From January 2008 foreign buyers will be able to apply for a Turkish mortgage thanks to a new mortgage law encouraging foreign investment in the country's property market. Previously foreign buyers financed property in Turkey through equity release on their property in the UK, a cash buy or a Euro mortgage, offered by just a few banks with high interest rates and difficult qualification rules.

Despite rates for the new Turkish mortgage being higher than the Euro mortgage, at 17.5 per cent, this new law should open up the country and its Tourist Development Regions to foreign investment.

Among the Turkish government's plans to open up the country and the Turkish property market to foreign tourists and investors is the development of new airports and terminals.

Our Home Abroad is currently marketing the Peninsula Village, an off-plan development a 45-minute drive from the new Izmir International Airport, which has been developed to meet with the increased flights from the UK, Ireland and other European countries.

"The Turkish government has recently invested considerable sums of money into roads and the infrastructure in and around Izmir, Cesme and Mordogan," says Ian Clarke, Director of Our Home Abroad. "This investment was essential for what will without doubt become one of the most rapidly expanding areas over the next five years.

"With large areas already zoned for development the years to come will see massive changes as this tourist area evolves. Good rental and equity growth are almost guaranteed if prices in Bodrum are anything to go by and property prices doubling or even trebling over the next five years is likely."

Peninsula Village is a five-star gated community with its own marina, a nine-hole pitch and putt course, communal pools with wave pool, tennis, restaurants, bars and a supermarket. Investors can choose from one- and two-bedroom apartments or two-, three- and five-bedroom detached villas. The first phase of 100 villas is due for completion in April 2008, with one-bedroom apartments starting from £16,900 and two-bedroom villas from £35,842.

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Article first published 27 June 2007