The Turkish business world welcomed the new incentive package, which was announced by the Prime Minister, with excitement as it has raised hopes that the markets will take a deep breath amid the uncertain atmosphere caused by the ongoing global financial turbulence.

Nihat Ergün, Minister of Trade and Industry Speaking to reporters in Ankara said that the government will address investments that are currently under way in a new stimulus package. The minister added that a number of investment projects had been started prior to the announcement of a recent incentive package and were still in progress. Entrepreneurs said that Turkey, which has been indirectly affected by the crisis as the consequence of a spillover effect, should manage to free itself from the grip of the global economic meltdown.

A previous stimulus package that took effect in March saw many consumers reach for their savings rather than bank loans, which remain costly despite huge rate cuts and now the government recently embarked upon another stimulus package, this time focusing on boosting investment. With the new package, entrepreneurs will have a corporate tax rate of between 2 and 10 percent, depending on the region they invest in. The government recently divided regions into four categories, based on their current economic development level and possible investment opportunities.

With regard to reactions from the business communities concerning the new package, Mr. Nihat Ergün said many welcomed the plan, calling it satisfactory. “There are some remaining details we have to iron out, but work is under way to this end,” he said.

Leading figures from the Turkish business world said they welcomed this package. The president of the Istanbul Chamber of Commerce, Murat Yalçintas, described the package as “extremely coherent and inspiring.” He added that the government was taking the right step against the crisis and that small businesses will be relieved by the incentives introduced in the package and also the new package will inspire confidence and improve morale in the domestic markets., Hazim Sesli, The president of the Young Businessmen's Association of Turkey assessed the package is very positive and also “encouraging” for the future of the markets

Banu Kıvcı Tokatlı, Finans Yatırım chief economist, said the new incentives will provide support for the real estate, auto and home appliances sectors, which were battered by the crisis more than any other sector, preventing the recession from becoming deeper.

Labels: Economy

Despite the disruption of the global economy affecting Turkey's investment climate, overseas investors who invest in Turkey will not lose out, but will instead make considerable profit, according to reports.

According to Deloitte Turkey’s traditional Venture Capital Research, 92 percent of survey participants said they will look at acquisitions within six months, while 88 percent said they have no plans to withdraw from Turkey. Anthony Wilson, Deloitte Turkey Corporate Finance – Partner in charge said that investors still maintain their long-term confidence in establishments located in Turkey. As soon as this environment of uncertainty dissolves, they will obviously restart investments.

The country, running a trillion dollar GDP based on purchasing power parity, is the fifth largest economy of Europe after Germany, UK, France, Italy and Spain, respectively. Recently there has also been an increase in Turkey's permanent business activities. According to the Turkish Treasury's report, foreign direct investments from the Middle Eastern countries have jumped from USD 495 million in 2007 to USD 1.9 billion in the 2009. In addition, Middle Eastern companies have established 471 new companies in Turkey throughout that time period.

Prime Minister Recep Tayyip Erdogan sounded confident as he was unveiling a multibillion lira stimulus package as Turkey's market is rallying on encouraging news from domestic fronts and international markets. In a vote of confidence in the Turkish economy, the Japan Credit Rating Agency (JCR) has affirmed its BB-rating on Turkey's foreign and local currency long-term senior debts. "The outlook of the ratings is stable," the statement said. The report added, however, "A new standby arrangement with the IMF is expected to play an important role in improving the country's international confidence, especially when the economy deteriorates sharply."

Labels: Investment-property, Market-Trends

The Turkish Government rolled out plans to secure market demand and recently decided to focus more on the Middle Eastern tourism market to strengthen mutual relations in political, economic, cultural and tourism sectors.

Representatives from the Riyadh Chamber of Commerce and Turkish tourism agencies came together to discuss mutual tourism relations in a meeting organized jointly by the Turkish Hoteliers' Association (TUROB) and Turkish Airlines (THY) in Riyadh. Majid al-Hokair, chairman of the al-Hokair Group and vice president of the Riyadh Chamber of Commerce, presided over the meeting. They discussed the problems facing tourism sector relations between Saudi Arabia and Turkey and Tourism between the two countries is expected to receive a considerable boost with both countries offering common cultural values and appealing tourist attractions.

