It is the fastest growing economy in Europe. In 2012 Turkey is expected to grow by 3%. The population of Turkey is growing faster than any other country in Europe, and will soar up to 83 million by 2023, a 72.5 million jump compared to today. Turkey has an unusually young demographic, with half the population being below 29 years old, according to TurkStat.
More than 70% of foreign direct investments come from Europe. Likewise, 50 % of investments in trade and real estate come from European investors
More than 70% of foreign direct investments come from Europe. Likewise, 50 % of investments in trade and real estate come from European investors (foreign investment in real estate reached $2 billion in 2011). Turkey is looking into the countries of the Gulf for business, economic, political and diplomatic reasons, even while tensions with Iran and Iraq have increased. Ankara would like to be less dependent on the EU for foreign direct investment.
New real estate laws in Turkey will allow buyers from countries that have previously been blocked from entering the property market, such as UK and Germany.
Buyers from the UK, Germany, Sweden, Norway and Netherlands already have unrestricted buying rights, but buyers from places such as Greece, Russia and Ukraine face restrictions when buying on the Black Sea coastline.
Now a new decree will allow access to buyers from 129 countries, including the United Arab Emirates.
International luxury real estate buyers are predominantly new wealthy people and petro-dollar visitors who came to Turkey from the surrounding “oil countries”.
“Turkey’s upper hand is that its values and rental yields are increasing year after year where other markets are contracting. Affordable, good connections, lots of new homes, a burgeoning population and now an increasing market presence makes Turkey attractive” some property experts say.
Why are Turkish properties well valued today?
Turkey’s property markets present excellent value. Low property costs around €2,386/sqm in Istanbul’s high-end districts. Taxes are low, especially capital gain taxes: there are no capital gain taxes after holding property for 5 years, and income taxes are reasonable.
“Property prices in Turkey are quite low, thus making it attractive for investment,” Alasdair Macdonald, the senior director of Knight Knox International, a property brokerage, told the international press. “Investors could easily get just under 10% capital growth and rental yield of 8% per annum.”
If you’d like to read more information about investing opportunities, discover the Luxury Real Estate Hotspots section of our Blog.
