Turkish property has increased in popularity

Turkish property has increased in popularity over the past year, while Morocco, Cyprus, Portugal and Italy have also shown significant growth as property hotspots Turkish property* has soared in popularity more than three-fold over the past year amongst British investors, research from Moneycorp’s Foreign Focus Index reveals. The number of enquiries relating to buying property in Turkey received by Moneycorp’s currency dealing desk has increased more than three-fold from 2006 to 2007. Established locations such as Istanbul, Antalya and Bodrum are still in vogue, as are other cities including Izmir, Ankara and Hatay.

And both the short and long term prospects for the Turkish property market continue to be positive. With prices in the country much lower than in the EU on average, investors can bag themselves a bargain and forecast profitable returns on their financial outlay, especially as Turkey’s negotiations for EU membership continue.

After a serious crash in 2001, the country’s economy is now well on its way to a full recovery. An International Monetary Fund backed restructuring programme. cleanup of the banking system, Central Bank independence, closure of extra budgetary funds and tough fiscal policies have all led to inflation dropping, strong economic growth and the Turkish Lira regaining its value.

Marc Morley-Freer, from Moneycorp – this year’s sponsor of the A Place in the Sun Live Exhibition – said: ‘Undeniably, with the credit crunch and reports of financial doom and gloom, the global property market as a whole has seen a downturn over the past six months. At Moneycorp, however, we are still receiving a high level of enquiries relating to buying property in emerging markets like Turkey, Morocco and Cyprus as well as ‘lifestyle’ markets such as France, Spain and the USA.

‘With any type of investment comes risk, and we help our clients minimise the risk of falling victim to unfavourable exchange rates. By providing competitive exchange rates and market tools that allow clients to lock into favourable rates, customers can save thousands on their purchase. Plus each client has a dedicated dealer to inform them and provide expert guidance every step of the way.’

Morocco has also seen a marked growth in property purchase enquiries from Brits, from an average of 36 per month in 2006 to 60 per month in 2007. Low cost airlines including Ryanair and EasyJet have recently opened routes to Marrakech, making the country increasingly accessible from the UK and, therefore, attracting British investors. In recognition of its increasing importance on the tourism and investment map, the Moroccan government is currently spending over $12 billion developing the country’s supporting infrastructure. New roads, rail links and a massive airport upgrade are all underway.’

Interest in Cyprus has similarly soared, from an average of 108 enquiries per month in 2006 to 150 per month last year – an increase of more than a third. A key driver of this is the ascension of the Euro as its currency on 01 January 2008. This significant change to the nation’s economy is expected to bring many benefits for investors, which will almost certainly boost demand for property.

Ken Pritchard, from Brooklands Exhibitions, organiser of A Place in the Sun Live said: ‘Buying abroad can be a complicated process. It involves finding a suitable investment, doing thorough research into that country’s legal and tax practices and finding experts who can guide you through your purchase. Investors needn’t be taken by surprise, however.

Help is available to enable people to plan effectively. Those who visit this weekend’s A Place in the Sun Live – the UK’s largest overseas property exhibition at ExCeL London will have access to all the information and advice they need to ensure they are successful in purchasing their dream place in the sun.’

For more top tips and advice on how to get your foot on the foreign property ladder pick up a copy of Moneycorp’s Foreign Focus Index.

*The issuing of title deeds to foreign buyers has been temporarily suspended in Turkey while two controversial clauses in the country’s property law, which relate to property sales to foreigners, are amended. Investors waiting to complete on a property will now have to wait until the new law is passed (by 16 July 2008).

The amendments will have no impact on the vast majority of British buyers – who are purchasing property or land in officially zoned areas in and around Turkish cities, towns and resorts. The changes in legislation will only affect those purchasing rural land with a Turkish company.Homesworldwide.co.uk