Turkey’s Coastal Property Market Gains from Rise in Blue Flag Beaches

House-hunters looking for an overseas property near a clean, safe beach are spoilt for choice in Turkey, says Turkish property specialist Spot Blue, thanks to 383 beaches there being awarded Blue Flag status this year, the most the country has ever achieved and 59 more than in 2012.

Turkey now has the third highest number of Blue Flag beaches out of all 48 countries that participate in the Blue Flag scheme, which is recognised globally and organised by the Foundation for Environmental Education (FEE). This puts it ahead of France, which this year drops to fourth from third. Turkey also has 21 Blue Flag marinas, currently the seventh highest number.

“While some countries are falling down the rankings, Turkey is raising its game and improving the quality of its beaches and marinas,” said Julian Walker, director at Spot Blue. “The knock-on effect is positive for the property market – being near a Blue Flag beach can only help a property hold value. Unsurprisingly, Antalya on Turkey’s Mediterranean coast now has a staggering 179 Blue Flag beaches, more than double that of any other Turkish region – Mugla has the second highest number with 76.” Three beaches in Istanbul on the Sea of Marmara are also on the list.

To be awarded a Blue Flag, a beach is assessed on water quality, environmental management, safety and services, and availability of information about the environment. Out of Turkey’s 21 Blue Flag marinas, seven are in the Mugla region, six in the Antalya region, two in Istanbul, two in Aydin, two in Izmir, and one in both Balikesir and Yalova.

Turkey now has the third highest number of Blue Flag beaches out of all 48 countries that participate
 in the Blue Flag scheme.

“The latest Blue Flag list highlights just how untapped much of Turkey’s coastline is,” continued Julian Walker. “Away from the main resorts, there are dozens of stunning beaches and bays that many foreigners never encounter, real gems each with a selection of properties to choose from. The Bodrum Peninsula in Mugla is a good example, where the smaller resorts of Gündoğan, Turgutreis, Gümüslük and Yalıkavak all have Blue Flag beaches combined with stunning property to buy. In Antalya, again the popular resorts of Alanya and Side have Blue Flag beaches, but so do less well trodden but very picturesque areas, such as Çamyuva or Göynük, both near Kemer.”

In Gündoğan, Spot Blue is selling new three-bedroom, two-bathroom duplex villas on a smart development just a 10-minute walk from the Blue Flag beach, with prices starting from €142,296. Communal leisure facilities include swimming pools, tennis, play areas and 24-hour security, and there are sea and mountain views. Bodrum Airport is 30 minutes away.

One of Bodrum’s most exclusive developments can be found in Yalıkavak, where Spot Blue has a luxury four-bedroom, two-bathroom detached villa, a short walk from the beach and also close to the Blue Flag marina, available for €425,000. Transfer from Bodrum Airport is only 45 minutes.

Meanwhile, Spot Blue is selling a furnished two-bedroom apartment on a small complex in Çamyuva. It comes with access to a shared pool and mountain views, and is only a 15-minute walk from the village centre and its Blue Flag beach. An hour from Antalya airport, it’s on the market for €86,000.

7 Tips for Safe Property Investment in Istanbul

Investing in property abroad can be a minefield for the unwary particularly in emerging markets such as Turkey say analysts at property investment firm Colordarcy.com.

Colordarcy is a leading property investment company that specialises in finding positive cash flow investment properties worldwide. Colordarcy investment property portfolio includes some of the best properties for sale in Brazil, Florida, Turkey and the United Kingdom.

Loxley McKenzie, Managing Director of Colordarcy comments, “The best place to invest for capital growth in Turkey is Istanbul. The city offers a more reliable rental market and is recognised as the hub of economic growth.

Unfortunately there are good and bad areas to invest in Istanbul as there are on some areas of the Turkish coast.”

Colordarcy offers the following seven tips should help investors avoid some of the potential pitfalls of investing in property according to

1. Carry out due diligence
Doing due diligence is the equivalent of doing homework on an investment. “Many people will enjoy a holiday in Turkey, then quickly decide to invest”, McKenzie adds, yet it is important to take a whole variety of factors into consideration before signing on the dotted line.

The first things to consider are the build quality and the location of the property and its price relative to other similar properties in the area. If it is a buy-to-let investment then you will need to look closely at the likely rental yield. Will it cover your costs and generate a profit?

2. Use a reputable overseas property company
Unless investors have good first-hand knowledge of where they want to invest, a lot of money and heartache can potentially be saved by using a reputable agent who specialises in that particular country.

There are many horror stories about investors who have sent large deposits only to find that all that money is lost when developers go bankrupt or have problems with building permits.

A good overseas property agent can give piece of mind.

3. Beware of buying off-plan
A lot of people will advise against investing in off-plan property in any country, particularly an emerging one like Turkey.

However in a growing property market like Istanbul, it can be tempting for investors to try to achieve potentially high earn returns by buying off-plan and reselling the property at a higher capital gain.

This is a high risk strategy which may not always pay off. It is far better to either buy key ready property in Istanbul and have the option to walk around the development before investing or ask an agent to source property from a developer with a strong track record.

The best place to invest for capital growth in Turkey is Istanbul. The city offers a more reliable rental market and is recognised as the hub of economic growth. Unfortunately there are good and bad areas to invest in Istanbul...

4. Make sure you obtain a TAPU (title deed) for your property
In some cases investors have had their overseas property dream turn into a nightmare when they realise that they didn’t legally own a property they invested in. This is usually because they have failed to obtain a TAPU which is the most important document an investor can own to prove ownership to the authorities.

There have been cases where property developments in Turkey have been sold to a third party leaving property ‘owners’ powerless when they try to prove that they own a particular apartment or house.

