Whilst Turkey has been a package holiday destination for European tourists for a couple of decades, World of Property discovered that interest in the property market has only really taken off since 1999, when it became clear that the country might be considered for entry into the European Union.
 
In 2003 the Turkish government made it possible for private overseas property buyers to invest in a second home in Turkey. The legislation has only just received formal approval in the last few weeks and that brings with it the prospect of Turkish mortgages for foreigners. Also this year, Turkey was granted so called 'market economy' status, which is a key factor towards gaining full membership of the EU and it is expected that this decision will boost confidence in Turkey's economy among domestic and foreign investors. Indeed, according to Adam Godwin of Dream Homes Worldwide the Turkish economy is on the increase at an incredible rate of 7.2 per cent per annum, five per cent higher than the EU average.

On the subject of incredible increases, 2004 was a record-breaking year for tourist arrivals to Turkey with 17 million visitors pouring into the country, and the Turkish government envisages that 30 million tourists will be arriving by 2010. "To nurture and meet this increased volume of incoming tourists and overseas property buyers, the government has announced a range of multi-million dollar investments and developments", says Martin Kellett of Bellair Villas. The first of these is the improvements to Dalaman International Airport, which is scheduled to be fully operational by February 2006. To coincide with the new airport capacity a road-construction programme has been launched, which will see a new road link and tunnel being built through the mountains, to finish just outside Fethiye, one of the most popular tourist areas. This will reduce the transfer time to Calis and Oludeniz, the beach resorts near to Fethiye, to just 35 minutes. Plans are also in the pipeline to create several new golf courses over the next seven years, with construction starting towards the end of 2006. In addition, there will be a number of luxury four- and five-star resorts. But not content with summer pleasures, Turkey is working on becoming a country for all seasons. A multi-million dollar ski resort has been announced that will be built in the Girdev mountains, and is due to be fully up and running in 2007. "This is great news for property investors as it will open up an extended season and a new rental market. The ski season will also be well catered for by the new winter flights to Dalaman", adds Kellett.

TURKEY DELIGHTS
So infrastructure developments make an attractive selling point for Turkey's real estate marketeers, but what is particularly tingling the taste buds of tourists and the property bargain-hungry investor? Well, Turkey has warmth, relaxation, beauty and exoticism for starters. Certainly, there are many contrasts. Once home of ancient monuments, it now plays host to international football matches and in 2005 became a new venue on the Formula One racing calendar. The country has a long coastline with a huge number of bays and islands, much of which is national park land, and a dazzling 174 beaches have been awarded Blue Flag status. "Many people enjoy the beautiful coastline by sailing on Gulet (traditional Turkish boat) cruises", says Shaun Ashdown of Aquavista Property. "And although some towns by the sea, such as Marmaris and Altinkum, have swelled with the arrival of cheap package deals, due to strict building regulations many others have kept their Turkish charm and offer a relaxing place to stay." Kellett, too, is full of praise for the delights Turkey has to offer. "It is a beautiful country, with all the trappings that the travel brochures love to lure us with. There are dramatic mountain ranges dropping seamlessly into the crystal-clear sea, beautiful beaches, colourful towns and markets, mouth-watering lightly spiced food created with fresh local produce, all served up by a more than eager and exceptionally friendly local people."

PROPERTY BUZZ
Turkey is certainly not bland, whether that is on account of the landscape, food, culture or the brash friendliness of the people – and now the buzz in the property market has added its own touch of spice. "With so many tourists flooding to the country, there has been a boost in the buy-to-let and investment markets and as a result capital growth has soared. What has also happened is Turkey has responded well to its increased popularity by building high-quality properties to cater for the luxury that British and other Europeans want and expect. All of which have helped boost the reputation of property in country", says James Fleure of Buy Abroad. Kellett is in agreement: "The fact that more and more holiday–makers are opting to plan independent travel arrangements – booking online accommodation, hiring a car from the airport and driving to a luxury private villa – with the arrival of cheaper low cost flights and a more experimental attitude to planning their holiday, it becomes clear that these new holiday–maker trends are offering substantial opportunities for property rental."

According to property agents Avatar International the average price increase of property in the last year was 30 per cent, and by January 2005 the number of foreigners owning property in Turkey reached 51,000 – 18 per cent of them British. "This figure is expected to rise by more than 6,000 each year", says Amar Sodhi, managing director of Avatar. "Increased accessibility to Turkey, and comparatively lower property prices than traditional destinations such as France and Spain has produced a growing trend for second home buying here and has made Turkey an ideal place in which to invest." Godwin of Dream Homes Worldwide agrees that Turkey has some practical advantages. "For an investor, the most attractive part of the experience is being able to sell the property without any personal income tax on capital gains, providing it is four years or more after the date of purchase." Another plus point is the low running costs, especially when compared to the relatively long rental season. "We would say that running costs for properties are approximately £600 to £1,000 per year", says Victor Parkin of Real Estate Bodrum, "so you can lock up and leave your home or rent it out for just six to eight weeks to cover your running coats. The main rental season is April to November when daytime temperatures range from 18 to 35 degrees Celsius", Parkin adds.

