According to Spot Blue International Property, continuity is important for helping Turkey to move beyond its status as a mature emerging market. ‘Erdogan, who first became prime minister in 2003, and his party can now continue with schemes aimed at attracting foreign investment and advancing the country on the international economic stage,’ said director said Julian Walker.
He pointed out that the government is committed to driving key infrastructure projects in and around Istanbul, which will not only improve the lifestyle of Turks but also make the city more attractive to foreign investors.
Examples include last autumn's opening of the Marmaray rail tunnel connecting the European and Asian sides of Istanbul and a third bridge over the Bosphorus which will be the widest of its kind in the world when it is completed in 2016.
There is also an extension of the Istanbul underground and the construction of Istanbul's third airport which is set to be the world's largest. According to the Turkish Ministry of Finance, foreign direct investment (FDI) into the country in 2013 totalled $12.686 billion.
Walker pointed out that Erdogan continues to be instrumental in opening up Turkey's real estate market to a wider international market and maintaining healthy investment conditions. A pivotal development was the introduction of changes to the reciprocal law in May 2012, resulting in increased numbers of investors from the Middle East and Russia.
According to Turkey's Statistical Institute (TurkStat), foreigners bought 12,000 properties in Turkey during 2013, worth an estimated $3 billion and representing a 15% year on year increase. The southern province of Antalya and Istanbul attracted the highest number of sales to overseas buyers.
Walker also said that in May 2013 Turkey paid off its final $412 million instalment of debt to the International Monetary Fund (IMF), making Turkey free of any foreign debt for the first time in more than a century.
The firm has also found that properties in more rural areas are also proving popular with overseas buyers. ‘Like anywhere, take a short drive inland from one of Turkey’s beach resorts and you’re in another world. The foothills behind Fethiye, for example, are gaining popularity and there are some real gems there, ideal for buyers looking for their own slice of rural Turkey,’ Walker explained.
An example is a British couple, Margaret and Jonathan Machin who bought a plot of land in the village of Sahil Ceyland and built their dream villa with a large pool and three acres of land, dotted with 150 olive trees.
‘After holidaying in the Fethiye area, we decided we wanted a private bolt hole in the countryside, which we could use with our son and grandson,’ said Margaret, from the couple’s UK home in Somerset.
They bought the plot for around £60,000 and commissioned a local building firm to knock down the existing old farm buildings and build the new villa. They made the purchase through a Turkish company which has permits for the property to be run for tourist purposes. They are now selling due to family commitments.
