Turkey:

Hotspots

Property Investment Hotspots in Turkey

Contents

Alanya

This seaside resort lies in the Mediterranean region of Turkey and has close to 400,000 residents of which 10,000 are Europeans. The city has become an established tourist hotspot accounting for up to 9% of the country's tourist intake and 30% of the foreign purchases of real estate giving it promising investment prospects. With entry levels as low as €50,000, investors purchasing property in the near future and joining the 17,000 overseas investors who have already bought here should enjoy healthy returns. Investors should also be made aware of plans to build a ski resort to accommodate 3,600 skiers a day just 40km from Alanya. Damlataş beach is a point of interest, famous for its dripping caves and fantastic display of stalagmites. Cleopatra Beach is, according to locals said to have derived its name from being part of Mark Antony's dowry to the Queen of Egypt.

Bodrum

Facing the Greek island of Kos, Bodrum is a Turkish port town and registered international centre for yachting and tourism. Offering a blend of artistic and tourist based attractions there is plenty of culture within this town. The international marina draws in many seafarers and boating fanatics and diving courses for those of all levels are available. The area is popular with Turks and Europeans looking to buy holiday and second homes and already has over 3,000 British families based there.

Dalaman

Dalaman lies on the south western coast of Turkey and has its own international airport serving tourists to the surrounding area. Agriculture in citrus fruit plays an important role in the local economy and development in the area's infrastructure and airport has aided accessibility. There is currently construction underway on a tunnel to connect the town with Gocek, another nearby town. There are also plans for a new marina and golf course and investment is increasing in the area. Dalaman has its own natural beach which has yet to become overly commercialised and the town has several shops, bars and restaurants.

Didim

Situated on the western coast of Turkey, Didim is another coastal area that is showing increasing tourist interest. This town has great historical significance and is home to the ruins of the Temple of Apollo. The area has warm winters which aid its tourism industry and it is generally a very quiet resort ideal for families. There is undergoing development in the area to create a third beach and open a marina which is expected to influence an increase in property prices

Fethiye and Kusadasi are also tipped to be good holiday investment hotspots. These coastline towns are not necessarily anymore attractive than others but offer a good infrastructure and are established tourist destinations with an existing expat community and regular international flights. Although not new to the knowledgeable Turkish property investor, Kusadasi has recently come to the fore as a promising destination. The most northern Mediterranean resort, it admittedly does not offer the cheapest property prices but is loaded with potential. Three bed properties can be bought for £80,000 to £150,000.  

Rental yields are high on the coast averaging 13-16% during the summer season.

Ankara and Istanbul

Whilst the coast offers numerous attractions for the second home owner the real investment opportunities lie closer to the capital, Ankara and the historic city of Istanbul.

Although Ankara is the second largest city behind Istanbul, it is the centre for government in Turkey and is an important base for industry and commerce as it lies at the centre of the country's road and rail links. The city also caters for a thriving student body with several universities and colleges.

Istanbul is a hugely important centre of historical culture across Turkey and the world and has been awarded the position of European Capital of Culture for 2010. The city is the financial and industrial centre of the country thanks to its land and sea trade routes and accounts for 55% of all the country's trade. A large boom in population has led to rapid expansion over the last decade and the city thrives from its tourism.

Rental yields in both Ankara and Istanbul can be as high as 10% with houses in the suburbs of Ankara even achieving yields of around 12%.

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