COASTAL HIGHLIGHTS
Currently, one of the biggest hotspots is the Bodrum peninsula, which has some of the most breathtaking views of the Aegean Sea, as well as stunning scenery and ancient historical sites and is exciting overseas property buyers. The north side of the peninsula is green with olive orchards and citrus groves. The south is more arid – pine-clad with sandy beaches. "Building regulations have kept it picturesque", says Ashdown, "and prices are still comparatively cheap compared to other locations in Turkey. It also has its own airport. I would say that it offers something for everyone and its popularity with the British has come on the heels of it being a traditional holiday resort for wealthy Turks", he adds.

There are a number of developments on the Bodrum peninsula to choose from. Dream Homes Worldwide have three-bedroom villas in Gumusluk, one of the most sought-after areas. The 'Jasmine' villas are 120 square metres in size, on plots of 300 square metres, each with three bathrooms, a living area, kitchen and private gardens leading to a large communal swimming pool. The development is set on a hillside with panoramic sea views across to the Guluk Islands and within walking distance of the beach. Prices for three-bedroom villas start at £72,000.
 
Gumusluk is a fishing village surrounded by tangerine groves, with numerous restaurants on the waterfront, looking out on the half-sunken ruins of ancient Mydos. Off shore there is a deep anchorage that is a popular stop for yachts. For a different atmosphere there are the Sunlight Apartments, also offered by Dream Homes and due for completion in 2006. These two-bedroom apartments are located close to Bodrum and 800 metres from the beach. The complex will have two swimming pools with a water slide, a fitness centre, crazy golf, an Internet café and a tennis court. "We believe these are the most affordable properties in the Bodrum area", says Godwin, "with excellent rental potential due to the superb on-site facilities and community." Prices for a two-bedroom apartment here start from £31,000.

Twenty kilometres along the coast from Bodrum Avatar International has two-bedroom apartments at the town of Yalikavak, a picturesque town with a marina containing 450 berths. There are also waterfront cafés, restaurants, a shopping mall, fitness centre and spa. The 'Gaia-2' apartments are stone-built with whitewashed facades and have windows framed in Siberian pine. The two-bedroom apartments each have large terraces and there is a communal pool. "The interiors of the apartments are light and spacious and have been brought up to Western European standards", says Sodhi. "They have fitted kitchens and bathrooms and the open plan kitchen/living areas feature attractive fire places for winter nights." Prices for the apartments start from £50,000. Further round the coast, the region around Fethiye is very popular due to its relaxed atmosphere and its setting against pine-clad mountains. Fethiye has a sizeable expatriate community of more than 2,500, lured by the scenery and the facilities from banks to a Turkish bath and a modern private hospital. Harlequin Property has an apartment complex elevated above Fethiye Bay in the village of Calica, which has become a thriving tourist centre due to the growing popularity of nearby Oludeniz and Calis Beach. "Calica is a beautiful location that has recently benefited from other up-and-coming areas nearby. This has drawn a constant stream of visitors and has hugely enriched the whole village", says Dave Ames of Harlequin. "I would expect that those who invest now will have made considerable capital appreciation by the completion date of 2007." Prices start from £65,000 for a two-bedroom apartment, rising to £93,670 for four bedrooms. The complex is limited to 60 apartments and will contain two large-sized swimming pools. Reservation fees of £1,000 are required along with a deposit of 30 per cent, and 70 per cent paid upon completion.

MEDITERRANEAN VIEWS
Continuing around the coast to where the Aegean  changes to the Mediterranean, the village of Kalkan has narrow cobbled streets sloping steeply down to its fishing harbour and a backdrop of the Toros Mountains. Many village houses are built in traditional stone and have wooden balconies overlooking the bay. For a relatively small place there are a large number of restaurants – well over a hundred. The closest airport to Kalkan is Dalaman at 130 kilometres away, although it is possible to fly to Antalya with a longer transfer time of approximately three hours. Buy Abroad have six luxury detached villas in Kalkan village. There is a choice of three-, four- or five-bedroom villas each with a minimum of four bathrooms. The villas are based on open-plan living as the kitchen flows into the lounge/dining area. There is a minimum of 50 square metres of outdoor terracing across numerous balconies and each villa comes with a private pool as standard.

John Reilly UK sales manager of Buy Abroad says, "Olympos Villas are spacious homes, finished to a high standard that will appeal to those who enjoy the finer things in life. These villas really are to a high specification and prices start from £267,000." Kalkan has been the target for Keith and Juliette Tomlin from Essex. They had turned to Turkey after being unable to find a property in Spain. Keith Tomlin explains, "We went to Spain to look for a second home but found that properties were very expensive for what you get. We also thought that much of the country had been spoilt with huge amounts of development. "I first went to Turkey about 15 years ago and remember being taken aback with its beauty. Several of our friends have bought properties there which have already increased in value.

