Mon, 06 Nov 06
Based on broad economic and political analysis of the country, property investment experts Amberlamb believe the Turkish property sector is on track to become one of the top five performing European markets in terms of capital appreciation in 2007...
A series of fundamental fiscal and political changes in Turkey is set to boost international confidence and direct investment in Turkey's property market in 2007, according to Amberlamb.
The Organisation for Economic Cooperation and Development recently issued their latest report on the state of the economy in Turkey. The report strongly praised the nation for its economic recovery in recent years, for the continued policies of reform in a bid to maintain exceptional GDP growth and for the country's commitment to the implementation of further fiscal, political and judicial reforms aimed at making Turkey one of the most competitive nations in which to invest, work, do business and live.
The report highlighted the work that still needs to be done in Turkey to boost the nation's attractiveness for foreign direct investment but it indicated that Turkey was on track for making the necessary changes, lowering excessive taxation burdens and minimum wage costs to attract more international businesses to Turkey.
On course to be in Top 5 in 2007
Furthermore, as Turkey proved earlier this year with fundamental improvements to the rights of foreign buyers of property in Turkey, the nation is working to improve the rights of foreign citizens wishing to invest in land and real estate in Turkey and it is working to improve transparency in law and bureaucratic processes to this end.
The positive legal changes to the rights of foreign buyers of property in Turkey that were exacted in January 2006 have so far resulted in excellent levels of buyer confidence in the Turkish property market and over 6,000 sales of property to overseas buyers were finalised between the law change in January and July 2006 alone.
While the appetite for foreign second homes, holiday properties and investment assets remains strong and European economic and interest rate environments continue to be kind to investors, the Turkish property sector will continue to expand, says Amberlamb. The property investment experts point out that Turkey is currently on target to return in excess of 12% capital growth in 2007 putting it well within the top 5 European nations in terms of real estate appreciation potential.
EU membership on the horizon?
Meanwhile positive developments are continuing across Turkish economic and political life as the nation continues with its bid to become a member of the European Union. While everyone is aware that Turkey must overcome many obstacles and exact far reaching changes if it is to achieve accession, no one can doubt the nation's commitment nor the positive economic effects that potential entry has already reaped.
Turkey has become one of the strongest recipients of foreign direct investment into its construction and property industries from GCC nations with the largest GCC FDI commitments having been made following a decision earlier this year to allow Turkey to begin talks aimed at structuring the nation ready for EU entry.
In raising Turkey's profile during the beneficial talks with the European Union, the Turkish government not only won strong financial support from the GCC group of countries it also succeeded in promoting Turkey as an interesting, diverse, approachable and welcoming nation among the international travel and tourism community. As a result the World Travel and Tourism Council recently responded to dramatic developments in the tourism market in Turkey and released exciting predictions for the country suggesting that in the next decade an already healthy tourism market will double in terms of economic activity. This would in turn result in strong GDP growth, the creation of jobs in Turkey and the attraction of exceptional levels of foreign direct investment, Amberlamb predicts.
All indicators are that Turkey is on the right path to enjoy a journey of positive economic expansion and international acceptance and as a result it is one of the most exciting emerging nations in the world for property investors right now. Turkish property offers investors a low entry price, long-term capital appreciation potential and immediate and strengthening rental appeal therefore it has made it into the top five on Amberlamb's 2007 property investment watch list.
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