INTERNATIONAL
Crete have remained relatively stable during the downturn, and with 320 days of sunshine a year, the island appeals to retirement buyers as well as holiday home seekers. Mike Saunders says more than 90
per cent of Snobby Homes’ buyers are aged over 55. The company has designed its homes specifically to appeal to the UK market, with stone features, arches, pantiled roof and vaulted beamed ceilings, and an eco- friendly angle, delivered at what the company claims is the lowest price for new build detached homes on the island. However, Scandinavians are also buying – their economies seem to have weathered the storm better than most other nations, and they have the money available. As for finance, Greek banks are
still ready to give mortgages on a basis of 75 per cent loan to value, over a maximum 30 years.
OLUDeNIZ tUrKeY While most property has been
TasTY TurKEY Turkey remains the bargain basement of the Med, an increasingly popular holiday destination with over 2.5 million British tourists and 28 million foreign tourists in total last year, and improving accessibility. Being outside the eurozone, it’s one of just a few still cheap destinations for British holidaymakers, and the currency factor makes property investment attractive. At the same time Turkey has a
strong economy, with over seven per cent GDP growth last year, way ahead of the UK, and a stable democracy with a reliable legal system, says Suleyman Akbay, MD of Oceanwide Properties. Turkey’s popularity as a holiday
destination has made marketing into the UK much easier, Akbay says. Investment buyers are particularly attracted by the yields available, which exceed the poor returns on savings offered by UK banks, and even relatively lower-budget buyers are deciding to make better use of their finds. Discounted offers are available on off-plan projects at 15 per cent or more below completion price, often with rental guarantees.
targeted at foreign buyers, the growing Turkish middle class has increased domestic demand for second homes as well as city buy-to- let. Fethiye and Kalkan for instance are popular with domestic holiday makers as well as foreign tourists, and Akbay expects this to continue to support property prices in the main resorts. Bargains can still be found – a
two bedroom apartment in a beach holiday resort such as Altinkum could cost as little as £18,000, or from £60,000 in the more upmarket Oludeniz, while detached villas with a pool might cost from £70,000 in Altinkum to £100,000 in Oludeniz. However it’s not just sun, sea and sand in the obvious resorts. Istanbul is fast becoming a favoured location for buy-to-let investors. The city’s
crete greece
Bargains can still be had, prices in Oludeniz start at £60,000.
population is growing fast with 400,000 people a year moving into the city, according to Suleyman Akbay, and demand for residential accommodation is outstripping supply. Rental guarantees can be as high as 8 per cent with a cash investment of £25,000 or less, but prices have rocketed and finding the right property can be difficult. Those who want a lower priced
90% of Snobby Homes buyers are over 50.
play on Istanbul might prefer Bahcesehir, a suburb 20 km out of the city, suggests Alexander Tomlinson of GEM Invest. Bahcesehir is the site of a major university, creating high student as well as commuter demand. Flats cost from £48,000, with a seven per cent two-year guaranteed yield. Turkey was a cash market, but now mortgages for foreign buyers are becoming more accessible, with loan to value up to 90 per cent and interest rates of around four per cent. Increasing availability of finance could help support prices over the medium term – however, the choice of products is still limited. Another difficulty, Akbay admits,
‘Greek banks are still prepared to give buyers 75% LTV mortgages.’ MIKE saundErs snOBBY HOMEs
is that the Turkish real estate market is still unlicensed and unregulated, with many unregistered agents – even taxi drivers and restaurant owners will try to sell property to the uninformed! Oceanwide and other professional agents are introducing a more professional tone to the market, but there’s still a lot to do, and due diligence is essential when dealing in Turkey.
PROPERTYdrum JULY 2011 37
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