And a new addition to the Foreign Direct Investment Law due to be enacted in October is expected to allow foreign companies and individuals to buy bigger chunks of property, thus boosting demand even further.
In some parts of the country so many foreigners have now bought property that electricity bills come with an English translation. Germans, who are big buyers in Turkey, are starting business and in Antalya almost a quarter of all real estate is owned by foreigners.
'Basically the British, German and Russian tourists are flooding into Turkey in ever-increasing numbers each year,' said Orhun Özdener Vahaboglu, a real estate attorney and consultant in Istanbul.
Coastal property in Turkey is rising in value as a result of increased foreign interest. 'Turkey is a growing country with a lot of potential, as the European membership is a pending issue. As soon as this is realized, we may expect that the prices will double, as has been in Romania, Bulgaria and Croatia some time ago,' he added.
Property values in Kalkan, on Turkey's Mediterranean coast, average approximately $525,000 and values in nearby Fethiya are even higher, according to information from The World Politics Review. Turkey has no national property price index so these figures are probably among the most reliable.
The downside of purchasing property in Turkey is concern about the political situation. Although Turkey opened its real estate market to foreigners in 2003, this has been met with resistance by some Turkish nationals.
The Foreign Direct Investment Law should clarify the position for those interested in buying more than two and a half acres of property. Current law also restricts purchases to a maximum of 10% of the land within a building scheme.