The attraction is obvious; over 300 days of sunshine a year, breathtaking landscapes, everything a holidaymaker could possibly desire - and not a euro in sight.
Tourists, captivated by its natural beauty, history and perfect holiday environment, return time after time to luxuriate in the experience. But the well kept secret called Turkey is finally out - visitors soared from 17 million in 2006 to nearly 30 million last year.
Turkey is a priceless gem, set in seemingly endless miles of stunning coastline lapped by the warm turquoise waters of the Mediterranean and Adriatic. Everywhere around you, ancient ruins conjure up the richness of its Lycean, Greek, Roman, Byzantine and Ottoman heritage. Long sun-drenched summers, charming towns and villages, fine cuisine, a veritable cornucopia of recreational activities and disarmingly friendly local people weave their distinctive magic to complete the enchantment.
Yet many in the UK are still surprised to discover that Turkey is already the world’s number 1 golfing venue and 8th most popular tourist destination. Little wonder so many of the more discerning are discovering that now is the perfect time to invest in Turkish property.Of the thousands who have already bought holiday homes there, few realised at the time what good investments those purchases would prove to be. They are still as good, whether at £30,000 or £1million.
While property prices in the UK, US and Eurozone famously plummeted, average prices in Turkey’s tourist regions have quietly continued to rise at 10-15%. Albeit lower than the preceding 5 years’ average of 22% per year, this resilience amidst global economic gloom augers well and points to Turkish prices being strongly influenced by a combination of conditions not generally mirrored elsewhere.
The search is on with a vengeance for more affordable holidays favouring destinations that do not use the dollar or the euro. Hence in Turkey’s spectacularly beautiful coastal regions tourism is enjoying equally spectacular growth. The 2009 Travel Trends Report jointly published by the Foreign Office and ABTA confidently reported that the number of Britons visiting Turkey last year had increased by 32%. Europe’s second largest travel operator, Thomas Cook, expects to see this trend continue, reporting last month that the hottest ticket this summer is a holiday in Turkey.
Unsurprisingly, the rapid expansion of tourism is a major driver of the property market in Turkish resort areas; quality self-catering accommodation simply cannot be built as fast as the demand for it is increasing. So canny property investors seeking fertile ground for capital growth eye with approval the Turkish Government’s tourism strategy, spanning massive infrastructure investment in airports, highways, urban improvements and marinas, with all construction subject to rigorously enforced planning and building control. Strict conservation laws protect the environment that draws visitors to Turkey, in a determined endeavour to leave it unspoilt by the concrete jungles found elsewhere around the Mediterranean.
Turkey is a stable, modern democracy that now ranks as the world’s 15th largest economy. Its mature and dynamic private sector thrives in an energising liberal and reformist investment climate that has seen GDP rise by 143% and exports by 179% over the last 5 years. Its burgeoning economy is underpinned by a highly educated and motivated population of 73 million, of which 61% is aged under the age of 34. This strategically vital member of NATO has been in a Customs Union with the EU since 1996 and is now an accession state.
For the present, however, its independence of the EU enables its already buoyant real estate market to develop, relatively unaffected by sterling’s poor performance against the euro. In this particular regard, Turkey is the envy of emerging European countries such as Estonia, Bulgaria, Poland and the Czech Republic.
A youthful and economically active population also provides the established resales market so essential to investors’ exit strategies. A good investment must after all be realisable.
Crucially though, prices are still much lower than in other Mediterranean countries and property continues to yield good returns. Medium to long-term investment prospects remain very promising.
But investors buying in Turkey benefit in the short-term, too. Transaction costs in Spain, Greece, Cyprus or France can add as much as 10 -16% to the cost of purchasing a property, compared with just 3% in Turkey. Similarly, Spanish Income Tax is chargeable on rental revenue, whereas such items of expense as repairs and management fees are fully tax deductible in Turkey, where only the profit on rentals is taxable. Other running costs are also very low, for example with annual Council Tax chargeable at a mere 0.1% of the property’s value.
UK citizens are reassured by the avoidance of dual taxation treaty that exists between the two countries. In a move to encourage foreign investment in Turkey, the Turkish Government also decided that it will charge no Capital Gains Tax on properties purchased by foreigners and owned for more than 4 years.
The purchasing process itself is much simpler than in many countries and need not be a daunting experience. Turkey has a robust legal system that offers protection to the overseas buyers its Government’s policies actively seek to encourage.
Just 4 comfortable hours’ flying time from a host of UK airports, Turkey’s resort regions are accessible year round as never before. Direct services to resort airports such as Dalaman, Antalya and Bodrum by low cost charter airlines Easyjet, Pegasus and Onur Air supplement holiday flights operated by Monarch, Thompson and Thomas Cook, together with the scheduled services of Cyprus Turkish Airlines.
All in all, Turkey is the logical choice for investors and lifestyle buyers alike.
In just 5 words - BUY NOW, WHILE YOU CAN