Turkey is emerging as a major hotspot for those looking to invest in a second home abroad. In 2012, the country reportedly recorded the seventh highest rise in residential property globally, up 11.5% – higher than any other European country. The first six months of 2013 tell a similar story, as the number of overseas buyers has more than doubled from the same period last year. The alteration of Turkey’s reciprocity law has allowed investors from across the Middle East to enter the property market with wealthy buyers from Dubai, Saudi Arabia and Qatar now able to buy Turkish property without restriction, adding to the large numbers of investors already hailing from Germany, Russia and England. With investments of up to $20 billion predicted over the next two years, it seems that Turkey’s position as a major player in the international property market is now firmly established.
A big part of Turkey’s appeal for second homebuyers lies in the wide selection of locations on offer. Covering over 300,000 square miles on the bridging point between Europe and the Middle East, it provides an eclectic selection of backdrops for your new residence. Investors can look to the likes of Çeşme and Bodrum for examples of luxurious seaside locations with a large expatriate contingent already in residence. Çeşme’s small-town ambience twinned with an elegant marina and thriving nightlife has already inspired numerous comparisons with the famed resort of St Tropez, and strict planning regulations are ensuring that the town’s exclusive reputation won’t be tarnished by over-development.
If you’re looking for something more up-tempo, there are few places more thrilling than Istanbul. Turkey’s growing prominence on the international stage is encapsulated by its biggest city, a distinctive mix of tradition and modernity that’s unparalleled throughout the continent. This 21st Century metropolis is an ideal location for a long-term property investment, with values set to climb in the next few years.
For many investors, the attraction here doesn’t come from luxurious mansions just waiting for new owners, but from the possibilities posed by the stretches of open land available for purchase. If you’re considering following this route, it’s important to bear in mind that planning regulations only allow a small percentage of a plot to be built on, typically 15-25%. This is obviously important if you’re buying a relatively small-sized plot, as it will restrict the room you have to expand your new property. In addition to this, it’s crucial to have a clear strategy throughout the building process and a reliable contact that you can maintain regular correspondence with. Finally, whether you’re buying an existing property or building your own, it’s recommended that you hire an independent lawyer, who can assist you with the assorted paperwork that comes with being a foreign investor in Turkish property.
If you’re interested in expanding your portfolio to Turkey, Engel & Völkers are the company that can help you make the buying process as stress-free as possible. No matter which region you plan to invest in, we can lend you our expertise to ensure that you find exactly what you’re looking for, with years of experience navigating the complex Turkish real estate market. Like us on Facebook to get regular updates on all our international activities.