Turkey: Europe’s most attractive real estate market
The London-based Global Property Guide (GPG), a respected consultancy group preparing analyses and research on global property markets, determined recently that Turkey has one of the most attractive property markets in Europe.
The GPG published its research in June to assess the property markets across the European continent. Topping the list was Slovakia, followed by Turkey, Bulgaria, Romania and Hungary. The recent reforms in Turkey have revitalized its economy with the property sector in particular performing well enough to demonstrate astonishing potential. The study noted that interest rates for home loans have started to decrease recently as a consequence of the mortgage law. The report added that it seems likely Turkey’s position near the head of the list will be strengthened in the coming years. The report expressed that Istanbul and coastal areas in southern Anatolia are especially in demand by foreign investors. The last two years witnessed a considerable flow of money into these places, it said.
According to the report, features making Turkey one of the most alluring markets were its stunning gross national product (GNP) growth rates over the past five years, a reformist government and impressive housing market dynamics. Despite no capital gains tax, prices are a little high in Istanbul and the law is mildly pro-tenant, the report said. “However, coastal areas probably deserve a better rating than Istanbul,” it said.
For Slovakia on the other hand, the report assessed that housing prices are inexpensive and gross domestic product (GDP) growth has recently become strongly positive, with no increase in inflation. “Rental income tax is low, there is no capital gains tax on long-term property holdings and round-trip transaction costs are low,” it claimed. GPG officials noted that British investors have leaned most toward Turkish property markets in recent years. Particularly since the first half of this year, property investors have put Turkey at top of their priority lists.
With respect to investment in the property market, they were inclined to invest in countries with high growth potential like Turkey instead of “conventional markets” which have lost most of their appealing profit margins.
Land prices in Turkey’s coastal areas are much cheaper than their counterparts in other Mediterranean countries, but they will probably rise during Turkey’s accession process to the European Union, the report predicted. Also suggested was that land and houses along the shore will increase in value by 50 percent next year and by 100 percent in the middle term.
The report claimed that Turkey had enjoyed huge improvements in its tourism infrastructure along with increased transportation alternatives, in parallel with its extraordinary economic performance. It also advised its readers to invest in Turkey’s tourism because Turkey has a longer summer season than its rivals in Europe, has more suitable natural and climatic conditions, is cheaper and has the appropriate infrastructure