TURKEY
em Atakan, Managing Director, Mediterra, the Turkish subsidiary of Dolphin Capital Investors Limited, and a developer of high end residential projects in Mediterranean Turkey.
INSIGHT: DEVELOPER PERSPECTIVE C
Are you expecting a rush in demand once the reciprocity law is abolished? “When the new law comes into place it will lift restrictions on citizens of 89 countries worldwide from owning a property in Turkey. With Turkey already a hotspot for property investment with foreign sales in real estate reaching US$ 2.5 billion in 2010, some experts predict the lifting of the law could see this double in 2012. We have no doubt that this will pave the way for a major boom, and we envisage significant demand from the Gulf countries, Russia and the Turkic states of Central Asia.”
Is there already significant investment interest from the Middle East? “We can only speak anecdotally, based upon our own experience, but we
have definitely seen an increase in demand. Much of this has come from property rentals at LaVanta, in Kalkan. Many of our homeowners enter into rental programmes to generate a second income from their property, and over the last two years we have seen an increasing number of Middle Eastern guests. Maybe it is because they can enjoy visa free travel or because of increasing flight availability; but we have had guests from Egypt, Saudi Arabia, Dubai, Qatar and Bahrain and without exception our guests have shown interest in buying property at LaVanta. Interestingly, we also have a number of British expat owners who also live and work in the Gulf. Most clients enquire about villas. All of our villas have private swimming pools, which allow families privacy, plus they can also see the capital growth that is achievable from larger properties.”
Which particular regions are key centres of development? “Last November saw an increase in average property prices in Turkey –
one of the few countries in the world to experienced a rise. Istanbul, Izmir and Adana are currently the highest performing areas and saw the greatest growth. For anyone looking to invest in a city then Istanbul simply cannot be ignored. But most of the action is on Turkey’s Mediterranean coast. For a short to medium term return then it has to be the Mediterranean coast of southwest Turkey. Te infrastructure is developed, and improving all the time, and there is still sufficient undeveloped coastline.
“Antalya, Fethiye, Gocek and Kalkan offer the best prospects along the
coast. Rental yields of eight per cent are possible in these areas, with an average yield of six per cent, which is higher than you can achieve anywhere else in Europe. Within its Tourism Strategy for Turkey 2023, the tourism ministry is looking to create tourism cities and corridors with a view to enhancing the attractiveness of regions with tourism potential. Kaş, which is a neighbour to Kalkan, been designated as such, and this will have a positive knock-on effect for Kalkan.”
Is there any other legislation needed to boost foreign direct investment? “I think we have to let the dust settle before considering anything else.
Tere have been lots of change in recent years, and the whole process of foreign nationals applying for residency was only simplified and made more affordable in 2011. As foreign ownership increases I am sure there will be ongoing discussions as to how foreign nationals can integrate more fully and contribute more positively to the economy ” l
14 I CITYSCAPE I APRIL 2012
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