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British buyers in Turkey at record levels - 6 July 2010

A record 32,000 British people now own property in Turkey, the latest land registry figures show as the country’s real estate market remains stable.

According to the Turkish General Directorate of Land Registry demand for property from foreign buyers is not showing any signs of slowing. The last couple of years have seen interest in second homes especially along the Aegean and Mediterranean coastlines swell with foreign investors purchasing twice as much property than they did in total over the past 79 years since the founding of the Republic

European buyers in particular have been attracted to Turkey due to the affordable property prices, low cost of living and direct access from the UK. Over 63 million square meters of property is owned by foreigners with Britons possessing the largest amount at six million square meters followed by the Germans at 3.5 million square meters and Greeks at three million square meters, the Turkish Land Registry figures show.

The province of Mugla, located in the south western corner on the Aegean coast, has proved a particularly sought after destination with almost 5.5 million square meters owned by foreign nationals, including about 14,000 British owners.

‘We have certainly seen the Turkish property market go from strength to strength. Overall, the number of foreign property buyers has increased by nearly 30%, from 73,000 in 2008 to 104,000 today with the British market accounting for the largest group of buyers,’ said Steven Worboys, managing director of Turkish property experts Experience International.

One factor which has certainly positively affected the Turkish property market has been the increase in availability of finance. Up to 70% LTV mortgages are now commonly available throughout the country and this combined with Turkey’s location outside the eurozone means there is zero currency exposure as many property prices are fixed in Sterling.

The latest price index for May shows prices are largely stable. Residential sales prices increased 0.26% in Adana, 0.50% in Antalya, 0.52% in Istanbul and 0.45% in Kocaeli. They fell slightly in other areas including falling 0.16% in Ankara, 0.11% in Bursa and 1.17% in Izmir during May 2010.

Property rental prices are also largely stable. Residential rent prices increased 0.15% in Adana, 0.23% in Antalya, 1.04% in Bursa, 0.22% in Istanbul and 0.24% in Izmir, but fell 0.04% in Ankara and 0.10% in Kocaeli, the figures from REIDIN show.

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