The global economic downturn had led to a huge shift in attitude towards overseas property investment, with many choosing to hold off until economies show signs of improvement. However, the Turkish property market seems to have defied this trend, continuing to flourish despite the negative impact felt by other countries. A number of possible reasons for this have been indentified.

Turkey’s economic and political circumstances have undoubtedly contributed to the country’s growing property market. Mediterranean destinations once popular with tourists and property investors have been somewhat shunned as people consider alternative non-eurozone locations, where they’ll get more for their pound. Turkey’s tourism has benefitted significantly from this change, and investors have turned their attention accordingly.

Turkey’s application to the EU has also contributed to increased confidence in stability of the country’s economy. With property investors taking advantage of new government laws surrounding foreign property ownership as they make investment decisions; Turkey is starting to seem like the obvious choice.

Cheap flights lead to repeat visits, so Turkey has also seen the advantages of numerous budget airline routes to and from UK airports. This increased accessibility ensures continued rental income throughout the year – and when tourists arrive in Turkey, the low cost of living means they can eat, drink, shop and visit attractions without breaking the bank!

With such a wide range of destinations – cities like Istanbul and coastal resorts that offer visitors the opportunity to completely relax, as well as a unique blend of European and Asian cultures, there are also plenty of reasons for visitors to return again and again to Turkey, each time sampling the delights of a new part of the country. From Istanbul to Bodrum, Fethiye and Antalya, the Turkish tourism industry has wide appeal and caters to a variety of holiday maker’s requirements.

All this, coupled with an enviable Mediterranean climate – with almost year-round sunshine and scorching temperatures – there’s every reason for tourists to hold such high regard for Turkey…and where the tourists go, the property investors will follow as they cash in on rental opportunities. Flats, apartments, villas and traditional houses available to foreign investors mean that prices suit a range of budgets.

All of the factors described above serve to illustrate the varied reasons that demand for property in Turkey continues to rise despite a troubled global economy. If you’re considering overseas property investment, there’s huge potential across the country – whether you’re looking for a holiday home to make frequent trips to throughout the year, or if you’d like somewhere to provide you with an ongoing additional income.

A recent report in the Daily Mail has been outlining the potential benefits of buying a property in Turkey, as factors such as the strength of the Euro, the relatively low cost of living, and superb climate produce a seductive combination for potential investors.

Since the relative strengthening of the Euro in relation to the pound, people looking to buy property overseas have tended to focus on countries outside of the Eurozone, with Egypt and Turkey seeing increased interest in recent months.

Stephen Hughes, Director at Foreign Currency Direct told the Mail that they had seen an increase of 36% in exchanges of Sterling into Turkish Lira. Hughes went on to say “The Turkish Lira has increased by 6.5% against the pound in the past year, which means that those who changed to lira find their money goes much further than before.”

Whilst many investors have been attracted by the opportunities in the major cities such as Istanbul, the majority of the investment from abroad has looked to capitalise on Turkey’s rapidly expanding market for tourism. In particular, resorts such as Bodrum, Fethiye and Altinkum have proven exceptionally popular with both investors and holidaymakers looking for a permanent home in the region.

A new report out this week from Jones Lang LeSalle has provided good news for the Istanbul property market. The new report, entitled Istanbul Real Estate Review, has shown that despite the challenging global economic climate, the market for residential property in Istanbul remains extremely buoyant, with signs showing strong potential for further growth.  The report details how Istanbul offers considerable opportunities for people looking to buy property in the region as the increasing levels of demand for residential real estate in Istanbul continues to outstrip supply.

The major factor affecting the prices of property in Istanbul is the shortage of available land for development in and around the city centre, which has resulted in a number of developers announcing larger projects around the periphery of the city. These developments have done little to appease the considerable demand for property in the central region, which is estimated to be around 250,000 new units per year until 2015. Current supply levels are estimated to be around 180,000 units per year, resulting in increased demand.