Currency exchange making Turkish property more attractive to overseas buyers
The current political turmoil in Turkey is likely to bring opportunity for property investors in the short term as the fall in the value of the Turkish Lira makes buying real estate attractive, it is claimed.
Buyers in currencies such as the Euro, the Pound and the Dollar can get more for their money, according to Istanbul based property firm Universal 21.
‘As we saw in early 2013, unrest and political upheaval can result in a loss of confidence amongst overseas investors in the short term, such as the protests which took place in Gezi Park in early 2013,’ said Adil Yaman, director of Universal21.
‘Naturally, some investors who remember the political problems experienced in Turkey in the past fear a return to the bad old days. This actually creates an opportunity for investors who think long term and believe that the progress made by Turkey is sustainable and on the right track,’ he added.
The firm believes that there has never been a better time to invest in property in Turkey and with this month's 6.3% fall against the dollar property prices will be lower in some currencies than they were this time last year making Turkish property even better value.
The current political problems in Turkey, which were caused by a corruption scandal, have put Prime Minister Erdogan under pressure and the Turkish Lira is expected to be affected for some time until the situation in the country improves.
‘The uncertainty at the moment is likely to have an impact on short term investment in the country, however investors should remember that property investment is for the long term. The fundamentals for a strong and growing property market remain in place,’ explained Yaman.
He pointed out that housing demand resulted in growth in the construction sector in 2013 and there remains strong interest from investors from the Middle East, the UK and Russia in Istanbul property.
He added that the modernisation of existing housing stock, the transformation of urban areas and the multi-billion pound investment in transport and infrastructure provides a glimpse into the long term potential of investment in Turkish property.