With Turkey's parliament officially halting the presidential election process that prompted a political crisis, and fear that the election of new French President Nicolas Sarkozy could halt the opening of further EU membership negotiations with Turkey, what's the outlook for the Turkish property market, asks Jo-ann Hodgson?

Last Thursday Turkish Parliament formally declared an end to the presidential voting process after Foreign Minister Abdullah Gul, of the AK party, announced that he was dropping his bid for president. "As there is no presidential candidate, there is no possibility of electing a president. For this reason, the voting has been cancelled," Nevzat Pakdil, the parliament's deputy speaker told the chamber in televised remarks.

Turkish Secular parties had feared that if Gul became president – in the elections brought forward by current Prime Minister Yayyip Erdogan – the Islamic-rooted AK party could challenge the country's secular system and the separation of state and religion, a claim the government firmly rejects. Despite these latest political developments, Turkish property agents are still optimistic about Turkey's accession to the European Union, the work towards which has been one of Prime Minister Erdogan's main focuses, and the country's economic progress.

Ramazan Oruc, from Oruc International said: "Having delivered Turkey's most successful term of government in recent times, Prime Minister Erdogan has succeeded in bringing the Turkish economy firmly under control; he has opened the door to major international investment and moved the country to final accession to the European Community. A record Prime Minister Blair might be proud of. These are exciting times for the Turkish people and those around the world working with us."

Oruc continues: "In any event, Erdogan's AK Party enjoys a huge popular majority with the people, which will mean he will win the election whenever it is called. With a second term of office, Erdogan will be well positioned to deliver still more political stability, economic growth and social reform. His continued success will raise both his and Turkeys growing international reputation."

The election of Nicolas Sarkozy as France's next President has also dealt a blow to those working towards Turkey's EU accession. Sarkozy shares German Chancellor Angelina Merkal's view that Turkey should be offered a privileged partnership instead of full EU membership.

However, EU Enlargement Commissioner Olli Rehn on said on 8th May that new talks with representatives in Turkey's capital Ankara could begin within weeks.

Many Turkish property agents are confident that the country is currently in a stable enough position to prosper with or without rapid EU membership.

"It does not matter much about EU membership as the top companies in the world are already investing huge sums in the country," says Charles Bentley, also from Oruc International. "As a country, Turkey has also emerged as a mainstream market with a growing Tourist industry that is feeding the real estate sector."

Eddy Crompton Director of Realpoint Property, which markets Turkish property, adds: "According to the BBC 'Turkey's GDP per head is not much lower than that in Romania, a recent EU member. Rates of both unemployment and inflation in Turkey have fallen to high single digit figures – quite an achievement, given that it is only five years since Turkey had an inflation rate of 70 per cent'."

He continues: "Foreign investors are now diving into a range of sectors, from telecoms to steel to banking and with land reform implementations in 2006; this has made the purchase and development of land more restrictive. All of this, points to a positive long term future for the country, with their recognition that tourism will continue to be very important for the economy which is also reassuring for buyers of holiday homes."

Turkish property which is currently available include one-bedroom apartments starting from £37,000 in Kalkan, marketed through Oruc International. The apartments actually sleep four and are situated within the resort of Patara, enjoying the benefits of a location known as the Turkish St-Tropez.

Sarakiz Villas, a selection of three and four bedroom villas with private swimming pools are also on the market at £110,000 through Real Point Property. Located in Greater Calis they are a few kilometres away from Fethiye and a few minutes walk from the beach. Each villa comes with a five year building guarantee.

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Article first published 10th May 2007