The overseas property market dictates that where holidaymakers go, those looking to buy property follow. So when you consider that close to one million British tourists a year have visited Turkey since 2001, it's no great surprise that the country is now garnering plenty of attention from Brits looking to buy property. Despite its eastern location – the country is split by two continents, Europe and Asia – the western, far more touristy half of Turkey would not look out of place in Western Europe, albeit with a few exotic eastern charms thrown in for good measure.

Why buy property in Turkey?
Turkey's appeal for Brits is not hard to spot. Sandwiched between three seas – the Aegean, Mediterranean and Black  – the country offers coastal resorts aplenty. Then, of course, there is the climate. Temperatures in the southern Aegean and Mediterranean resorts boast average annual temperatures of close to 23oC. And if sun and sea isn't enough to satisfy one's palate, Turkey also has a unique culture, a result of the many different invasions the country has experienced pretty much since the dawn of time – Greeks, Romans and the Byzantines are just some of the great civilisations to have left their mark on the country's landscape.

With all this in mind you may find yourself asking why is it only now that Turkey is starting to turn the heads of those looking to buy property? Well, there are two main reasons. One is a change to the purchasing process in 2003 which made it easier for foreign nationals to buy a property in Turkey, especially in more rural areas, while the other is that since 1999 it has been rumoured that EU entry for the country may not be too far away – this is still very much an ongoing debate and one which is far from being resolved.

However, the talk of possible EU entry has prompted the Turkey government into improving much of the country's infrastructure as well as taking steps towards strengthening the economy. In just five years the GDP per capita has increased from $6,200 to $7,900.

All this has helped to improve buying confidence in the country, and it hasn't taken long for thousands of Brits, mainly holiday home hunters at first although investors are slowly being tempted, into looking for a suitable property in the country to buy.

"Holiday homes were traditionally popular with buyers", confirms Geri Canavan of Ilkem Construction. "But as property prices went up and up and houses doubled in value, people began to upgrade from apartments to villas and then investors started to enter the market."

Where to buy property in Turkey
It is in certain resorts located on Turkey's southern coastline where a majority of the overseas purchasing interest is centred. On the Aegean coast the area surrounding the Bodrum peninsula, along with Kusadasi and Altinkum, have been the most popular areas with overseas buyers – and where most of the initial interest in the country's property market was centred. In time, though, more people have started to look south, particularly towards the stretch of Mediterranean coast that runs from Fethiye to Alanya.

Both coasts offer a mixture of different lifestyles depending on the resort. For those looking to buy a little bit of tranquillity, resorts such as Bodrum, Kusadasi and Kas are likely to appeal, while Fethiye, Altinkum and Marmaris are liable to attract clientele seeking a more lively destination.

According to Canavan, the resort a person decided to buy a property in will depend on whether they are looking for a holiday home or investment property. "Someone after a holiday home would be better off looking in a popular tourist spot such as Alanya", she says. "However, investors should look in an up-and-coming town like Side and Balek [both on Turkey's southern coast]. In Balek developers are looking to attract golfers – there are 11 world class courses in the area."

It is apartment and villas situated within new resort developments – of which there are many in the popular coastal areas – which tend to be most attractive to buyers. Property prices in Turkey are still extremely affordable, with a two-bedroom apartment in a quality resort likely to cost from around £55,000. While some do buy older properties, and these can prove to be cheaper still, it is worth remembering that Turkish building standards on older houses will not be as high as what you will have been used to in the UK.

Investment potential
The fact that the coasts of Turkey are already established destinations for British tourists, and bearing in mind that they boast warm temperatures pretty much throughout the whole year,  it is fair to say there is the definite potential for Turkey to establish a vibrant buy to let property market over the next few years. The fact that more investors are already starting to be drawn to the property market will only see the likelihood of this increase.

There is a drawback in that there are as yet no low-cost airlines flying direct to Turkey's coastal areas. Easyjet had hoped to start a thrice-weekly service between Luton and Istanbul, the largest city in Turjey, by the end of June 2006 but at the time of writing were still waiting for final approval from the Turkish Civil Aviation authority. Charter flights, however, do run regularly to Bodrum, Antalya and Dalaman airports between May and October.

In terms of capital appreciation, the Turkey property market is currently looking healthy. An increase in the number of overseas nationals deciding to buyproperty  in Turkey has helped house prices to rise between 15–22 per cent in the past 12 month, and with interest set to continue and possible – but not definite – EU entry still on the cards for sometime in the future it is unlikely that prices have reached their peak yet.

For those who are prepared to gamble on their investment, the cosmopolitan city of Istanbul could be well worth a look, as new apartment developments start to be built in the city.

Turkey factfile:
Timezone: GMT+2–3
Exchange rate: GBP1=TRY2.84 (July06)
UK mortgage availability: Limited
Deposit required: 4–10+%
Agent's fees: 3% legal fees: 4–5%
Capital gains tax: 25%
Peak letting season: May–October
Average daily temps celcius (Jan-Dec):
11, 12, 13, 17, 21, 25, 28, 28, 25, 21, 17, 13 (Bodrum)
Average property prices: 1-bed apart: £41,609; 2-bed apart: £51,290; 3-bed villa: £105,535

Read the latest Turkish Property Bulletin ezine now FREE

Search for property to buy in Turkey

World of Property has produced Emerge, a handy 60 page guide to emerging property markets. To request a FREE copy, just Click Here, enter your address details and type the word Emerge in the Enquiry box and we'll do the rest. Or you can contact us by telephone during normal office hours on +44 (0) 1323 726040 to claim your free copy.

Article published in August 2006