Turkey property outlook

The European perspective offered to Turkey by the European Council and overwhelming support for EU membership on the part of the Turkish people have opened a window of opportunity for reforms. High-tech industries are just starting to be established, usually on an assembly basis, but as demand is growing fast, the potential appears to be significant.

Although Turkey experienced a serious economic crisis in 2001, the country is now well on the way to recovery due to its dynamic economic structure. As a result of a comprehensive restructuring program backed by the IMF, serious reforms including the cleanup of the banking system, independence of the Central Bank, the closure of extra budgetary funds and tough fiscal policies were accomplished. Within a year, growth resumed at 7%, inflation dropped to lowest levels for the last three decades, the debt to GNP ratio declined and Turkish Lira regained its value. Strong economic growth has been permanent. GNP expanded by a striking 13.5% in the first half of 2004.

Turkey has historically had strong trade relationships with the EU. Turkey's trade with European counterparts has strengthened, especially after the Customs Union Agreement signed in 1996. At present, 48% of Turkey's imports and 55% of exports are in relation to trade with EU countries as of 2004.

Turkey has always attracted tourists from all over the world and especially Europe. While the beaches of the Aegean coast offer three seasons of seaside recreation, on the whole, Turkey is a place to be visited all year, offering interesting historical sites and genuine hospitality. In recent years there has been a boom in tourism, and the need to open new facilities to accommodate the increasing number of tourists is of prime importance. Tourism schools have been opened to train qualified personnel.

Taking all the above into account, it seems that both the short and long term prospects of the Turkish property market are looking positive, especially as the government seems to be fully committed to maintaining economic reforms, which will fuel the economy as investor confidence grows. The property market will also be positively affected as buyers from abroad are attracted in greater numbers.

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