The Tomlins went to see 'Mediterranean Apartments' in Kalkan, a development for sale through Avatar International. "When we saw the apartments, we knew immediately that we wanted to buy there because they were stunning. We bought a one-bedroom apartment for £42,000. The development is in a fantastic location, close to Kalkan's village centre with its stunning harbour. We've got two young daughters so it will be great to take them on holiday there. In addition, the rental returns are good and Turkey is growing as a tourist destination, so we are confident that we will be able to let the property when we're not using it." Mediterranean Apartments is a collection of 54 one- and two-bedroom apartments that enjoy striking views over the turquoise coast of Kalkan. The complex benefits from five communal swimming pools. The top floor apartments are all duplex, with an American-style kitchen  and large living area, two bedrooms and two bathrooms.

Two of the latest places in Turkey to catch the eye of property investors are a total contrast to each other: the small resort of Belek and the mighty city of Istanbul. "Belek near Antalya is starting to show its potential", says Ashdown. The countryside of the Antalya region is beautiful – coastal plains with the backdrop of the Lycian mountains. To the east the land is covered with citrus groves and banana plantations. Belek is 20 minutes from the city of Antalya, spread along an  expanse of white sand, backed by pine forests. "It is a golfing mecca with six golf courses currently, with another six in construction", says Ashdown. "There are superb beaches and the council is spending money on improving the town centre. Prices are still competitive. For example, we have a four-bedroom villa with own pool on a small complex which is right on a golf course for £135,000." Istanbul, the spiritual and cultural heart of the country, is a huge city with a population of over 12 million. "If you thought coastal property in Turkey was hot, consider for a moment what has been happening in Istanbul", says Andy Pyke of Turkish Property People. "The city is going through an intense period of renewal and major investment. New hotels, shopping centres, and business districts are springing up and the middle classes are moving to 'life-style' developments in the countryside surrounding the city", adds Pyke. "Neglected historic quarters of Istanbul with grand 19th-century apartment buildings are being restored to their original glory and are being eagerly snapped up by people who enjoy the atmosphere and advantages of city living", Pyke continues. "Prices for a two-bedroom apartment in this kind of area start at around £70,000. At this time, there are still hundreds of dilapidated apartment blocks available to restore and £300,000 can buy you a complete block of eight apartments with huge scope for conversion."

Turkey is able to offer property treats to overseas property buyers that are unexpected as well as conventional. It seems that there is a genuine buzz about the property available and the beautiful locations. Whilst Turkey may not strictly speaking be an emerging market, there are new areas being developed with a sense of regeneration in mind. There is a heady mix of places and properties to go for, and regardless of what happens with the EU membership, or what is predicted for price increases, it is the beauty and warmth of the country that should inspire you to take a closer look.

Michael and Jill Lucas decided to invest in Turkey after visiting on holiday and picking up tips on Turkish investment from the TV. They ended up choosing to buy in Icmeler. "We went to look to buy in winter 2004 and then again in March 2005", says Michael. "As our main aim was to invest we had to ensure that we could rent our property, and the popularity of Icmeler and the more upmarket clientele there made the resort a good choice for us. "If a rental income was not required to cover the costs we would have been able to invest elsewhere, where we could have possibly gained more capital growth, but our hands were tied by our finances and we needed to let. Our rental income has almost covered all our costs but we won't know our final first year's figures until June 2006. However, our outlay has been minimal. "We found the process easy", continues Michael. "We re-mortgaged our own home to buy in Turkey and the main gamble was whether the rent would cover the mortgage. Banking in Turkey was straightforward; Aegean Estates held our hand opening a bank account getting a tax number and so on. We didn't have a survey done as it was a brand new building and we saw it at two stages of construction. Aegean Estates did all the organising of contracts and translations for us. "We are very pleased with the way the rental of the property has been going. The Aquavista rental website has been very effective for us at a relatively low cost. The only unexpected thing is that it takes quite a lot of time to deal with bookings and enquiries but at the moment it is something that we enjoy and find interesting", adds Lucas. "If we had more money to invest we would buy another property because, I would guess the one in Icmeler has gained at least 15 per cent this year. "Icmeler is such a great place. There is something for everyone – quiet countryside, shopping, the beach, pool, an old village and the best thing is the Turkish people", Michael concludes.

Normally a power of attorney will be needed and, in some cases, military permission to buy is required – taxes must also be paid. But these are the main steps. The steps will be different if you are buying a resale property or if you are buying either a new or a resale property via a Turkish limited company. Sign a reservation contract. This takes the property off the market for a limited period, for example, 30 days. You usually pay a holding deposit. You decide whether to have a survey done if the property is a resale or a completed new property. Your lawyer makes enquiries about the property. These will include a title search to ensure that the person trying to sell the property to you actually owns it and a planning search to ensure it has planning permission. Depending on the nature or your case, other searches may be needed. If all is well you sign a preliminary contract of purchase. This commits you to the purchase and you pay over a deposit, typically 30 per cent of the price of the property. If building work is involved, such as in a new property, stage payments are made. At the end of the building work a habitation certificate is issued, certifying that the property is fit to be lived in and complies with the terms of the building licence.

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Other article about Turkey:
Advice on living and working in Turkey
 
For further information:
Dream Homes Worldwide 
Aquavista Property Consultants Ltd 
Buy Abroad 
Avatar International  
Real Estate Bodrum  
Turkish Property People 
Harlequin Property

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Article first published in April 2006