Earlier, Turkish President Abdullah Gul said that Turkey's relations with Saudi Arabia, based on mutual respect, dialogue, joint history and cultural values, have reached a pleasing level. "Saudi Arabia is the biggest country in the Gulf region and they plan to make infrastructure investments worth 200 billion Euros by the year 2010. There could be many projects for Turkish businessmen, especially contractors, in Saudi Arabia," Gul said. The trade volume between the two countries currently exceeds USD 5.5 billion and the Turkish government expects this to increase to USD 10 billion by 2010.

"Turkey is not the old Turkey. We have changed our investment and trade regulations, providing Turkish and foreign investors equal rights," the president said and praised Saudis investing in Turkey.

Dr. Salih Özer, head of Turkey's Riyadh Culture and Tourism Office said Turkey had opened the tourism office in Riyadh in 2006. "The number of Saudi tourists visiting Turkey has risen since then," he said, noting they saw a 40 percent increase in 2008 over the previous year.
According to Cihan news agency reports, Salih al-Humeyyid, from a tourism agency in Riyadh said "Thanks to the Turkish tourism agency in Riyadh, the number of tourists from Saudi Arabia to Turkey increased remarkably. We expect this trend will continue this year, as well."

Labels: Tourism

Turkey property is set to become even more popular with British buyers, as Moneycorp's prediction for Sterling to strengthen against the Turkish Lira continues to come true.

Turkish property is now 19% cheaper to British buyers than it was in April. This will cause a further increase in the popularity of Turkish property with British buyers, 1 Pound sterling has risen from being worth 2.30 Lira to 2.35, where Moneycorp said it may peak or stretch to 2.40.

"In the long term, we expect the Pound will get stronger, certainly climbing back up to 2.35% and possibly even to 2.40%," the Moneycorp analyst concluded. This growth has far exceeded the predictions of Moneycorp, right now one British Pound will buy 2.50 Turkish Lira (rounded up). Though Sterling has recently been strengthening against the Euro, it has been weakening against the Turkish Lira; this is expected to turn around in the next few months, making Turkey property even less expensive to British buyers. Les Calvert, director of property-abroad said "a rise of even 10 points can have a massive impact on the price of properties to British buyers."

Julian Walker, director of Spot Blue, specialists in Turkey property commented: "Such a rise in Sterling’s value against the Turkish Lira is likely to make Turkey property even more attractive to British property buyers."

According to major UK portal Property Abroad.com, Turkey property has been 4th most popular with the thousands of British property searchers received by the portal. The emerging markets analyst Julie Liddle told that it had gone from being 8th most popular in the first quarter of 2008, to being 5th most popular in Q1 2009 before jumping to 4th most popular in April.

Labels: British, Turkish-property

Antalya in Turkey has been identified as a good destination for investors looking for a stable place to buy property during the global economic downturn.

According to Hurriyet .com reports, Faruk Sayin, a member of the acting board of Antalya Chamber of Commerce and Industry stated that thousands of properties are ready to be bought in the region. He noted that the sustained interest in buying Antalya property has been attributed to the low cost of housing in the region as economic downturn resulted in drop in house prices to a 25 to 30 per cent drop in home prices in Anatolia.

Mr Sayin commented: "The decrease in prices and the rising exchange rate make our country attractive for foreigners to buy real estate." The official asserted that with the correct promotion, foreigners are likely to buy large amounts of real estate in Turkey.
Adam Samuel, a director at overseas property portal Nubricks, explained that the country is much cheaper than most countries in the south-east of Europe, something that may entice people to invest in Antalya property.

Another attraction is the future; he suggested that is the potential accession to the EU, so many people are thinking that when that does happen prices will start [rising] and that's where they will see their gains. Turkish property buyers may be keen to take advantage of low prices and the possibility of gains if the country joins the EU in the next few years.

