Economic Factors

Topics: Turkey, Istanbul, Economics Pages: 8 (2658 words) Published: December 5, 2010
Turkey Economic Factors
Turkey has many market drivers that make it an ideal location currently for property investment. Here we look at some of the reasons why Turkey is one of the world’s hottest investment property locations.

* Excellent capital growth projections of around 25% per annum Land prices in Turkey have risen in recent years and, in many cases, doubled. In 2005 to 2006, property prices have risen by 25–40%. Recent research shows that by comparison investments made since 1994 have yielded the following average returns: * Stock market - 18% (gross)

* Turkish property - 568% (net)
* Pension plans significant loss (net)
* (Source:
* In the opinion of ‘A place in the Sun’ in the October 2004 edition of their magazine, price increases in beach areas are expected to rise initially by 50% and then over the next two to three years by 100%. Taking an average of 25% capital growth, a property purchased at GBP 60,000 with sustained growth over five years will have a market value of GBP 183,105, entailing a huge 305% return on investment. Turkey is just entering the EU process

Turkey is currently at the very start of the long road to possible EU inclusion, meaning there are still another 5-10 years before prices rise substantially. Prior to EU membership, there are many factors yet to be discussed and many of Turkey’s issues that need to be corrected before incorporation will be seriously considered. However Turkey has some strong backers for its entry and when it does get accepted into the EU, it is reasonable to expect the price of property to rise greatly in line with a huge surge in tourism. Many investors are purchasing in Turkey with EU inclusion as a major driving force, while looking to take advantage of the current low property prices and growing rental market. Turkey is at the brink of a property boom

With so many indicators, many of which are outlined on this page, its clear to see that Turkey is at the beginning of a "property boom". A boom period generally indicates a time when demand for property outstrips supply. This is currently the situation in Turkey especially in the major investment areas such as Bodrum, Istanbul and Dalaman. Turkish economy is very strong with 5.5% GDP growth in 2005

The Turkish economy is currently very strong and undergoing much growth. After an average growth of only 2.8 % for ten years from 1993 to 2002, Turkey was able to achieve a growth rate of 5.9 % in 2003 and a substantially higher rate in 2004. Turkey now has the 22nd largest economy in the world. Excellent value front line properties with high capital growth potential What is really attracting interest from international property investors is the current value for money of properties in Turkey. The Turkish market still offers excellent quality properties at prices that most other locations of a similar calibre could not offer 10 years ago. These prices, combined with the outstanding expected growth and powered by strong market drivers, offer property investors a unique opportunity. Over 25 million tourists visit Turkey each year and boost the property market A major indication of the current state of any property market is the tourist trade. In Turkey the tourist market is expanding massively as the country gains more exposure in the international press. The possibility of it becoming an EU member country is slowly beginning to take hold. Current demand for Turkey is reflected in the 25 million tourists it attracts per annum. This translates into solid rental yields by buy-to-let investors who purchase in the best tourist locations. Golf tourism evolving in Antalya, making golf investments more valuable Golf has been a strong market driver in many successful property markets around the world for many years. Spain has used golf to generate a very strong secondary season with thousands of golfers flocking to its shores to play golf during a time when they can’t play their...
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