Turkish turmoil good for investors
Anyone with an interest in Turkey will have been monitoring news coverage closely, and what the fall in the value of the currency, the Turkish Lira, means for property investors in the country.
The current political turmoil in Turkey threatens to undermine all the economic progress made in recent years and further growth in the country's property market - at least this is the nightmare scenario that springs to mind whenever political upheaval rears its ugly head in Turkey.
However, according to real estate agency Universal21.com, the current crisis is more likely to bring opportunity for investors in the short term as the value of the Turkish Lira has fallen versus the Euro, GBP and Dollar currencies.
Adil Yaman, Director of Universal21.com, said: "As we saw in early 2013, unrest and political upheaval can result in a loss of confidence amongst overseas investors in the short term, such as the protests which took place in Gezi Park in early 2013.
Naturally, some investors who remember the political problems experienced in Turkey in the past fear a return to the bad old days. This actually creates an opportunity for investors who think long term and believe that the progress made by Turkey is sustainable and on the right track."
According to Universal21 there has never been a better time to invest in property in Turkey and with this month's 6.3 percent fall against the US dollar property prices will be lower in some currencies than they were this time last year making Turkish property even better value.
The current political problems in Turkey, which were caused by a corruption scandal, have put Prime Minister Erdogan under pressure and the Turkish Lira is expected to be affected for some time until the situation in the country improves.
"The uncertainty at the moment is likely to have an impact on short term investment in the country, however investors should remember that property investment is for the long term", added Yaman.
"The fundamentals for a strong and growing property market remain in place."
Housing demand resulted in growth in the construction sector in 2013 and there remains strong interest from investors from the Middle East, The U.K. and Russia in Istanbul property.
The modernisation of existing housing stock, the transformation of urban areas and the multi-billion pound investment in transport and infrastructure provides a glimpse into the long term potential of investment in Turkish property.
Andrew Batt, International Group Editor of PropertyGuru Group, wrote this story. To contact him about this or other stories email andrew@propertyguru.com.sg
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