This presents a rare opportunity to buy property in Antalya at the prices found in an immature market, but in a country set to see the levels of foreign direct investment and visitors you generally find in an immature market. Such factors may have helped contribute to the popularity of Turkey with overseas investors.

Labels: Antalya, Market-Trends, Property-buyers

The UK's largest airline, Easy jet is increasing the number of cheap flights it offers from London Gatwick to Turkey's most popular regions.

According to Spot Blue, Easyjet will be running 4 to Bodrum and 7 to Dalaman. This is part of a major expansion of Easyjet's Gatwick flights, which will involve the addition of a new plane at the airport bringing the total to 39. The new flights will be extremely beneficial to the property markets of Bodrum and Dalaman, and are testament to Turkey's massively rising popularity with British holidaymakers.

Julian Walker of spot blue stated that new flights are always advantageous to Turkish property market as Turkey's tourism was raising nearly 20-25% for the last few years, and 25% expected this year, because it is outside the Euro zone and its improving infrastructure. As Turkey's tourism capacity increases more flights will be needed to continue its growth.

According to the airlines Web site booking pages, it has never been cheaper to fly over for a few days and have a look around for the people contemplating buying property in Turkey. The prices become higher month by month and the new one-way fares to Bodrum-Milas airport are ranging from the lowest fare in April of 48.99 pounds for flights from Gatwick to Bodrum, up to 58.99 pounds. For the Bodrum to Gatwick journey the lowest fare for April was quoted at 23.99 pounds to 79 pounds in August.

With British holiday makers having access to short affordable flights, it makes holiday rentals in Bodrum and Dalaman even more appealing. More tourists mean more rental opportunities increasing rental yields and making property in Bodrum and Dalaman an even more attractive proposition to investors.

EasyJet spokesman Andrew McConnell comments: "We have been analyzing these new routes for a while and we see this is as a great opportunity. These new routes fit into our business model by continuing to connect major European cities."

Labels: Holiday-property, Travel

A new report by Merrill Lynch (MER) Global Research predicts 3.2 percent economic growth rate in Turkey for 2010, despite the general slowdown in the world economy.

Merrill Lynch forecasts global growth of 1.3 percent in 2009, down from 3.2 percent in 2008, rising to 3.1 percent in 2010. Turkey will make a quicker recovery than other countries of the region thanks to comparatively minimal damage in the banking sector, and it expects lower interest rates and higher government spending to stimulate domestic demand. The analysis expected a 6.3 percent inflation rate in Turkey in 2009. Turkey will emerge as one of the few safe havens for investment following the end of the crisis and entrepreneurs who invest in Turkey will not lose out, but will instead make considerable profit.

Meanwhile, Mehmet Şimşek, Turkish state minister for the Treasury told a New York meeting of a U.S.-based Turkish-American business association that his country's economy would begin recovery by 2010. Simsek added that a permanent recovery of the global economy would also require Institutions such as the IMF, the World Bank and other regional banks should do more to support countries like Turkey because these countries have been the locomotive of the global economic growth over the last years.

According to Finans Invest, the more good news for Turkish investors is the stocks closed their best month since 2003, while they may rally further after the benchmark index crossed the 200-day moving average for the first time in almost a year and a half. The benchmark index jumped after Tevfik Bilgin, head of the Banking Regulation and Supervision Agency, said profits at banks will increase and their balance sheets passed a stress test.

Labels: Economy, Turkish-property

Turkey is gaining ground as a favorite holiday destination for Brits as the Euro is hitting the pound and British tourists spending power.

According to Co-op Travel, Turkey represents far greater value than Spain with superior value for money and a far higher standard of customer service. Turkey has attracted over a third more holiday makers this year compared to last year and has seen spectacular growth, according to ABTA. These figures echo tourism statistics from the Turkish Ministry of Culture and Tourism which reported a 15 percent increase in tourist arrivals.

Trevor Davis, The Cooperative Travel Group's director of retail travel said packaged holiday sales for Turkey have increased by 30 percent. Mr. Davis also said sales to Majorca, Spain's top-selling holiday destination, have dropped by 13 percent. Ian Hailes, head of product and development for Cosmos, said packaged summer holiday sales for destinations in Turkey were up by a quarter while Spanish destinations were decreased by 6%.

