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.

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 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.