Growing interest in Turkey, Cyprus and Malta

Turkey has grown in popularity with many overseas property investors, the currency specialist HiFX has reported.

Despite recent election turmoil, it seems British buyers remain optimistic about Turkey’s economic progress and the country’s accession to the European Union, said the company based on its latest Global Property Hotspots Report.

‘Having delivered Turkey's most successful term of government in recent times, Prime Minister Erdogan has succeeded in bringing the Turkish economy firmly under control. He has opened the door to major international investment and moved the country to final accession to the European Community’, said HiFX’s Mark Bodega.

‘The latest elections have also shown that Erdogan's AK Party is now well positioned to deliver further political stability, economic growth and social reform. Turkey's GDP per head is not much lower than that in Romania, a recent EU member. Rates of both unemployment and inflation in Turkey have fallen to high single digit figures – quite an achievement, given that it is only five years since Turkey had an inflation rate of 70 per cent’.

British buyers are now the second largest group of foreign property owners in Turkey, with 12,000 properties according to the latest Turkish government statistics. German owners are the most numerous, accounting for almost a quarter of the property which has been bought by non-Turkish citizens. This is in line with the long standing relationship and history of migration between Turkey and Germany.

‘Like Spain 30 years ago, Turkey’s low property prices are attracting more than just the holiday makers – Brits are now lining up to buy holiday homes there. The southern resorts of Fethiye and Marmaris were first in on the action but it seems we’re now turning our attention to the northern Bodrum and Cesme peninsulas’, said Bodega.

But he warned that when buying property in Turkey as a non-national, the purchase needs to be approved by the military - to ensure the land you are buying does not fall within a restricted zone. ‘This is only a formality but the procedure can take from three to six months. Buyers are therefore advised to use a reputable solicitor who is fluent in both English and Turkish and can tackle problems over the title of properties’.

• Overseas Property investors will look to both Cyprus and Malta following the announcement that both countries are set to join the Euro next year, said HiFX. Both countries will adopt the Euro from 1 January 2008.
HiFX said it has already witnessed a doubling in the number of Britons looking into buying property in the two countries. ‘We predict the property market on both islands to continue to grow due thanks to a number of reasons. British purchasers like the legal system in Cyprus as it is easy to understand - being based on the English one’, said Mark Bodega.

‘Malta boasts far lower taxation than the UK and there are no annual council or property taxes and inheritance tax was abolished in 1992’.