Turkey - a booming property market - 11th June 2009

Mortgage applications at Conti up by 143%

The global financial crisis is clearly not dampening the appeal of property in Turkey, which has become one of the top investment destinations in 2009, according to Conti, the UK's leading overseas mortgage specialist. The company has seen an increase of 65 per cent in mortgage applications for Turkish properties, when comparing the first five months of this year with the last five in 2008.  And over the last two months alone, applications are up by a massive 143 per cent compared with the same period last year.

Often referred to as the 'new Spain', Turkey offers some great property prices and all the benefits of its Mediterranean location, minus the effects of the strong euro, which have led to decreased levels of demand in other more traditional locations over recent months. Tourism in Turkey has risen dramatically over the last few years, with predictions that it will reach just under 30 million visitors in 2009. This will ensure that demand for quality rental properties in the popular tourist areas will continue to outstrip supply, making rental yields very lucrative.

Clare Nessling, Conti’s Operations Director, says:
'We're receiving a lot of enquiries about Turkey and it's not hard to see why. A healthy tourism industry, cheaper house prices and rising demand for rental properties have all contributed to its popularity of late. These factors, combined with low interest rates and the fact that it' out of the eurozone has made it increasingly attractive, as well as more affordable, for UK buyers.'

According to Conti, Bodrum is a particular hotspot, with many British investors snapping up small coastal apartments which they can use for their own holidays, but also rent out easily to others. Many developers are offering guaranteed rentals, which is working as a real incentive to those considering a purchase.  But there has also been an increase in the number of people buying more expensive villas, especially in areas such as Fethiye, and those investing in multiple properties in the prime coastal areas. Turkey truly has mass appeal.

With accessibility being a key factor too, Turkey has a wide choice of airports and is extremely well served by flights from the UK, with easyJet recently announcing the launch of three new flights from London Gatwick to the country's most popular regions of Bodrum and Dalaman.

The country is also growing in popularity as a retirement destination, with many being lured by the warmer climate, lower costs of living, and excellent property value. And because it has avoided the effects of the strong euro, which has eaten into the pensions and savings of retirees in countries such as Spain, France and Portugal in recent months, it's simply a more cost effective location at the moment.   

Overseas Mortgages
Conti provides finance for purchasing holiday homes, investment and retirement properties in more than 45 countries, and re-financing for any purpose in 15 of those countries. Rates for mortgages in Turkey start from as little 4.80%.

All mortgage applications are processed and underwritten by Conti's teams of specialists, who know the exact mortgage application requirements for each overseas lender. It can also ensure that clients are put in touch with specialists in the country in question, to enable then to comply fully with planning and legal conditions and assist with currency exchange.