For those tourists who have felt the pinch of a struggling economy, a Turkish vacation could prove to be more affordable for the 2009 vacation season. Turkey's history is steeped in various cultures, its ancient ruins, mountainous regions and forested areas make Turkey a great vacation destination for anyone of any age. The wonderful mix of cultures, cuisine and night life make it a wonderful place for young people, while the excursions and packaged tours of ancient sites available also make it a great vacation spot for history buffs.

Turkey makes two appearances on the top 10 list for European tourists for 2009. Dalaman tops the list as the number one packaged vacation spot. Following closely behind is Majorca, one of Spain's Balearic Islands. The third destination is the Greek island of Crete. Bodrum makes the list as the number four vacation destination for Europeans. The Turkish government has said it will get involved in an advertising campaign to boost tourism. There were 23 million visitors to Turkey in 2008 and authorities had predicted that would increase to 30 million in 2009.

This rise in tourist numbers also spells good news for the holiday home market. In western Turkey where a lot of towns rely on tourism for income, thousands of holiday homes are on the market. According to the Real Estate Counselors Federation, in Mugla's Fethiye district around 6,500 are owned by British people alone. Holiday home sales have soared over the past 3 years and Holiday homes prices have risen by 50 % in 2 years, but there is an overload of properties on the market, there is still a bargain to be had in Turkey.

Labels: Holiday-property, Tourism

The Didim Marina project which is due for completion in May 2009 is expected to increase the number of tourists to the area and be a major factor in driving real estate prices upwards.

According to Voices, the local English language newspaper, the yacht owners are being offered a discount of 15 per cent on initial berthing fees and those taking out annual contracts will have an additional three months free. The marina stretches over 287,000 sq. m and will have 580 berths at sea and a dry dock capacity for 600 yachts.

Construction supervisor Kemal Atabak said that by completion there would also be a boutique hotel with 80 rooms, businesses on 20 different sectors, health clinic, a heliport, shopping centre, supermarket, yacht equipment shops as well as a ferry boat operator and customs and port authority facilities. In addition there would also be cafe's, bar, resting/overnight stay accommodation, swimming pool, sauna, massage, tennis courts and basketball field.

Mayor Mumin Kamaci predicted a 100 per cent rise in tourist to Didim when the marina is completed, particularly attracting excursion yachts. Mr. Yaprak, the marina manager commented: "The marina will attract yacht owners from the Middle East and across Europe. But importantly, it will be catering for the mega-yacht owners, the super-rich who have yachts that cannot berth at the likes of Turgutries, near Bodrum."

This comes after the news that EU made a Euro 340,000 (£270,000) grant for the Meandros Village project, which aims to highlight the historical and cultural assets of Didim.

Labels: Didim, Tourism

Turkey is one of the best places in the world to invest in a property after the news that Turkey is very close to hitting its tourism target of 25 million visitors in this year, as Holiday-makers are thinking beyond traditional seven- or 14-night breaks in order to save money on overseas trips.

According to Artemis travel Turkey, Around a third (35%) of Artemis Travel customers are staying anywhere between three and 17 nights at its Aegean coast resorts in Turkey, allowing them to shop around for the best flight prices.

Kerim Cavusoglu, president of the Turkish Association of Travel Agents (TURSAB) is confident that this year's winter will bring more opportunities to the Turkish tourism industry than the previous years, local newspaper today’s Zaman reports.

He commented: "Turkey had the potential to turn the adverse effects of the crisis to its own benefit," saying the country is advantageous in many areas compared to its rivals, most importantly that foreign tourists can find services with cheaper prices here and that’s the reason visitors tend to stay longer in Turkey.

According to the Daily Telegraph reports, Turkey is offering a cheaper alternative to the eurozone when it comes to holiday property for rent. As the pound is weak against the euro and budgets are stretched, the country provides a good alternative destination. The cost of living in Turkey is 50% cheaper compared to other countries in Mediterranean region, including the Northern Cyprus.

