Demand for property in Europe has risen significantly in recent months, as political and economic uncertainty has left the euro weaker than the both the pound and the dollar. Increased spending power among British and American buyers has made European destinations such as Portugal and Spain more affordable. Indeed, on HomesGoFast.com, Spanish property is now the most popular in the world.
While attention has been firmly focused on European opportunities, though, Turkey has also became more attractive to overseas investors, thanks to the weakening lira. The combination of favourable currency exchange rates, high interest rates for savers and low living costs makes Turkey particularly appealing to British property buyers and expats.
Sterling has gained around 14 per cent against the Turkish lira since the start of 2015, with the current exchange rate approximately Â£1/4.12TL. Compared to May 2014, the Turkish currency has got even cheaper for British people with today's rate around 18 per cent better than a year ago, and compared to five years ago it has swung 85 per cent in favour of British people.
"Lots has been made of the weaker euro benefiting Brits buying and living in Eurozone countries, but let's not forget Turkey," comments Julian Walker, director at Turkish estate agency Spot Blue International Property.
"As it is, we typically sell Turkish property in euros to British people. After that, British people gain again when they buy lira for day-to-day living costs. Even taking into account Turkey's inflation rate, which is forecast to remain on a gradual downward trend, the exchange rate is making a difference for British owners and expats. Over the last 12 months, let alone the last five years, Sterling's gain against the Turkish lira has been greater than it has against the euro."
The high interest rates offered to savers in Turkish banks is also benefiting British expats. As of May 2015, local banks are typically paying 8-9 per cent interest on deposits in specified Turkish lira savings accounts, with interest paid monthly.
"It's not uncommon for British people to fund or part-fund their monthly living costs in Turkey using interest earned on savings in their local bank," adds Walker.
Meanwhile, Post Office Travel Money confirmed this month that tourist prices in Marmaris, used as a barometer for the British holiday market in Turkey, are now lower than last year. For investors, golf resort developments also have the second strongest mid to long-term growth potential of all countries in the European Mediterranean region, according to KPMG's new report, Golf Resorts in the European Mediterranean Region.
While Spain, Portugal, Italy and France have higher levels of supply, Turkey is now leaving the way within emerging markets and accounts for 7 per cent of the pan-regional supply, with the fifth highest number of coastal integrated golf resorts in the region.
Overseas property portal TheMoveChannel.com confirms that interest in Turkish property is rising among both holiday home hunters and investors, with the country rising one place in its latest Top of the Props rankings to become the ninth most popular destination in the world.