July 18, 2024


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Property Prices In Turkey Set to Increase With the Introduction of the New Property Buying Laws

Have prices dropped to their lowest point in the popular resort town of Alanya, a question many would be overseas property buyers are now considering returning to this previously booming property market. Back in 2005 the boom was in full swing mainly with British, Irish and Scandinavians, buying anything and everything it seemed and as result prices there doubled or even trebled in value, with many selling on and for an instant 40% profit in many cases.
The market is very different these days with the impact of the financial crisis in the UK and notably Ireland property buyers are not as eager or as plentiful as they were. Is this change having an impact on Alanya who now many consider one of the most depressed markets in Turkey?
Although the prices are now lower than back in 2005 it is just not the lack of buyers to Alanya but the main effect is there are other new property markets along the Mediterranean and Aegean coast coming villas near hoskote into play. The old favourites are still performing well such as Bodrum and Antalya but the new markets such as Mersin and inland the free zone area of Gaziantep is attracting those looking to move to Turkey and do business as well as live. Down on the coast from Gaziantep is the coastal area of Hatay which has always been a tourist area but only for the many locals it attracts. The areas Mersin and Hatay do have comparisons to the popular and highly priced locations of Kas and its close neighbour Kalkan, but without the overpriced tags.
The most active buyers from Europe now seem to be from Germanany which does not seem to have been as badly affected by the financial crisis or are of a different mind-set. Although numbers are not high the few that are venturing into the real estate market in Turkey are still favouring in the main Alanya, Antlaya and particularly large and expensive Villas in Bodrum. Increasing numbers are starting to look at the new property areas further along the coast.
The new buyers that are becoming increasingly active are the neighbouring Arabic countries which with the law changes will allow them to buy without the need to set up a Turkish company to do so. This new property Law which has now been ratified has seen a huge increase for real estate companies selling properties in Turkey.
Istanbul property for sale is still the favoured place for investors to look that is genuine investors and not those who buy a property in Turkey and rent out for 4 weeks a year, who are really buying a holiday home in Bodrum or whichever part of Turkey they choose to buy in. There is nothing wrong in buying to have a holiday home in Turkey but it is just like anywhere in the world if you want the rental yields you cannot spend all the time there yourself and expect the returns to follow.
Istanbul rental income is likely to increase as it has done for the last few years and over the coming year there is no reason to suggest it won’t continue to in the same way, although investors beware location is the absolute key as not everywhere will produce the rental income.
Buying an Apartment in Istanbul is still a good option for investors provided the criteria is met. The criteria being, buying in the right development, in the right place and paying the right price. This is critical as many invest and will never get the returns they are told or sold to be more precise. Istanbul is like any other major city anywhere in the world, it has its locations where everyone wants to buy a property and parts where no one really wants to buy or live.
An apartment in Taksim viewed as the most desired place to buy in Istanbul, until investors see the prices that you need to pay here. The more likely areas for investment such as Esenyurt, Buyukcekmece and Bahcesehir on the outskirts of the city centre offer more choice within most investors budgets. Then on the Asian side of Istanbul there is Pendik near the Sabiha Gokcen International Airport and Kadikoy which offer more realistic opportunities in terms of price. For higher priced investments on the Asian side then Uskadar has to be a serious consideration with its access to the city and front line sea properties.
Other areas which are attracting attention of property buyers are the locations mentioned of Hatay and Mersin with its relatively close proximity to the borders of Lebanon, Syria, Iraq and Iran. Although they are not presently on the radar of the European buyers they will surely start when they become aware of the low-cost of properties in these locations.
Property prices generally in Turkey are increasing, with the proviso the location and quality has to be right. It is a very different market today from the boom in 2005 when it has to be said some of the mass developments that sprung up were of shocking standards but served the purpose to take advantage of the many property buyers who didn’t want to miss out!!! For those who felt they missed out the first time make sure you miss out again this time that is on the poor quality developments that are certain to spring up with the increase in property buyers in Turkey, after the introduction of the new property law.
Investing in the Turkish property market looks the best bet for the year ahead but take advice and knowledge from someone who knows the market place as well as doing your own research and the rewards of buying a property in Turkey will be yours.