It is a well known fact that not only the UK economy, but the general world economy is still struggling to recover from the onslaught of a crippling recession. As a consequence of increased financial stress, many people have inevitably had to cut back on non-essential items over the last few years. Now that the shoots of regeneration are beginning to bare their buds however the travel industry in particular is starting to show signs of recovery. As the purse-strings gradually loosen, holidays are once again within the grasp of many.
Allied to the improvement in the tourism sector, those with a little more capital at their disposal are once again beginning to consider investment opportunities. In fact, now is a particularly lucrative time to be entering into investments given the expected growth across the board. Property in the UK for rental or resale purposes is a long-standing wealth accumulator and still holds potential. But the recent crash in house prices and prevalence of negative equity has damaged the pockets of many. The same can be said of those who invested in property in rapidly developing ‘new’ areas such as the United Arab Emirates and locations which notoriously had over-inflated base values such as Florida.
In spite of the horror stories associated with some acquisitions of overseas property, there are also success stories and these are set to proliferate with the shift from recession to growth. For UK investors however one location stands head and shoulders above the rest in terms of potential: Turkey. Due to the sustained weakness of the Pound against the Euro, Turkey has grown hugely in popularity as a tourist destination. This financial advantage over European alternative destinations has been bolstered by concerted efforts by the country to maximise their tourist appeal. This high level of tourism activity equates to great opportunities for renting out property in the country.
Alongside the tourist appeal, Turkey is also an economical stable and increasingly powerful force. With the world’s 15th highest gross domestic product and ever growing levels of foreign direct investment ($21.9billion in 2007) it is by no means the ‘Sick Man of Europe’.
Given the solid economic foundation, high popularity with both tourists and foreign investment and the very attractive exchange rate between the Pound and Turkish Lira: Turkish holiday properties are an incredibly attractive proposition. In addition to the attractive portfolio potential, Turkey is a truly exceptional holiday destination, with enviable weather, geography and cuisine. Overall the area formerly known as the Ottoman Empire offers that which all property investors long for: solid rental occupation, high rental yield, great capital appreciation and a wonderful place to stay when you feel an urge to unwind and spend some of the capital you’ve accumulated through your ownership.