Early economic and tourism indicators point to a bounce-back in Turkey
A buoyant property market combined with bullish economy, weak currency and rebounding tourism industry are creating attractive conditions for foreigners who invest in Turkey this year, said Spot Blue International Property in March.
Here Spot Blue International Property outlines five key reasons the outlook is positive for homeowners and the housing market in Turkey in 2018:
Turkish property sales to foreigners increased 25.7 per cent in January compared to the same month in 2017, according to Turkish Statistics Institute (TÜİK). During that month, 97,000 properties were sold in total across the country representing a slight year-on-year increase, with 1,742 of these bought by foreigners. Istanbul remains the top destination for foreign property-buyers, attracting 545 sales in January, with the Mediterranean resort of Antalya second favourite (424). Foreign sales in Turkey are spearheaded by investors from the Gulf countries, with Russians and European buyers behind them. This upward trend is predicted to continue.
Turkey’s economy is growing faster than any other G20 country, according to the most recent Turkish Statistical Institute data for the 3rd quarter of 2017, which saw the country record GDP of 11.1 per cent. Meanwhile, among other G20 countries, China registered 6.8 per cent growth during this period and India 6.3 per cent growth.
Turkey is bouncing back as one of the world’s most popular tourist destinations. In the first month of 2018 the number of foreign visitors to Turkey rose 38.48 per cent compared to January 2017, which saw a 9.8 per cent drop. Turkey is anticipating a record total of 38 million tourists this year, compared to 32.4 million last year, according to the country’s Culture and Tourism Minister Numan Kurtulmus. Positive signs include European tour operators, including Thomson and Thomas Cook, increasing their capacity for packages to Turkish resorts this year, while the German and Russian markets are expected to be especially strong too. Kusadasi, which receives cruise ships and with its lively town and sandy beaches is a popular second home destination, in particular should benefit from the growing tourism levels. The Turkish Government remains determined to hit its target of 50 million tourists a year by 2023. To help achieve this, it is continuing to offer cash incentives to charter airlines that bring tourists to the country and implement measures to facilitate hotels renewing land leases.
Turkey’s airlift capability continues to rise year-on-year, as does the country’s role as a hub connecting East and West. In January this year, the number of passengers passing through the country’s leading airports increased 29 per cent year-on-year to 14.74 million passengers, compared to 11.47 million last year (Anna Aero). If this rate of growth is maintained, Turkey could expect to handle around 230 million passengers in 2018. Last year 192.34 million passengers travelled through Turkey’s leading airports, a rise of around 11 per cent on 2016 and a new record. Meanwhile, the global aviation industry will be focusing on Istanbul later this year when the city’s new airport, expected to be the largest in the world, is scheduled to open in October, becoming the new operational centre for the national carrier Turkish Airlines.
Turkey’s currency, the Turkish Lira, continues to fall against leading currencies, including Sterling, the dollar and euro. This makes day-to-day living increasingly affordable to foreign residents or tourists with income or funds in a foreign currency. The Post Office’s recently published Worldwide Holiday Costs Barometer ranks Turkey as the seventh cheapest destination anywhere in the world and fifth cheapest in Europe to enjoy a holiday.
For further information about buying or selling property in Turkey please contact:
Spot Blue International Property
Tel: +44 (0)20 8339 6036