Turkish Riviera - What Makes It An Attractive Real Estate Investment Opportunity?

Standing between the Eastern and Western tradition, Turkey is today one of the hotspots of Europe. The Turkish Riviera, also known as "The Turquoise Coast", encompasses thousands of kilometers of shoreline, crystal clear waters, and it is literally strewn with ancient cities, harbors, memorial tombs, beaches, little coves, lush forests and streams.

Purchasing properties located somewhere along the Turkish Riviera is becoming an increasingly profitable business with more and more home owners and real estate investors coming from around the globe. The combination of a favorable climate, warm sea, the hospitality of Turkish People, and abundant natural and archaeological points of interest makes this stretch of Turkey's coastline a popular destination.

One of the most important cities of the Turkish Riviera is Marmaris which is on track to becoming one of the top performing European real estate markets. Marmaris real estate offices are selling all kinds of property, including villas, apartments and houses, in addition to commercial properties and extensive land areas. The sea and sun, nature and history, along with several top level marinas make Marmaris property appealing to jet-to-let investors, tourists, and sailing lovers.

But still, what makes Marmaris real estate market such a potential money spinning investment? The short answer contains several keywords: price and liberal legal framework on top and above the setting, beauty, and climate.

The town of Marmaris is located at the meeting place of the Aegean Sea and the Mediterranean Sea, a harbour surrounded by pine-clad hills. It is Turkey's most sophisticated and multi-faceted holiday resort. This makes Marmaris real estate an inviting world of hotels and apartments for leisure and business visitors. Marmaris has its own charm and an exceptional natural beauty, even though its traditional architecture has been less vividly preserved when compared to other coastal towns. In addition, Marmaris is a very popular wintering location for hundreds of cruising boaters and tourists, also providing regular blue cruise tours, yacht charters combined with the Greek islands, diving tours and daily tours to archeological sites.In addition to all travel services there are also ferry services from Marmaris to the Greek island of Rhodes.

Considering the natural beauty of the city location, it goes without saying that yachting and the tourism industry is the main source of income for Marmaris. In short, we can say that Marmaris has become "the Sailing Holiday Center of Turkey".

As is usually the case, tourism goes hand in hand with a flourishing real estate industry, and Marmaris real estate market is no exception. There are all sorts of Marmaris properties available, either for sale or for rent, from gorgeous villas, stone cottages to city central complexes of sunny duplex apartments. Investors are keen to get the opportunity to purchase prime development land overlooking beautiful picturesque areas, such as Orhaniye Bay, where even the famous Roman Abramovic recently decided to invest.

After starting talks with the EU, Turkey experienced economic growth, which particularly kick-started a boom in Marmaris property prices. Even so, the Marmaris real estate market is comparatively much cheaper than housing markets in Spain, France, the US and Italy, all of which were formerly much preferred by jet-to-let investors.

The option to "live and let" is certainly alluring to a lot of people, thanks to the binary possibility offered: use the property for some of the year yourself and let it out for the rest. That makes Marmaris property such a good investment.

The foreign purchase of Marmaris real estate is widely supported by the Turkish government. The principles governing the purchase of property by non-Turkish individuals or companies, established back in 1934 through the Property Law, were last amended in January 2006, bringing notable changes especially with regard to size limitations. Essentially, the Property Law is predicated on a reciprocity clause, allowing foreigners to buy properties only within municipality and no more than 25,000 sqm of land, constructed or not. For bigger land surfaces, the special consent of the Turkish Council of Ministers is required, which authorised to increase the limit up to 300,000 sqm per person provided that the foreign national ownership of real estate does not exceed 5/1000 of land in any designated province.

Therefore, with such an investor-friendly governmental policy, it is easy to see why more and more foreign investors have entered the Marmaris real estate market.

Gurhan Ebren is a retired naval officer and currently runs El Paso Travels, a Marmaris travel agency specializing in yacht and gulet charters and cruises in Turkey. You can learn more about the blue cruises which visit Cnidus and other sites at http://www.elpasotravel.net/itinaries.htm

Renting Out Your Turkish Investment Property

Many people buying investment property in Turkey want to rent their property out for part of the year. The promise of rental returns on top of strong capital growth has attracted investors; while those buying primarily for their own use often decide that a few weeks rental can cover the cost of maintaining their property. The Turkish holiday rental market has huge potential with the country expecting 24 million foreign tourists - of whom well over a million will be British - this year.

"The start of low-cost flights into the Turkish resorts, with Easyjet now flying Gatwick-Dalaman four times a week, will be a huge boost to the fledgling holiday lettings market," explains Dominic Whiting, editor of the Buying in Turkey guide. "However, at present, it is much less developed than in countries like France or Spain and property buyers should have lower expectations."

Property buyers should also bear in mind that rapid development has created a large pool of rental accommodation, with an over-supply in some of the Turkish

resorts.

"This doesn't mean it isn't possible to earn a good income from rental - easily enough to cover maintenance costs and bills. But it makes it very important to choose the right kind of property in a good location, if rental is a primary concern," says Dominic Whiting, editor of the Buying in Turkey guide. "It is also unwise to rely on rental income to finance your purchase, no matter what the estate agent promises!"

The rental season in the coastal resorts in Turkey is May-October, with July and August the busiest months. In resorts such as Alanya, Altinkum and Kusadasi, which are popular with families, apartments and small villas on complexes are the easiest type of property to rent. While in the more upmarket resorts, such as Kalkan and Kas, which are popular with independent travellers, large villas with pools offer the best rental returns. The Aegean resort of Cesme, which is very popular with Turkish holidaymakers from the major cities, has a buoyant rental market in summer with gross yields of 5-6% possible. However, serious buy-to-let investors should look to the main Turkish cities where the rental market is year-round and solid yields can be achieved.

Many Turkish developers provide management services, including cleaning, gardening, maintenance and welcome baskets, for a set annual fee or a commission of 15-20% of the rental income. Good management is essential, particularly if you are not around to look after your property yourself. Marketing your property is also important. Some specialist travel companies offer contracts for suitable properties in areas like Kalkan and Bodrum. But most owners choose to advertising in the local press or on the internet, while others rely on friends and family to spread the word.

Guaranteed rental schemes

Rental guarantees are sometimes offered by estate agents or developers in Turkey. Simply put, these guarantees are a commitment to return a percentage of the purchase cost of a property to the buyer each year for a fixed term. Ostensibly, the developer recoups this money by renting out the property. This sounds an attractive proposition, but rental guarantees should be examined closely.

Firstly, unscrupulous companies may simply be inflating the sale price of the property in order to cover the rental. Buyers should shop around carefully to see the cost of comparable properties in the same area. Find out whether the developer has an agreement in place with a travel company or lettings agent. If not, then how do they plan to find tenants and ultimately pay the guarantee. Examine the fine print of your contract to see who is actually guaranteeing you the money.

"Rental guarantees are marketed with alarming regularity," says Paul Owen, CEO of the Association of International Property Professionals. "The simple rule is: if it is not in the contract, it's not guaranteed. Potential rental incomes are often re-classified by salesmen as 'guaranteed', though this is never in writing. Check the contract and recognise that 'no mention' means 'no guarantee.' Even rental guarantees in the contract should be scrutinised by an expert. Make sure you hire a lawyer to check them before you sign anything."

For more information about Turkish property get the Buying in Turkey guide, available online at www.buyinginguides.info Amazon.co.uk or good bookshops. Or for a free consultation with a Buying in Turkey adviser call Tel: 0845 351 3551, or complete the online form at www.buyingin.co.uk