Property market in Turkey going from strength to strength

According to overseas property agent Oceanwide Properties, the property market in Turkey is going from strength to strength, and British investors may feel that now is the time to strike, with prices still remarkably low and rental returns good, when compared with many other property investment countries.

Turkey's economy is expected to become the 12th largest in the world, according to the Organisation of Economic Cooperation and Development (OECD), which anticipates economy growth of 8.2% in 2010.

Clare Nessling, Conti's Operations Director, says: "Turkey has been steadily growing in popularity amongst British investors, due to easy access from the UK, great weather, and cheaper prices. Interest rates are low, and property purchase costs and taxes also tend to be lower than other popular hotspots. It's also a huge holidaymaker destination, making rental yields in the popular tourist areas very lucrative."

"It is an exciting time to be marketing homes in Turkey", says Suleyman Akbay, managing director of Oceanwide Properties. "The more tourists come, the greater the number of those who want to own a home here. Turkey has phenomenal summer weather, many Turks speak English and with prices an absolute bargain compared with many other resort locations around Europe, there has been a positive upsurge of buyers."

And according to placeinthesun.com, long-term prospects for the city's residential property market continue to look positive, with residential demand continuing to outpace supply. It is projected that around 250,000 new homes are required annually in Istanbul over the next five years, and yet less than 200,000 new residential properties are currently being delivered each year.

Conti is also experiencing increasing interest in Turkey. The company has seen a steady rise in mortgage quotes for the country over the last 18 months, and in May of this year, the number of quotes issued was double that of the previous monthly average in 2010. Since then, demand has remained steady, hitting another peak in September.

The average number of monthly mortgage quotes issued for Turkey has increased by around one third when comparing this year with last year. At the moment, it accounts for 18% of mortgage enquiries received at Conti, and is the third most popular overseas property hot spot.