Don’t get me wrong, unemployment is still a massive problem for Turkey, and it still has a long way to go before it can call itself a developed economy, but for investors looking for growth in Europe in the next 5 years, it is hard to see anywhere bringing anywhere near the returns Turkey looks capable of.

What’s more the Turkish government seems determined to re-invest in future growth. Recent announcements have included a 400 million lira investment to make Izmir a yachting centre within Turkey and Europe. The announcement was made at the opening of the 15 million euro Cesme marina, and the investment will start with the expansion of Izmir port. Just some of the aforementioned positive news coming out of Turkey.

Turkey Property Hotspots Part IV: Dalaman

Dalaman is one of the ultimate Turkey property hotspots, well it has to be: Dalaman is the reason why Turkey overtook Spain as the top tourism destination for British travellers in 2008.

What? I hear you ask. No, of course it didn’t really. See what happened was (read in Devonshire accent and sound like British hit comedian Jethro), a member of ABTA published the top 10 destinations for British travellers in 2008, and Dalaman was in first place. Because of this and the accompanying press reports, the mistake was made that Turkey was the top destination for British travellers.

I found this out when I called ABTA in late 2009 after the report remerged. ABTA confirmed that British visitors to Turkey in 2008 was about 2 million, while Spain received 11 million visitors. They did say that Spain was now stagnant while Turkey was growing at 20-25 percent per year.

Anyway, digression over the important thing here is that Dalaman was the most popular destination for British travellers in 2008, if anyone has figures for 2009 we’d love to see them. There is however no indication that it would have shrunk, while the increase in new flights to Dalaman international airport is an indication that it would have grown.

Being a tourism driven market, this is a massive highlighter to the waves of young investors and holiday home investors to choose Dalaman property to make their Turkish property investment.

Turkey Property Hotspots Part III: Fethiye

Fethiye is our favourite Turkish property hotspot, and in our opinion will be one of the most popular places for low budget foreigners to buy property in the coming 5 years.

Fethiye has everything that savvy buyers are told to look for when buying overseas property:

Long Season: Fethiye enjoys over 300 days of sunshine per year, with very little rain (basically no rain during the summer, and very little in other seasons except winter).

Shops: Fethiye has all the shops that a holidaymaker could possibly need, including supermarkets, pharmacists etc. The majority of shops are open all year round

Dining Options: Fethiye has a wide variety of restaurants, from small “British-style” cafes, to crème-de-la-crème restaurants offering fine cuisine from around the world. Again, most of the restaurants are also open all year round.

Accessibility: Fethiye is just 30 miles from Dalaman international airport, which is well served by flights from the UK and other European destinations.

Beaches + Activities: Fethiye has great beaches and many activities for tourists to enjoy, including horse-riding and charter boat trips from the harbour, on top of the traditional pastimes like Tennis etc.

All these things make Fethiye very attractive to tourists, which, along with the low prices, makes Fethiye property to holiday home buyers. The package, as well as rising tourism also makes Fethiye attractive to investors.

But property in Fethiye has an ace up its sleeve: it is less than half an hour away from Olu Deniz, the most beautiful bay in Turkey, and arguably one of the world’s most beautiful coastal spots. Olu Deniz is protected and finding property for sale there is very difficult, thus Fethiye property is purchased by those wanting a home in Fethiye, and those wanting somewhere close to Olu Deniz.

Turkish Property Hotspots Part II: Antalya

Antalya is a place near-certain to become an overseas property hotspot in the coming months and years.

It has everything that property buyers are looking for in a holiday home investment: plenty of shops, a wide variety of dining options, great beaches, a long hot and dry season and great accessibility from its own international airport.

Antalya, like most of Turkey also offers among the lowest property prices in the world, and this is one of the main reasons why Antalya seems destined to become a hotspot; because of the potential for an increase in low-budget buyers.

Europe is currently struggling to recover from one of the worst recessions the world has ever seen, and almost everyone is feeling the pinch. Thus, more and more people will be looking for cheaper places to enjoy holidays, and this will highlight Turkey and places like Antalya no end.

Antalya is one of Turkey's upcoming Mediterranean regions, and so, as well as putting you in a top class European resort, it also puts you in range of many more, including Side, which is famous for its rich history dating back to Alexander the Great.

Even with all this going for it, you can still buy studio apartments in Antalya from as little as 30,000 euros, and 2 bedroom apartments a little inland for 33,000 euros.

Because Antalya is hot news at the moment, off plan development is massive, and there are many opportunities to buy off plan properties at prices even lower than normal.

Turkish Property Hotspots Part I: Alanya

I have chosen to cover Alanya first because it isn’t a hotspot yet, but boy is it looking likely to be.

Alanya has the largest population of British expatriates in the world, where they are joined by fellow expatriates from nations throughout Europe and the World, and tourists from the four corners of Turkey and other short-haul destinations.

The key words in that paragraph are: expatriates, and short-haul. That is because the nearest airport to Alanya was Antalya over an hour away. While Antalya airport is one of the best served in Turkey, no one wants to travel for an hour on foreign public transport or a hire car, in the searing heat, (and for those in hire cars unknown roads) after travelling several hours on a plane (4 approx depending on which UK airport you depart from).

Thus, those who are within short-haul flight distance, and expats have flocked to the undiscovered beauty of Alanya. Well, guess what, it is about to be discovered. The long-controversial Gazipasa airport just a few minutes from Alanya began serving the domestic route to and from Istanbul last month.

Many people thought that the airport would never actually open, even when current operators TAV started running test flights still people were dubious. Now that the airport is receiving and sending passengers, we can believe a lot more readily the statements from TAV that international flights will follow next year, once the runway expansion work is completed.

Alanya with its own international airport will be an almost unstoppable force. I would even go so far as to predict its being one of the great success stories of the 2011/12 fiscal year and beyond.

Watch this space for news on new Alanya property developments, new flights, and much more as the market hots up.

3 Reasons People are Buying Property in Turkey

Property in Turkey is big news at the moment. We are seeing more and more websites coming up offering Turkish property, and more and more of the investment property specialists (those surviving) offering Turkish property. Here are 3 reasons why Turkish property is so hot right now.

1: Rapid Economic Growth

Turkish GDP grew 11.7% in the first quarter of this year compared to the same quarter of last year, following a year on year growth of 6% in Q4 2009, according to data from the Turkish statistical body Turkstat.

Yes, it is true that GDP shrunk 14% in Q1 last year, but in a Europe when none of the big hitters -- Spain, Italy, France, Germany and the UK – grew by more than 2%, having contracted in Q4 it is easy to see why Turkey is making the headlines. Especially when its growth is up there with that of China.

Property prices will grow naturally during times of economic growth, as inflation pushes up labour and material costs.

2: Continued Tourism Growth

The latest data on tourism from the tourism ministry shows that Turkish tourism grew 9.6% in the first half of this year, compared to the first half of last year. The growth is thanks in large part to growth in visitors from Russia, Bulgaria, Syria and Iran, filling a drop from Britain.

The overseas property segment of the Turkish property market is very much tourism-dependant because those buying will usually plan to rent out their property for an additional income.

3: Growing Confidence

Right now, you can hardly pass a week without hearing good news from Turkey, new marinas,, new investments, new resorts, new hotels from the big chains and new flights. What’s more there is very little in the way of negative news – like developments cancelled, or investors out of pocket -- to temper the positive. Confidence is a very big factor in overseas property purchases at the minute, and all this news continues to build confidence in the Turkish market, and will continue to drive buyers.