The Turkish property market is continuing to grow at breakneck speed, with rising house prices and rents pleasing investors. Suleyman Akbay, managing director of Oceanwide Properties, explained: "In some regions, such as Fethiye for example, we are seeing a three bedroom apartment bought off-plan and completed five years ago now fetching 30 per cent plus above its original purchase price."

In June 2012, Turkey was in fact named as having the third fastest growing property market in the world, overtaking even Russia and China in investment. Knight Frank's Global House Price Index revealed the value of homes in the country had grown 11.5 per cent year-on-year and 3.5 per cent on the previous quarter. This is in part thanks to foreign demand and rising rents for holiday homes. Capital gains on real estate in the country have also risen over the last five years, making Turkey ideal for investment.

Resale properties are performing particularly well, according to Mr Akbay. "I foresee a shift in buying trends of property in Turkey on the horizon, with a boost to the already demonstrably profitable resale market," he said. This will likely be driven by new increases to value added tax in the country, which will cause future off-plan and new build development prices to rise. "The new tax hikes don’t affect older properties as it stands, therefore resale property in Turkey will likely present better value for money for many buyers," explained the managing director.

The decision by the country to open up the property market to overseas buyers from the Middle East and Russia has also had an impact on the speed of growth in the sector. Teamed with the abolition of the reciprocity rule, there is no surprise that the eyes of many investors are now firmly on Turkey. According to the association of real estate investment companies (GYODER), new home prices in the country increased by just over 12 per cent in 2012 and 2013 looks set to be another pleasing year.



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