Turkey's profile as an international destination of choice for tourists, holiday home buyers and even holiday property investors (fly-to-letters). It used to be that one of the main reasons to recommend buying property in Turkey was because EU membership was on the horizon, but since then Turkey has become a strong and powerful package all on its own, and property there is predicted and capable of growing and earning strong rental yields with or without EU membership.
We haven't really published a guide like this since things changed so drastically, and we thought that now would be a good time to do so. But why is Turkey so hot?
Economy Growing Faster than Rest of Europe
According to Turkstat data Turkish GDP grew 11.7% in the first quarter of this year compared to the same quarter of last year. This follows a growth of 6% in the final quarter of last year. Comparing this to Spain which contracted –1.3% and –3.1% respectively, the UK which shrank –0.2% and -3.1% respectively, Germany which grew 1.5% in Q1 following a –-2.2% contraction in Q4, France which grew 1.2% following a 0.5% contraction, and Italy which grew 0.5% following a 2.8% contraction, you can see why the Turkish economy is becoming such hot news.
A strong economy means a strong currency, healthy inflation (if carefully managed) and therefore growing property prices.
Strong 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. While the British travel industry is reporting a struggle, the Turkish tourism ministry shows that any drop in British visitors is being more than compensated for by growth in visitor numbers from Russia, Syria, Iran and Bulgaria
Tourism growth is one of the most important factors in the success of the Turkish property market. Again this is because most buyers are buying holiday homes and almost all of them will plan to rent it out for an additional income.
Marinas, Resorts and Success Stories
The volume of positive news relating to the overseas property market in Turkey is about the biggest in the world right now. Each week we hear of a new marina, new investments, new hotels from Hilton, Marriott, and other success stories, with very few if any negative news to temper it. For instance, there have been no reports of developments cancelled, or investors out of pocket, or certainly no more than in any market.
Thus, each week confidence in the Turkish property market grows. In a risk averse world confidence is a main driver of sales, and that is why Turkey's fortunes continue to improve.
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