TURKEY prepares itself for a record-breaking summer tourist season
TURKEY prepares itself for a record-breaking summer tourist season, with 25 million visitors expected by Turkish officials this year, the country’s property market looks set to attract a record number of British buyers too. Land Registry figures show over 74,000 foreign property owners in the country. Although way behind the established property spots like France and Spain in terms of the number of buyers, up-start Turkey has moved from being a relatively unknown emerging market for adventurous buyers to achieve a regular spot in the top ten most popular destinations. This trend looks set to continue with a Nat West survey of British mortgage lenders identifying it as the third most popular country to buy property in the next three years. So what is fuelling this interest? Turkish property is still excellent value, with high-quality apartments from as little as €35,000 still available in some of the coastal resorts. Huge investment is being channelled into the development of the coastal areas as part of the government’s plans for Turkey to become one of the world’s top five tourist destinations by 2023. On the ground, this means new airports, roads, golf courses, marinas and hotels- all of which have a very positive effect on the desirability of Turkish property and values. In addition to the million-plus British tourists that visit Turkey each year, the 
pleasant Mediterranean climate, relaxed way of life and low cost of living are attracting a growing number of permanent British residents and retirees. A British pension can support an excellent standard of living and the quality of private healthcare is high with modern clinics and hospitals with English-speaking staff in the main resorts. The availability of new finance options, with several Turkish and European banks now offering 60-100% mortgages for new and off-plan properties, is an important factor increasing demand from foreign buyers. Interest rates on sterling mortgages typically start from 8.5%, so although a Turkish mortgage may sound attractive, raising money back home is by far the cheapest option. Don’t be tempted by the lower rates on euro mortgages, because unless your income is in euros you will be exposing yourself to changes in the euro-pound exchange rate – something that could cost you dearly if current trends continue. Many mortgage brokers will forget to remind you about this potential pitfall! The temporary freeze on the issuing of title deeds to foreigners, ordered by the Turkish Constitutional Court on April 16th while the government redrafted parts of the legislation relating to foreign purchases, should come to an end soon. The changes to the amount of land foreigners can buy have been approved by a parliamentary committee and are now waiting to be published in the Official Gazette – the wheels of the Turkish bureaucracy grind 
slowly forward! Under the amended legislation foreigners can own up to 10% of an officially zoned area only, instead of 0.5% of any of the country’s provinces. So the changes will have absolutely no affect on the vast majority of foreign buyers. Unlike in 2005, when a similar stop on foreign purchases dragged on for over 5 months, the current freeze seems to be having little affect on the market. According to a Europe-wide report by Savills Research, property values in Turkey increased by an average of 15.5% each year from 2002-2006, with industry experts expecting 15-20% increases in 2008. However, an over-supply of property in some areas means that not all the resorts are a good buy. When purchasing new or off-plan property take care to buy from an established developer with a high build quality. Location and communal facilities, if you are buying on a development, are all important when you come to rent or resell the property too.
pleasant Mediterranean climate, relaxed way of life and low cost of living are attracting a growing number of permanent British residents and retirees. A British pension can support an excellent standard of living and the quality of private healthcare is high with modern clinics and hospitals with English-speaking staff in the main resorts. The availability of new finance options, with several Turkish and European banks now offering 60-100% mortgages for new and off-plan properties, is an important factor increasing demand from foreign buyers. Interest rates on sterling mortgages typically start from 8.5%, so although a Turkish mortgage may sound attractive, raising money back home is by far the cheapest option. Don’t be tempted by the lower rates on euro mortgages, because unless your income is in euros you will be exposing yourself to changes in the euro-pound exchange rate – something that could cost you dearly if current trends continue. Many mortgage brokers will forget to remind you about this potential pitfall! The temporary freeze on the issuing of title deeds to foreigners, ordered by the Turkish Constitutional Court on April 16th while the government redrafted parts of the legislation relating to foreign purchases, should come to an end soon. The changes to the amount of land foreigners can buy have been approved by a parliamentary committee and are now waiting to be published in the Official Gazette – the wheels of the Turkish bureaucracy grind 
slowly forward! Under the amended legislation foreigners can own up to 10% of an officially zoned area only, instead of 0.5% of any of the country’s provinces. So the changes will have absolutely no affect on the vast majority of foreign buyers. Unlike in 2005, when a similar stop on foreign purchases dragged on for over 5 months, the current freeze seems to be having little affect on the market. According to a Europe-wide report by Savills Research, property values in Turkey increased by an average of 15.5% each year from 2002-2006, with industry experts expecting 15-20% increases in 2008. However, an over-supply of property in some areas means that not all the resorts are a good buy. When purchasing new or off-plan property take care to buy from an established developer with a high build quality. Location and communal facilities, if you are buying on a development, are all important when you come to rent or resell the property too. 
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