The Rise and Rise of Turkey

With property markets around the world feeling the pinch a little this week, thanks in no small part to the fluctuations of slumping US real estate, expert eyes around the world have turned to Turkey, with property investors being encourage to diversify the location and range of their portfolios in order to spread risk and maximize return.

According to those in the know, Turkey currently offers one of the best low risk investment opportunities out there, being under developed and therefore attractive, price-wise. Recent general elections in the country set off butterflies in the stomachs of some investors: the pro-Islamist Foreign Secretary Abdullah Gul was elected President much to the dismay of a staunchly secular, powerful military. But these wobbles turned out to be short-lived, Gul promising to maintain and increase his Justice and Development Party’s undoubted success and popularity.

And experts are not just backing Turkey’s residential market. While the private investor could see healthy capital gains in investing in a second home or buy-to-let, institutional investors are being advised to look to the country for new commercial targets, the cosmopolitan city of Istanbul figuring highly. Turkey’s Foreign Minister Ali Babacan has been reported as saying that the country’s programme of economic reforms would see the country become increasingly viewed as an ‘asset’ to the EU, hinting at the country’s unrelenting desire and determination to reap the rewards of EU membership and confirming a commitment to reform and stability.

This comes on the back of positive new tourism figures from the Turkish Statistical Institute stating that the number of visitors to Turkey during the month of August 2007 increased by 16.5% over the same period last year, namely through increased airway and road use, visibly demonstrating the impact new low cost airlines routes can have on a country’s tourism fortunes. Over 63% of visitors came from Germany, Russian Federation, United Kingdom, Iran, Bulgaria, Netherlands, France, Italy, Ukraine and Belgium, confirming the Turkey’s status as a popular mainstream holiday destination and second-home location of choice amongst Europeans today.