Friday, 24 December 2010

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.

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