The Future Is Bright In Turkey.....

The Turkey property market is growing increasingly popular with British property investors due to the high rental yields achievable and the strong prospects for capital growth in the country. Take advantage of this before its too late.

At an average rental yield of 5.48 per cent, Turkey’s second home market offers a higher return than in most other traditional European holiday home destinations.

In contrast, rental yields in more established second home destinations such as France, Spain and Portugal are considerably lower at 3.85 per cent, 3.81 per cent and 3.63 per cent, respectively.

Following a series of structural reforms, implemented by the Turkish government, the country’s economy is now in a far healthier state than it was in 2001. This has helped Turkey to better cope with the global economic downturn compared with some other nations, which has had enormous benefits on the country’s property sector.

Turkish stocks rose to a record high after the central bank lowered its forecast for inflation this year, raising speculation the central bank will delay rate increases.

The main ISE National 100 index climbed 1,070.55, or 1.8 percent, to 60,578.23 in Istanbul , the highest level since at least January 1990, according to data compiled by Bloomberg. Turkiye Garanti Bankasi AS and Akbank TAS led gains.
Turkey’s central bank revised its forecast for year-end inflation to 7.5 percent from the 8.4 percent it predicted in April, Governor Durmus Yilmaz said at a news conference in Ankara in July. “The central bank foresees a “limited rise” in the benchmark interest rate next year.”
“This seems to suggest that the ‘baseline’ is built on hikes sometime in second half rather than in first half” of 2011, Christian Keller, chief economist for European emerging markets at Barclays Capital in London, wrote in a report July 2010. “The report likely satisfied those anticipating a dovish stance.”

Turkish banks are expected to report second-quarter results by an Aug 13th deadline. Garanti is expected to earn 922 million liras in the second quarter, according to the mean estimate of analysts surveyed by Bloomberg survey. Garanti reported a second- quarter profit of 765.1 million liras last year.
“Lower inflation means the central bank won’t raise interest rates, and banks will benefit from it this year,” said Altug Dag, a trader at EFG Istanbul Securities. “Improved bank earnings expectations are also adding to gains.”

It also seems that we’re all going on a Turkish holiday this year as the latest data from the Turkish Directorate General of State Airports Authority (DHMI) reveals a 24% increase in passenger numbers in the first half of 2010 compared to the same period in 2009.

Some 44.6 million international and domestic passengers passed through Turkey’s airports with the European Capital of Culture’s main airport, Istanbul Ataturk, accounting for 33% of air and passenger traffic.

It has never been easier to get to Turkey . With the crystal clear waters and golden sands of the Aegean coast for example just a 4 hour flight away, Brits are taking advantage of the raft of low-cost flights available from carriers such as easyJet, Monarch, Thomas Cook and Jet2.com.

The official data also recorded a 19% increase in international flights in the popular second home destinations of Antalya , Izmir-Adnan Menderes , Mugla-Dalaman , and Milas-Bodrum airports in the first half of 2010.

The Turkish property market has seen massive growth over the past two years, with sales increasing by 20 per cent since 2008, it has been claimed.

According to holiday experts Travelsoon, this rise has been further bolstered by the country's tourism trade, which has seen 44 million people visit during the first half of 2010.

Turkey has been thriving at the expense of Greece, with individuals able to enjoy a similar standard of living at a reduced cost.

Since EU negotiations began in 2005, it's been a lot easier for foreigners to buy property in Turkey .

Individuals wanting to buy real estate in the Mugla regıon may be interested to know that currently there are now around 14,000 British-owned properties in the location.
Investors who have bought property in Turkey will be pleased to hear that interest in the country from holidaymakers is likely to last all year round.

This is the belief of the Turkish Culture and Tourism Office, which has said that the potential for winter and summer holidays in the destination will ensure that interest remains high.

Irfan Onal, director of the UK office, claims that the naming of Istanbul as the European Capital of Culture has helped to bolster individuals' awareness of Turkey as a travel hotspot.

"With many Mediterranean cruises stopping off there and with low-cost airlines servicing it, it is expected to attract many foreign visitors this year," he adds.

The news is likely to please those who currently own property with Turkey's buy-to-let market likely to be boosted by an increase in tourist numbers.