Turkish delights

Popular with holidaymakers, Turkey is becoming a destination to watch on the global property investment map. But be prepared before you buy.

A recent discovery near the city of Konya in Turkey has unearthed some of the oldest real estate in the world. Yet the country has come a long way from these Neolithic ruins: grand villas and houses now dot its shorelines.

Author of Buying in Turkey Dominic Whiting writes that these properties are attracting global interest and notes, "An increasing number of Dubai-based expats are looking at Turkey as a place to buy and invest. We've had one client who was looking to buy come over here in winter because of the cooler weather."

No surprises there. Turkey's temperate climate, greenery and relaxed Mediterranean vibe make it a welcome break from the heat and bustle of Dubai.

Fast track development
Despite a brief slowdown in May of this year, when there was a temporary ban on the issuing of title deeds to foreigners while the country amended real estate laws (article 35 of the Tapu Act) in contravention of the constitution, interest in Turkey's property market has picked up considerably.

"It was kind of a chicken and egg thing. Turkey was a country that had property with exceptional value. People started to discover this, so it received a lot of coverage. With the increased coverage and interest came increased prices.

"Now the market has started slowing down and has matured slightly and there are a lot better products around. More and more developers are building for European buyers," writes Dominic.

Ongoing investments in infrastructure, new mortgage laws and low interest rates have placed Turkey in a prominent position in the buyers and investors market again.

Alex Andjel, director of Bridgehouse International, a property investment and development company, says, "It's very easy to purchase property in Turkey and there are no restrictions on foreigners owning properties in the agreed areas."

Fishing towns have been transformed into large resorts with modern leisure facilities, restaurants and a pumping nightlife. The opening of international hotels has attracted a large number of holiday makers to its shores.

Turkey's recent award of 'Best Golf Destination of the Year' in 2008 by the International Association of Golf Tour Operators has also brought in the golf lovers with their families in tow.

This influx of tourists has not only boosted the economy, but the property market in creating a strong buy-to-let possibility.

Swinging low
Housing prices are the main attraction in Turkey. The country offers prices that are a good 20-25% below housing prices in other established European markets.

For the price you'd pay for a small villa in Spain, you can expect a luxurious villa equipped with five-star facilities.

Accessibility is also a factor. There are 19 flights from Dubai to Turkey everyday, and more from Sharjah and Abu Dhabi. Istanbul and Ankara are also linked to most major destinations.

Finding an agent, however, can be tricky and Andjel advises caution. "Every Turkish landowner thinks they are a property developer and so I'd always say go with a firm with a proven track record and where they are focusing on building resorts, rather than stand-alone houses on plots of land with no amenities," he says.

"Often the resort concept offers clients the ability to rent their property out at solid yields and have their property managed for them. This appeals to the larger audience when it comes to investment and resale."

Other buyers problems include poor infrastructure in certain areas but despite the occasional hiccup, Turkey is a superb place for a getaway home. Steeped in history and culture, with sumptuous food and a leisurely pace, a buy-to-let property here could add to the hip pocket too.

Tips for buying

Buying in Turkey is relatively straight forward. There are a few things to watch out for, though.

1. When doing your research, read a range of guidebooks on the region so you have an overall idea.
2. Look out for infrastructure. Many resorts have grown so quickly that the infrastructure has not kept up.
3. Be careful where you choose your property. You can only buy property within a zoned municipal area, which means all cities, towns, coastal resorts and areas around them. You can't buy property or land in rural areas, within areas of strategic military or national importance, or more than 2.5 hectares of land.
4. Appoint a solicitor who has represented foreign clients and has a sound experience of the Turkish property market. They will iron out the process
   and inform you of any problems that might crop up.
5. Be aware that the buying process takes longer for foreign buyers as official permission is needed from the military authorities and they have to subject themselves to an official investigation process which takes six to eight weeks.

Hot spots

Kalkan Situated around a natural harbour at the foot of the Taurus Mountain, this area boasts breathtaking views of azure seas, fishing boats and whitewashed villas, remnants of the Ottoman era.

The area, which has experienced a growth spurt in recent years has one of the best selection of villas on the coast.

Altinkum Popular with European and Turkish tourists for it sandy beaches and its proximity to Bodrum airport.

The town currently has over 8,000 foreign property owners, who flock there for the seafront lined with restaurants and bars and summer leisure activities. Residents, however, have experienced drainage problems in low lying areas.

Bodrum This is one of the country's most popular and cosmopolitan resorts with interesting sights, good shopping and excellent nightlife. It is also home to the 4th century Mausoleum at Halicarnassus.

Behmian This area was once a retreat for Turkish artists and intellectuals and is now renowned for its plush bars and clubs.

Calis An earthquake in 1957 means that few old buildings remain in the area. The area has affordable property and a long stretch of seashore.

Cesme The area has been largely ignored by foreign buyers but remains popular with the Turkish. Cesme boasts first class windsurfing and some attractive property.

Dalaman A new golf course that is currently under construction is attracting a lot of interest from developers and buyers.

The area boasts beautiful countryside with an agricultural area abundant in citrus fruit, vegetables and cotton. As well as a golf course, there are plans for a new marina, spa centre, hotels and residential areas.