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.