More than 31 million people visited Turkey in 2008, which could be welcome news for those considering purchasing overseas property in the country. Its popularity as a popular tourist destination could mean that there is a strong rental market for buy-to-let investors.

Labels: Investment-property, Tourism

The demand for quality rental accommodation in Turkey is increasing proportionately with the huge influx of Holidaymakers, it has been stated.

Nigel Harris, Chief executive at Artemis Travel said that the country used to be looked at as a cheap destination offering a cheaper alternative to the eurozone when it comes to holiday property for rent, but commented that this has now changed.

He commented: "Customers this year are looking for a combination of quality accommodation, flexibility on flights and duration and value for money."

Courtney Wylie of tourist property rental firm Holiday Rentals told the Daily Telegraph: "In high season, tourists can get a fantastic 2- bedroom villa with private pool near Fethiye or in Dalyan for around £600 per week." With the expected arrival of further low-cost flights to Turkey this year, the demand is expected to increase further as the flight and property rental option becomes more and more competitive next to the package holiday.

Turkey's tourist market was emerging long before its holiday home market, with in excess of 20 million tourists a year visiting the country. This is a key indicator for investment with a view to holiday rentals as it is backed up by booming tourism. For some time now, the Turkish rental market shows all the right indicators and now the facts are starting to speak for themselves as it provides investors with an opportunity to own a home that is rising in capital by around 15% per year in addition to offering superb rental opportunities.

In related news, recent survey from leading holiday rental site holidaylettings.co.uk shows Turkey is 7th out of 112 countries for demand for holiday homes.

Labels: Holiday-property, Rentals

Turkey is sure to make a large impact in the global medical tourism market in the very near future. Straddling both Europe and the Near East, Turkey has much to offer in terms of health tourism treatment, with state of the art medical facilities and a wealth of tourist interests as well.
Dawn Elisabeth Simpson, British TV producer lives in Yorkshire, chose Antalya for aesthetic surgery upon receiving advice from a friend. Praising Turkish doctors, Simpson said she was very satisfied with the result of the surgery. Simpson has 2 children. Her doctor, Seçkin Oksar, said "Simpson got in touch with us seven months ago. We examined her and did three different operations on the areas of her belly, breast and back. The operations were successful. Simpson is happy with the results."

Oksar commented "Women mostly from England, Belgium and northern European countries are coming to Antalya for plastic surgery. I can say that we, as Antalya, are one of a few good places in Europe in terms of plastic surgery."

The cost of medical care in Turkey is competitive with the rates of Europe and Southeast Asia, which is a fraction of the cost of similar treatment in the US. It's a popular choice for those needing dental or cosmetic surgery, and procedures can be arranged to be done immediately, saving the frustration of a long wait.

Turkey is becoming popular destination for medical tourism especially among the European tourists. In 2008, the country received around 200,000 foreign medical tourists, an impressive 40% increase from 2007. Turkey's health tourism income may reach USD 10 billion within the next three to five years. Currently, Turkey's health market has a volume of USD 500 million. The increasing tourism means that for investors looking for a low cost, low risk entry into property investing, Turkey makes a fantastic choice.

Turkey is also a great place for vacation opportunity after medical treatment with great Package deals with massages, spa treatments and visits to the famous Turkish baths for post-op relaxation. Dr. Resat Bahat, Chairman of the Association of Private Hospitals and Health Organizations commented "The hospitals provide foreign patients an opportunity to tour the city where they are receiving treatment. They get treated, rest and have fun, all as part of the package deal. That is what they find attractive".

Labels: Antalya, Tourism

The hottest ticket this summer is a holiday in Turkey and it's no surprise why thousands of Brits are expected to visit this non-euro destination in 2009, according to a travel operator.

Thomas Cook, Europe's second largest travel operator has stated that Turkey is the ideal family holiday location and the key appeals of a Turkish holiday this year is affordability. The country is not part of the euro zone and Turkish accommodation remains affordable as the cost of living is low. There are several discounted package holidays now available particularly for those willing to book at the last minute.

