Turkey is today an incredibly popular destination for overseas property investment. This is in spite of the fact that 2015 was a tough year for the Turkish economy, which was plagued by political instability, hit badly by terrorism and hurt by the refugee crisis. Turkey is today home to over 2.2 million Syrian refugees fleeing the war torn region.
So what does 2016 hold in prospect for those looking to buy property in Turkey? Is 2016 a good time to sell property in Turkey? Look for answers in this property update Turkey 2016.
Let’s begin with the facts. Properties worth over $4 billion were sold in Turkey in 2015, with a lion share of the properties going to foreign nationals. Turkey has more than held its own after the 2008/2008 global housing recession. Property prices here have seen a healthy growth of 10 to 15% on a year on year basis. We expect this trend to continue over the next 5 years as well.
The outlook for 2016 in Turkey remains positive because of steps taken by the government such as the Reciprocity Law. This law frees up all properties in the country for investment from foreign buyers. Foreign buyers were responsible for over 25,000 property transactions in Turkey in 2015. We expect to see more of the same in 2016.
So, who are buying properties in Turkey? Russians are the most prominent of all foreign nationals looking to buy apartments and villas I Turkey. Russians were responsible for 2,500 of the 25,000 purchases made by overseas investors.
Over 3 million Russians visit the country every year, so there is certainly a lot of interest coming into Turkey from Russia. With the decline of the Russian economy, a lot of Russians, even middle class Russians, not just wealthy individuals, are looking to invest in overseas property to divert some of their assets from Russia. Turkey serves as a perfect overseas property destination for them.
Britons, Germans, Scandinavians, Belgians have all shown a lot of interest in buying Turkish properties. They are attracted by Turkey’s picture perfect Mediterranean climate, vast coastline, sandy beaches, plenty of opportunities for scuba diving, snorkeling and other water sports and the general friendliness of the local population.
There is also a great deal of interest coming from the Middle East. The Arabs have always been buyers of luxury beachside apartments and villas in Turkey. There has always been a great fascination for Turkish culture in the Middle East, largely because of the popularity of Turkish TV shows. Turkey is also popular with Arabs because it is such a successful economy and a Muslim nation.
What has also been observed of late is that a lot of Chinese are taking a keen interest in Turkey. Turkey receives 300,000 visitors from China every year. This interest now extends to Chinese investors buying property here. Real estate agencies in Turkey have reported a 300% rise in the number of enquiries coming from Chinese property hunters over the last 12 months. This is phenomenal and just goes to show Turkey’s tremendous popularity as an overseas property destination.
Among the areas in Turkey, Istanbul continues to dominate, getting a bulk of the overseas investment. But other regional hubs such as Bodrum and Kalkan are popular too. Bodrum and Kalkan are a hit with British buyers, along with the Fethiye and Antalya regions. In fact the entire Turkish coastline is popular with foreign nationals, who look to buy beachfront villas and apartments.