Turkish real estate has taken a boost
from recent global house prices and Turksish property experts who now say
Turkish land could well serve as a sound investment
Overseas poroperty investors looking for
alternatives to today’s volatile financial markets should consider investing in
land in Turkey, said Turkish property specialist Spot Blue, adding that buying
land and building your own villa can also be a better long-term proposition for
second homeowners.
“Opportunities to buy land come in all shapes and sizes, from the
large-scale urban investment sites to the smaller ones on the edge of resorts
suited to individual homes,” said Julian Walker, director at Spot Blue.
“We’re seeing a consistent demand for land in 2013. Currently, we have a
client in the process of buying an 800-square-metre plot in Belek for around
ââ¬110,000, giving the option of building a desirable private villa, or sitting
on the plot and waiting to see if its value rises. An example of a deal
generating interest from professional or institutional investors is a large
site in Bodrum. We can source all types of land, to complement our estate
agency business.”
Turkey’s real estate proposition was
recently confirmed by the internationally recognized Knight Frank Global House
Price Index, in which the country recorded the seventh highest rise in
residential property globally during 2012, namely 11.5 per cent. This was
higher than any other European country.
“The removal of Turkey’s restrictive reciprocity law last May has driven
interest from Middle Eastern buyers in particular,” continued Julian
Walker. “Many of these have long-term investment interests and come to us
asking for help finding land deals in hot spots, particularly the rapidly
developing suburbs of Istanbul, where demand for residential housing is
booming.”
An example of a site currently available
in Istanbul, an increasingly prominent global financial hub which could
experience a major uplift if voted in September as host for the 2020 Olympics,
is a 56,500-square-metre site in the Basaksehir district. With a purchase price
of around ã11million and good connections to the city-centre, 40,000 square
metres of the site comes with planning permission.
Buyers of smaller plots, for the
development of a second home, should bear in mind that local building rules
dictate how much of a plot can be built on, typically 15-20 per cent. In
general, areas in and around the centre of a resort, where plot sizes are
usually smaller, might get planning permission for anywhere between 30 and 100
per cent of the plot size.
On top of meeting all national and local property regulations, other
considerations when choosing a plot in Turkey should include: access to main
roads and infrastructure, the gradient of a property and exposure to extreme weather
conditions, views, the immediate surrounding area and possibility of further
developments, and amenities in the wider area. Having a reliable contact for
the construction of your property and watertight strategy for overseeing the
project are also paramount.
