Turkish Delight

The AK Party has remained in power in Turkey. Despite fears that they would return to their Islamic-style roots, leader Tayyips Erdogan is portraying AKP as a moderate party with aims of justice and development.

It is this aim of development that will catch the eye of foreign property investors. The AKP have been in power for five years and during this time, the property market in Turkey has boomed alongside the economy thanks to free-market policies and economic reforms. Inflation has fallen from around 100% at the end of the nineties to single digits and the number of unemployed has declined dramatically.

All this points to good long-term economic growth in Turkey which in turn points to a buoyant property market. Capital appreciation in some parts of Turkey on property has been in double figures over the past number of years. With the AKP remaining in power, there are few economic concerns over the country’s future. The free market policy welcomes foreign investment and with a further five-year term in store, it seems likely the property market will continue to do well for foreign investors.

The AKP is looking to reach EU membership standards too, and this has a positive impact on Turkish property. The government has already relaxed restrictive laws surrounding the property of Turkey’s religious minorities, again a good sign for property investment.

The AKP are also working hard on promoting Turkey as a good place for a holiday. Plenty of money has poured in to golf courses and marinas to try and capture more tourists. This is welcome news to those looking to rent out their Turkish property – more tourists mean more rental yields. The government are looking to double the number of tourists to the country by 2010 – property prices are expected to rise thanks to this ambitious plans with annual increases of around 10-25% expected in some of the main tourist haunts.

Turkey is the new Spain. Just like 30 years ago in Spain, the low price of Turkish property is attracting more than just holiday makers, with plenty of investors looking to buy. The first wave of investors looked at the Southern resorts of Fethiye and Marmaris, but now, the interest has spread to other areas such as to the Northern Bodrum and Cesme peninsulas.

If you are looking for a fairly secure bet with good prospects for both rental yields and capital appreciation, buying now in some of Turkey’s smaller resorts has the potential to be a big earner in the future.

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  1. buyer7 | Jul 30, 2007 | Reply

    Maybe this will catch the eye of the reader, too. Turkey’s problems are not solved just because the AKP is in power. http://www.atlantic-community.org/index.php/articles/view/Turkey%3A_Tough_Challenges_for_AKP_Despite_Landslide_Victory Even though Turkey is, truly, trying to achieve EU standards, being alienated by the EUropean Union might have an adverse effect that could cause market instability. Turkey is not like Spain 30 years ago. Dont fool yourself.

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