Dalaman offers exciting property market

Property investors in the UK have been encouraged to consider buying a residence in Turkish region of Dalaman.

According to Foreign Property Buyer, the Dalaman region is opened up by low-cost airlines from major British airports. The improved accessibility is likely to lead to an influx of holidaymakers and investors which in turn will push up demand for rental accommodation in the area. The property prices and rental prices are likely to grow in the region and the frequent flights may make it as an attractive location for buyers who want to purchase a holiday home overseas.

Dalaman, a stopover destination earlier is increasingly gaining reputation more than that now. Increased accessibility could potentially help boost the property market in the Dalaman area, as improved accessibility could lead to more interest from prospective buyers. Furthermore, the influx of additional visitors should help to fuel growth in the region's rental sector.

Rick Green, chief executive of Flyglobespan, commented: "Turkey, with its rich culture, great beach resorts and reputation as a value-for-money destination, is bound to be a winner."

Turkish newspaper Hurriyet has advised property investors that the period of 2010 to 2012 will represent "the next set of golden years for Turkey's real estate market", with property in many of the nation's holiday resorts already in high demand. A large number of properties in coastal locations are being built to satisfy increased demand from tourists, while new developments in various districts of the capital also represent investment opportunities.

"Private investors can consider aiming for investment property to rent out to the tourism market," Hurriyet reported.

The Turkish property market is bursting with choice

During this time of economic uncertainty for Euro zone countries, Rental Property investors in Turkey will be pleased by news that experts have predicted that the destination can produce annual rental returns of about six per cent.

Property Wire has reported that Developer Cumberland Properties has made the forecast after the European country defied the odds and increased its visitor numbers in 2009. Over 27 million tourists visited Turkey last year, with the figure representing a 2.8 per cent growth compared to 2008.

Eric Kaya, director of Cumberland Properties, told the news provider that Turkish property prices are still hugely undervalued so there's an opportunity to make really substantial returns on investments in areas such as the Bodrum peninsula. Increase in the number of flights on offer to Turkey, Economic prosperity and improvements in internal infrastructure have enabled more Turkish nationals and overseas holidaymakers to visit Turkey.

Turkish newspaper Hurriyet has advised property investors to prepare for a boom in the market this year. The period of 2010 to 2012 will represent "the next set of golden years for Turkey's real estate market”. New developments in various districts and a large number of properties in coastal locations are being built to satisfy increased demand from tourists.

The publication describes the Turkish property market as "stuffed with choice", as investors have a wide range of options concerning "location, investment approach and target market".

Tourism industry is to receive new investments

Property investors in Turkish real estate will be pleased by news that tourist visits to the country jumped last year, with more holidaymakers looking for cheap destinations and also Turkey’s tourism industry is to receive USD 40 billion worth of new investments.

While Turkey's competitors in the Mediterranean such as Spain, France, Italy and Greece registered a ten percent decline in the number of tourist visits during the worldwide economic downturn, Turkey remained highly popular as a holiday destination and observed a three percent increase in the number of tourists. The Turkish Tourism Investors Association's (TYD) Chairman Turgut Gur said there is a change in the tourism sector as Turkey begins to offer a lot more than the sun, sea and sand.

Mr. Gur said USD 40 billion will be invested in tourism industry over the next five years and added, "We are now focusing on city hotels, not holiday hotels. The total number of beds will rise to 1.5 million, while the number of marinas in the country will reach 65. The number of golf courses will rise to 50 with the addition of 35 new ones”.

Meanwhile, Wybcke Meier, board member of the German Travel Association (DRV and managing director of tour company Oger Tur) said that Turkey will be the winner in tourism in the Mediterranean this year. Regardless of the increased preference for domestic destinations, tourism numbers are up across the board, said Meier, adding that reservations for June in Turkey have surpassed the previous year.

He commented: "Turkey was the most profitable country in terms of the tourism sector in 2009. We observed significant interest for the Aegean region in addition to Antalya. Our sales for Istanbul have gone as planned. There is a ten percent increase in 2010 reservations compared to last year".

In more good news for Turkish rental property investors, Turkey's Limak Group, which is planning to achieve rapid growth in the tourism sector, is currently investing a total of USD 320 million in hotels in Turkey and Turkish Republic of Northern Cyprus (TRNC).

Filyos Project is set to transform the Caycuma district on the Black Sea coast

Overseas and Turkish companies have shown keen interest in the on the Black Sea coast Filyos Project, which is set to transform the Caycuma district of Zonguldak of Turkey into an industrial base in a few years.

Developed under the supervision of the Investment Support and Promotion Agency of Turkiye (ISPAT), The Filyos Project consists of four industrial zones and a port. The Project has entered its final phase with the necessary nationalization being completed for five kilometers of land and port construction ready to go on tender in a few months. This is expected to give the much needed boost to the property market in the region

The project has already aroused substantial interest among both foreign and domestic companies and 16 potential investors, four of them being foreign, have already reserved a place in the applicants list. ISPAT’s President Alpaslan Korkmaz said that they expect billions of dollars of investments and the creation of thousands of jobs, adding that the groundbreaking ceremonies should start by next year.

