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.