Turkey has been highly sought after as a holiday destination for a long time with around 25 million tourists flocking to the stunning beaches along the Turkish coast each year. A vibrant, modern country of great diversity, not only rich in natural beauty with breathtaking waterfalls and mountains, pristine beaches and lagoons, it is also steeped in historical and archaeological treasures dating back to the Roman, Byzantine and Ottoman empire.

Turkish property still offers enormous potential for returns on investment. Last year alone, property prices rose by around 50% with more people looking to purchase homes in Turkey . This extra demand is set to push prices up drastically. Taking into consideration the country's many attributes, Turkey can hardly be rivalled in any other investment location with similar assets.

Reasons why property in Turkey is a good investment

•  Turkey is just entering the EU process which means there remains another 5-10 years of European investor interest in property

•  Turkey is just at the beginning of a property boom

•  Turkish economy is very strong with 5.5% GDP growth in 2005

•  Stunning beaches and climate make it a very popular holiday destination

•  You can still find excellent front-line properties for excellent value for money with high capital growth potential

•  Turkish summers are a lot longer than in many other EU destinations, offering more hours of sunshine per annum

•  Turkey has a huge population of 70+ million. This creates a strong internal property market meaning investors are not reliant on international investors for re-sales

•  Turkish population growth is around 2% per annum with 70% of the population younger than 30, this creates a strong local market

•  Over 25 million tourists visit Turkey each year boosting the property market and creating strong "buy to let" possibilities

•  Low cost of living and long summers make it a favorite retirement spot for the European

•  Huge golf tourism evolving in Antalya which will increase the value of any investment Turkey offers a modern infrastructure

•  Turkey is considered to be a highly dynamic country by the World Trade Organisation

•  Land prices are on the increase while the property market evolves

•  No capital gains tax after 4 years

Purchase Procedure

Once you have found your ideal property in Turkey and have decided that you would like to purchase you can usually expect to follow the procedure below:

Reservation Contract

The reservation contract takes the property off the market, usually for between 2 - 4 weeks, allowing time for the appointed legal advisor to carry out the required searches on the property in question. Usually a reservation fee of between €3,000 and €6,000 is paid at this point.

If you do not continue with the purchase due to a legal problem then you should contractually be entitled to a refund of the paid reservation fee, although this is not always the case. However, if you decide not to proceed owing to a change of heart or mind then it is standard that you will lose the reservation fee.

If you decide to proceed with the purchase then the reservation fee already paid is treated as part of the payment towards the property in question.

Preliminary Contract

After the reservation contract is signed and the required fee is paid, you are presented with a report containing the findings of the legal checks. Subject to the report, you then sign the preliminary contract and at this stage you will be expected to pay the required deposit. On a resale property, this is typically 10% and on an off-plan (new) property you must expect to pay varying amounts of around 30%.

If necessary, at this point in the process the vendor is required to apply for permission for you to purchase a property in Turkey .

With off-plan property purchases in Turkey the buyer may be expected to pay a number of stage payments throughout the construction process.

Completion

Once all parties are ready to proceed the property sale is completed. The buyer pays the required tax payments and the final contract or deed of sale (Tapu) is signed. The signing of this document means that the land ownership is transferred to the buyer. This is usually done at the land registry office.

Once signed, the deed of sale (Tapu) is registered in the land registry.

Off-Plan Security For Buyers

In Spain and most other countries where full or part payment is made before the property is fully constructed, a bank guarantee must be in place to ensure that should the developer go bankrupt before completion of your property, your money is 100% safe.

In Turkey this is not a requirement and owing to the early stage of the overseas property market in Turkey and the comparatively immature banking systems such guarantees are either impossible or very expensive.