Mr. Korkmaz commented: "This is an enormous contribution to the economy and, based on the number of applicant companies up until now, proposed investments have already reached USD 10 billion".

In more good news for investors, Russia's third-largest steelmaker, OAO Magnitogorsk Iron & Steel Works, has said it will build a multi-billion dollar steel factory on Turkey's Black Sea coast.

Istanbul continues to lead the way in new property developments

Istanbul continues to lead when it comes to new property developments as the Turkish Highways Directorate has sold land in Istanbul for $800 million (~£410 million), Today's Zaman reports.

According to data released by the Land Registry Office, Properties in Istanbul proved to be the most valuable in the country, and the growth of the market shows no sign of slowing with sales revenue increasing by 30% last year. Istanbul's status as a major world city is helping to spearhead this development, with the Turkish capital recently named as a European Capital of Culture in 2010.

According to Hurriyet Daily News, a joint study by PricewaterHouseCoopers and the Urban Land Institute (ULI) for the second year in has found Istanbul leads the way in terms of development expectations for the coming year. Moreover, the city ranked in the top five for real estate purchase expectations.

Istanbul offers better real estate development prospects than any other city, with one of the 400 property specialist respondents claiming "Istanbul will be the star of the next decade".

The news provider also quoted Firuz Soyuer, board member at ULI Turkey as saying that Istanbul emerged as one of the top areas for development. "We will probably see bigger portfolios. Investors might also look toward different areas to spread risk. Maybe shopping streets will come to the fore again," he predicted.

Reaching Antalya has become easier with the new terminal building

The Turkish province of Antalya is set to become a hotspot for tourists in the near future, with more flights and the addition of a new terminal building to Antalya Airport.

According to the statement issued by ICF Airports, the project was launched last year to provide a new and modern domestic terminal in Antalya. The completion and commissioning of its giant project will cost EUR 100 million. Having paid EUR 2.37 billion, ICF Airports holds the operating rights of Antalya Airport until 2024 and it continues to invest in the infrastructure.

According to Wybcke Meier, board member of the German Travel Association (DRV) and managing director of tour company Oger Tur, Turkey will be the winner in tourism in the Mediterranean this year. In spite of the increased preference for domestic destinations, tourism numbers are up across the board, said Meier, adding that reservations for June in Turkey have surpassed the previous year.

He commented: "Turkey was the most profitable country in terms of the tourism sector in 2009. In addition to Antalya, we observed significant interest for the Aegean region. Our sales for Istanbul have gone as planned. There is a ten percent increase in 2010 reservations compared to last year".

Meanwhile, a recent report from the Post Office has revealed Turkey as one of the world's top ten destinations for affordable holidays. The Holiday Money Report, which is based on exchange rate movements and local tourism costs, found that Turkey offers an attractive package for budget conscious tourists, particularly those taking a longer break.

In related news, Turkish news provider Hurriyet recently claimed that the rapid growth of the country's tourism industry will contribute to a property boom in 2010.

More Regional investments in Konya boost its property market

More globally renowned companies have started to consider investing in the central Anatolian province of Konya which is not only supporting the regional economy but also transform the city into an integral part of the country's economy. These investments are also expected to boost the property sector in the region.

Recent investments in various sectors in the province of Konya contribute more than USD 1 billion annually. There are four new universities which have been recently created in the region. Konya’s healthcare sector will receive TRY 300 million of investments in the form of five new private hospitals and the number of hotels with stars will rise to 29 on the back of eight new hotel investments.

Turkish pharmaceutical company Ilko is about to complete its TRY 130 million medicine production plant, in Konya. Located in the Konya Organized Industrial Zone, Ilko’s plant took advantage of investment incentives offered and is expected to employ some 300 people countrywide.

Meanwhile, MGY Automotive Corporation, the Turkish distributor of China’s Dong Feng Motors (DFM), is considering the central Anatolian province of Konya for establishing the production unit. the government says it will focus on investments in eastern Turkey between 2010 and 2012 in the hope of stemming the flow of people from east to west. The government says it will continue to focus on the socio-economic development of “surrounding cities”, with a main focus on turning the 12 key migration cities which includes Konya.

According to property agent Spot Blue, the strength of Turkey's economy has led to its growing appeal with property investors.

Julian Walker, director of Spot blue told Write-about-Property.com that Turkey emerging from recession faster and stronger than many EU countries and this is making Turkish property look like an even better buy to international investors.

She commented: "This, of course on top of its benefits to lifestyle buyers of warm climates, gorgeous coastlines and fantastic value for money, is making Turkish property hot right now."