Recent figures from the Ministry of Culture and Tourism revealed that Tourist arrivals have risen steadily over the past few years. Turkey's tourist industry is breaking records year-on-year leaping from 9.75 million visitors in 1998 to 30.9 million a decade later in 2008. Undersecretary of the Tourism Ministry has stated that a further 20% increase in the number of British tourists is anticipated in 2009.

Investment in buy-to-let purchases has received a welcome boost from Turkey’s tourist statistics. The Turkish market is also showing promising signs for the resale market. Some 73,000 foreign nationals (mainly Britons, Germans and Greeks) own properties in the country predominantly along the Mediterranean and Aegean coastlines and interest in owning bricks and mortar be it for retirement, a holiday home or buy to let investment continues to be strong.

James González, Market Analyst at Obelisk comments "Although Turkey's still very much an emerging market; the signs are that it's set to become more established during 2009 and Turkey certainly offers some excellent investment opportunities".

Labels: Investment-property, Travel

Among the winter sun destinations, Easyjet began operating a thrice-weekly service between London Gatwick and Dalaman, a town located on the south-west coast of Turkey. The airlines estimate that more than 60,000 passengers will visit Dalaman this year, and so popular is the route expected to be that it has already been announced that the flight frequency between these two destinations will increase to five times a week as of 1st May.

Easyjet said in a statement that GB Airways will continue to operate all routes under the British Airways brand until 29 March and As many as 21 new destinations are available from low-cost airline Easyjet thanks to the company's takeover of GB Airways. The current credit crisis has not stopped Brits booking their annual summer holidays for 2009 however due to the British pound dropping in value against the Euro; they are looking for Non-Euro alternatives like Turkey, where they get more value for their money.

Furthermore, according to the World Tourism Organization, Turkey has one of the best performing, not to mention lucrative, tourism industries in the world, with over 27 million tourists from all around the world expected to visit the country this year.

Property experts believe that this new flight route will serve to further increase the numbers of property buyers and tourists heading to Turkey. Dominic Whiting, editor of the Buying in Turkey guide has said that the long-anticipated arrival of no-thrills flights to the Turkish coast is big news. He commented "Improving access from the UK should have a very positive effect on tourism and the property market in Dalaman and other nearby resorts in Turkey - with a recent Europe-wide study by Savills finding an average price premium of 37% for property in an area served by a budget airline."

Dalaman's beautiful countryside, cotton fields, fragrant orange groves, and some fascinating ancient sites make it a popular tourist destination. As the area develops with holiday villages in Sarıgerme and the new golf courses in the near vicinity Dalaman is set to become the destination of choice for many tourists with plans to turn this area into a golfers paradise. Dalaman town is growing quickly as a result of the investment in the area -the real estate market has increased the number of properties available for sale/rent.

In related news, Edinburgh airport has already had extra flights to Turkey scheduled by certain travel companies and other airports are expected to announce the same.

Labels: Dalaman, Property-buyers, Travel

Turkey property searches saw a month-on-month rise of 38% in March, according to specialists in Turkish property, Spot Blue.

Spot blue latest figures suggest that 2009 had gotten off to a bright start for Turkey. Julian Walker, director of the firm comments "Things are starting to reach normal levels again, slowly but surely that is. Sales are returning to the kind of levels that exist when we are neither in a boom or decline."

"we were never crushed by this international recession, because we never put all our eggs in one basket, as we continued to offer properties in Turkey based on their quality and appeal to our client base, and to market them to anyone who wanted to buy a property in Turkey, for lifestyle reasons, investment, or both" continued Julian.

Meanwhile, propertytalk Live! Web site revealed that British second-home buyers have dropped the United States as a preferred destination and selected Turkey as their favourite. According to statistics from PropertyIndex. com, Turkey's searches increased by 154 percent in January to February 2009 compared with the same two months last year.

In related news, the average house price searched in Turkey jumped from 74,720 euros in January to February 2008 to 90,155 euros in 2009.

Labels: Market-Trends, Turkish-property