5. Take out earthquake insurance (Dask insurance)
The risk of a 7.6-magnitude earthquake striking Istanbul by 2030 is greater than 60% (Source: Guardian: A disaster waiting to happen - why a huge earthquake near Istanbul seems inevitable, 2006). With this in mind it is worth investors taking out insurance on their property to protect against such natural disasters.

Dask insurance is a special insurance introduced by the Turkish government to provide protection against the devastation earthquakes can cause. Incidentally DASK insurance is only available for property owners who can produce a TAPU.

6. Use an independent Turkish lawyer
Investors would usually employ the services of a qualified lawyer when investing in their own country and the should do the same when investing in Turkey.

A good Turkish lawyer will know property laws inside out and will be a native speaker. This will come in handy when checking paperwork.

7. Research the city
Istanbul is a large city and there are many districts within its boundaries. This can make it difficult for investors to decide on the best areas to invest. Generally it is better to invest in areas close to the city centre or Taksim such as Beyoglu.

Huge development projects including a new airport and a proposed centre for technology are set to increase the already strong appeal of Istanbul city centre among investors.

In general Colordarcy analysts advise against investing in outlying areas far from the centre unless some kind of rental guarantee can be offered.

The KDV Tax On Turkish Property

Analysts at Colordarcy say that the hike in Turkish property tax for smaller apartments means that prices could well increase by more than 18% this year. Those already owning property in Turkey or who are purchasing key ready might well benefit from the resulting uplift in 2013.

This is the good news.

The bad news is, this latest change means that KDV tax, which once amounted to just 1% on property with a closed living area of less than 150 square metres and 18% for properties over 150sqm, will now be 18% for most properties – even those less than 150 square metres.

Will this make a big difference to overseas property investors?
“Not if investors are thinking of investing in a property above 150 square metres or in many cases if a property is already built.

What may happen is, tax rises could have an impact on property values as it may push up the price of smaller apartments and, in turn, place upward pressure on apartments that are a larger size.

This makes buying off-plan apartments in Turkey a little more tricky for anyone looking for a good deal. It will depend on three things: are developers prepared to absorb the cost? The value of the land the property is built on and when they built it.” says Loxley McKenzie, Managing Director of Colordarcy.

Colordarcy are keen to point out that if investors are looking at investing in a key-ready apartment in Istanbul, then you may well escape the increase in KDV. The new law only applies to building plans submitted in 2013.

If the land is assessed as being low in value, then the KDV rate may be 8% or less, so it is best to check before making a purchase.

When asked how investors might be able to avoid the impact of the change to KDV tax on Turkish property, Colordarcy’s legal expert in Istanbul said, “Since this is now law, there is no possibility to avoid it, however, before making an investment, we do advise our clients to obtain official information from the seller which shows the KDV amount of the real estate.

For example, if the seller obtained building permission and completed other legal requirements for construction in 2012, new KDV rules will not apply to this project.

If an investor is in any doubt, it is always possible to request documents from sellers which will show if the new KDV rate has been added to the value.”

Interestingly the new KDV tax law will only apply to new build properties sold by developers and not to those properties exchanged privately or those that are considered used.

Investors should not be too worried by this development according to Colordarcy, as the tax will be a direct cost to developers, though there is a strong chance they will pass it on to the buyer at some point.

Large developers may well delay passing on this cost to gain an advantage over smaller competitors. Even so, 75% of all properties purchased by overseas property investors in Turkey is under 150 square metres.
Colordarcy strongly advise choosing a large reputable developer, or a trustworthy property agent to ensure they get the best deal in 2013.

New law removes restrictions to foreign purchases of real estate in Turkey

Turkish parliament has just passed a new law which will allow any foreigner to buy property in Turkey. The law removes a restriction called "mutualness" where if a country does not allow Turkish citizens to buy property in that country, this country's citizens could not buy property in Turkey. With the new law, practically will be effective in the next 15 days, this restriction is removed. This will allow Russians, citizens of Gulf States and Central Asia nationals to buy property in Turkey.

This law was supposed to be effective early 2012 but Turkish property developers, who are struggling to sell their mid to high end developments, pressed to release it just before summer, the hottest time for foreign demand for Turkish properties. With this law now, developers will have a very large pool of customers especially from Arab states.

According to Kanal D Property news, Qasim Sultan Al Banna, who has been director general of Dubai Municipality since 1992, has bought 50 flats from a development named My World when the new law is announced.[1] The Developer, Ağaoğlu İnşaat, has already collected deposit from foreigners  for 740 flats in Istanbul even before the law was passed. A company from Saudi Arabia, whose citizens could not buy property in Turkey before, has paid deposit for 400 flats in near Istanbul Olympic Stadium for investment purposes. Agaoglu now expects to earn 250 million dollar when the sales of these reserved units proceed. In fact, the developer targets a whopping 2 billion dollars of real estate sales to foreigners.

My World - Source : My World

Turkey has recently became very popular among its neigbours such as Russia and Arab states. 4 million Russian tourists are expected this year alone, who do not need visa to enter Turkey and stay 1 month. There is also a growing popularity among Muslim countries thanks to popular Turkish TV shows, recent more open and friendly policy of Turkey towards them and cultural similarities. With this rule, money from oil rich Arab states and natural gas rich Russia is expected to flow to Turkey to buy property.

There are mixed forecasts about the effects of this new law on the property prices in Turkey. CEO of Ukra Insaat, Kursad Tuncel, does not see a price rise due to the new demand from foreigners. This is because of the already huge supply in the market. [1] On the other hand, some experts predict 10 per cent rise in property prices when the law becomes effective. But it is pretty much likely that the price fall, which is awaited by many Turkish home buyers, will not happen or will not be as deep as expected.

.[1] - Qasim Sultan My World'den 50 daire aldi