Despite fears that the AKP would return to their roots of Islamic-style government, party leader Tayyips Erdogan has portrayed the AKP as a moderate and centrist party with aims towards justice and development, especially within a European and international arena. During the five years the AKP have been in power, the property market in Turkey and economy in general have boomed due to Erdogan's free-market policies and economic reforms. Inflation has fallen from around 100 per cent at the end of 1997 to single digits, rates of unemployment have dropped and sustained GDP growth is expected to reach 6 per cent in 2007/08 according to a recent OECD report. 

"The re-lection of the AKP is most definitely the right decision for the future of Turkey, its long-term economic growth and the property market in Turkey," says Sean Gillic, Managing Director of the IPI Group. "We have witnessed capital appreciation in Alanya City of 13-15 per cent over the last five years and year-on-year increases in the number of UK purchasers in property in Turkey. Of course, there have been some who have held off purchasing until the results of the election were known, but the liberalisation policies of the AKP should dispel any economic concerns over Turkey's prospects." 

Colin Bentley from Oruc International is also optimistic that the re-election of Erdogan's party marks the beginning of another five years of economic growth for the country. "International investors like Erdogan's free-market policies and they will welcome the result as a further five-year term opens the doors to huge international investment opportunities," he says. "The same holds true for the holiday homebuyer and smaller investor within the property market in Turkey. Turkey is a happening country rapidly commanding respect and building status on the international stage."

Turkey is attracting substantial private and corporate international funding, with international companies such as Vodafone, Microsoft and the Chinese Railway Engineering Group (CREC) vying for the country's highly educated, young population – more than 56 per cent of the population is under the age of 30.

The AK party is also striving to reach the standards that EU membership ­– certain to have a positive impact on the property market in Turkey – requires. Although whether Turkey will enter the EU is yet to be seen, the election results demonstrate the Turkish people are choosing a system with this aim in sight. The government of Turkey is already relaxed restrictive laws surrounding the property of Turkey's religious minorities, Greeks, Armenians and Jews, and have been introducing reforms that 'scrap' legal restrictions on freedom of speech and grant Kurds more cultural rights.

"All policies promised by the previous government had been delivered," says Jayne Schofield from Turkish Connextions. "Improvements have also been made to the health and education services and large amounts of money are being ploughed into tourism, development of golf courses and marinas to attract more tourists."

Indeed, over the last five years major infrastructure projects have begun to take shape including a host of quality tourist as well as business facilities, 50 new international championship standard golf courses, to be completed by 2050, numerous new marinas and thousands of new property developments in Turkey.

The Turkish government's ambitious plans to double the number of tourist visitors by 2010 are increasing the country's appeal and pushing up property values, with annual price increases of 10-25 per cent expected in the main resorts.

British overseas property buyers have been quick to catch on to the investment and holiday-home opportunities property in Turkey now provides. British buyers are now the second-largest group of foreign property owners in Turkey, with 12,000 properties in their possession according to the latest Turkish government statistics. Germans are the most numerous foreign owners of property in Turkey, accounting for almost a quarter of the property bought by non-Turkish citizens, due to the long-standing relationship and history of migration between Turkey and Germany.
 
"Like Spain 30 years ago, the low price of  property in Turkey is attracting more than just the holiday makers with Brits now lining up to buy holiday homes there," says Mark Bodega from currency specialists HIFX. "The Southern resorts of Fethiye and Marmaris were first in on the action but it seems we're now turning our attention to the Northern Bodrum and Cesme peninsulas"

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 less restrictive. In addition, the Turkish government is offering fantastic interest rates to people buying property and are investing in all important infrastructure improvements such as roads and motorways to help the economy move forward."

For those interested in owning a piece of the property market in Turkey, Cahit Complex (pictured) is a new-build apartment complex situated in a central location near Altinkum beach. Property for sale includes a selection of two/three bedroom apartments, and four bedroom duplexes. All apartments have large terraces and duplexes have roof terraces. The apartment block pictured also has a lift and cental satellite system, jacuzzi in the duplexes and a large swimming pool. Prices for apartments start from £41,000 and duplexs from £65,000 through Turkish Connextions.

An individual house with separate guest house is on the market in Bodrum. The main house features two bedrooms with en-suite bathrooms, a pool and terrace with sea-view with the guest house consisting of a lounge/kitchenette, bedroom and bathroom. Priced at 480,000 euros (approximately £320,000), it's available through Houses for Sale in Bodrum.

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Related articles about property in Turkey:
Turkish property market update
Regional reasons to buy property in Turkey

Article first published 27 July 2007