Turkey Investment Market Growth

Land prices in Turkey have doubled over the past two years and they continue to rise steadily by 25–40% per annum.

Research shows that, compared to 1994 figures, investments have yielded the following average returns:

Stock market	18%(gross)
Pension plans	significant loss (net)
Turkish property	568% (net)

(source: invest-in-turkey.co.uk)

General Capital Appreciation Projections

According to many investment experts, capital appreciation in beach areas is expected to increase initially by 50% and then by 100% over the next two to three years. For example, capital growth in the Bodrum area over the next 2 years is predicted to be in the region of 40-50 %.

The projection below is based on capital growth for a Bodrum-based:

Property type	Purchase price	Projected sale price	Potential profit
2 bed Apartment	65,000GBP	91,000GBP	26,000GBP
4bed Villa	128,000GBP	179,200GBP	51,200GBP

NB: Projected capital growth illustrated above is calculated at a rate of 40% and is intended for guidance purposes only.

Turkey Economy

Turkey is currently at the start of the long road to possible EU inclusion. There are many factors yet to be discussed and issues Turkey needs to correct before inclusion will be seriously considered. When Turkey does get accepted into the EU, it can be expected property prices will increase substantially and the tourist infrastructure will improve even further. Many investors are purchasing in Turkey with EU inclusion as a major driving force for this investment, while they look to take advantage of the current low property prices and a growing rental market.

The Turkish economy is very strong with 5.6% GDP growth in 2005, while Turkey now has the 22nd largest economy in the world.

Tourism

A major indication of the current state of any property market is the tourist trade. In Turkey this market is expanding massively as the country gains more exposure and the possibility of becoming an EU member country begins to take hold.

Turkey is attracting some 25 million tourists per annum, indicating an enormous tourist demand for the area. This demand can then be converted into solid rental yields for buy-to-let investors who carefully purchase in the best locations.

As the property investment market continues to grow in Turkey, there is now a huge demand for more flights to all main tourist destinations in Turkey. Low cost airlines such as Turkish Airlines are already planning new routes, lower fares and increased services to cater for the increased numbers of visitors. As accessibility increases, Turkish property will become even more sought after and investors will inevitably see encouraging capital appreciation.

Reasons Why Turkey is an Intelligent Property Investment Location

Capital appreciation is expected to increase by at least 50% and even as much as 100%
The Turkish economy is very strong with a 5.6% growth in 2005.
Turkey has the 22nd largest economy in the world.
Eventual inclusion in the EU will drive property prices up.
An enormous tourist market (some 25,000,000 p.a.) creates solid rental yields for investors.
Increased demand for flights to Turkey mean an increase in demand for accommodation.