As the most western of the north Mediterranean countries, Turkey has come late to the international property market. But being late to the party has meant the country still offers very good value for money, with a large proportion of properties under ?80,000. It has also had the opportunity to learn from the excesses of some of its Mediterranean counterparts and tailor its property to the needs of a growing Western market.
The Turkish coast is lapped by the Aegean Sea along the west and the Mediterranean in the south, which affords it a vast swathe of beaches and sea views to develop and offer the second-home lifestyle. Along the Aegean shore, the Bodrum peninsula is one of the best-known and most accessible second-home destinations. It offers centuries of history, including one of the seven wonders of the ancient world at Bodrum itself, where the Mausoleum of Halicarnassus once stood.
The international airport 20 minutes from Bodrum is well-served by charter flights between April and October, although there are year-round internal flights from Istanbul as well. This has spurred the tourist and real-estate industry along the peninsula and there are a large range of property options to choose from. In the north of the peninsula and just ten minutes form the airport, GÃ?llÃ?k is a small harbour town with a growing second-home community. Turkish property specialists Spot Blue are selling one-, two- or three-bedroom properties at GÃ?llÃ?k Apartments, just 12 minutes walk from the port. The development includes swimming pools, sun terraces, restaurant and rental management. Two-bedroom apartments start from ?49,950. Also in GÃ?llÃ?k, two-bedroom Olive Tree apartments start from ?71,000 through Dream Homes Worldwide.
As the Bodrum peninsula comes of age in the property stakes, golfing amenities are never far behind. Adjacent to the Vita Park Golf Resort, which will include two 18-hole golf courses, the Turquoise development is 15 minutes from Bodrum airport and will comprise 11 different property styles, including apartments and villas with either sea, lake or mountain views. The development, which is expected to complete in November 2008, will also have a cable-car to the resort's private beach and on-site facilities, including indoor pool, fitness centre, bars, boutiques and a supermarket. Available through Dream Homes Worldwide, 'Emerald' apartments start from ?65,600 for two-bedrooms while 'Beryl' style apartments start from ?69,200.
Value for money is one of the many attractions of buying in Turkey, but investors would be wise to start looking now, says Adam Godwin, marketing manager for Dream Homes Worldwide. Apartments in Bodrum started from around ?45,000 12 months ago but now, he says, they are more likely to range upward of ?60,000, particularly those of a high quality. The company expects prices to continue to rise, with entry levels of around ?90,000 in the next two years. 'We can say this based on the fact that non-resident mortgages should come online for the first time over the coming months, the prospect of EU entry draws nearer, visitor numbers to the resort just keep on rising and already restaurants and bars are extending their opening season.'
Clair Walker from Turkish Homes says the appeal of Bodrum also extends to its access, where most properties are between 20 minutes and an hour from the airport. She also points out that Altinkum, north of Bodrum, owes its popularity to the reasonable price of properties there. The company is selling one-bedroom apartments from ?34,000 at Diamond City III or, in nearby Akbuk, duplexes at Pearl Rock with sea views start from ?64,500.
South of Bodrum but still within the Mugla province, the town of Fethiye, built on the hillside of Mount Mendos, is already an established tourist hot spot, served by Dalaman airport around 40km away. Along with the breathtaking blue lagoon of Oludeniz, Fethiye's beachfront charms can be easily accessed from the �alis Beach apartments, one sells through Spot Blue from ?55,000 for a two-bedroom property.
In between Fethiye and Bodrum, Turkish Homes is selling two-bedroom apartments on a development in Marmaris built around a communal swimming pool and five minutes walk to the shops and restaurants from ?68,000. And in Izmir, to the north of the Bodrum peninsula, Hollingworth and Associates is marketing Peninsula Village, which will have a marina and access to its own private beach from the villas and apartments. The first 100 will be ready in April 2008. Apartments start at under ?25,000 and villas from ?49,496.
Dalaman airport is the main entry point for the resort towns of Fethiye, Marmaris and Kalkan, as well as all the smaller villages and resort communities in the area. Curbanoglu, a construction company and property developer focused around Dalaman, has launched Akkaya Gardens, a holiday-home development 20 minutes from the airport due for completion in September 2009. The properties include eight semi-detached villas and 33 apartments starting from ?44,000.
Along the Mediterranean coastline, Antalya is the main airport entry point for the more easterly resorts and has stimulated the growth of the city and its surrounds into a highly desirable holiday-home destination. Nearby Belek has become the town of choice for golfers with five courses in the area, and Spot Blue is selling two-bedroom golf apartments with putting green 1km from the beach and nearest golf course from ?55,000.
Turkey's vast coastline may be imminently more affordable than that of its eastern Mediterranean counterparts, but the market for rentals is not as developed and buyers should be cautious about potential income. Clair Walker says buyers should view rental income as a bonus rather than a given. 'Most people need to put quite a bit of work into getting a successful rental property up and running. Clients should not go over budget when buying on the premise that it will be easy to rent out unless they have a rental contract already in place.' Considering the array of property, rental return is difficult to estimate but she says a two-bed apartment could rent for ?150 to ?300 per week depending on location and size, resort and time of year.
Dominic Whiting, editor of the Buying in Turkey Guide, agrees. He says: 'Rental potential is highest in the main resorts but there is a lot of competition from hotels and other properties so it requires considerable effort to achieve. Best returns are achieved in the cities, like Istanbul, Izmir or Antalya.'
Istanbul's rental market is more buoyant and less seasonal than the resorts along the coast. The country's largest city is also benefiting from a strong growing economy as well as 'high domestic demand from the young population, improving domestic and external property fund-raising abilities, improving flight access and potential EU ascension,' according to Spot Blue managing director Julian Walker.
Properties at the Elite Park development, on the European side of the Bosporus river, are for sale through Jet2Let Property and come with guaranteed rental of five per cent per year for the first two years and six per cent for the next three years. One- and two-bedroom apartments at Elite Park start from ?49,000.
