It would be fair to say that the past few years have been something of a mixed bag for Turkey properties, because while global downturns and rising levels of civil unrest in neighbouring countries have threatened to push investors away from Turkish shores, the growing popularity of dynamic cities like Istanbul to both businesses and tourists have attempted to balance the scales.
Now, it would seem, is a good time for potential buyers to consolidate the facts and make an informed buying decision.
When the global recession took hold, Turkey took a hit along with the rest of Europe and the world. As tourist rates fell, so too did occupancy rates of its previously buoyant hotel industry, with cities like Istanbul to coastal resorts like Akbuk reporting drops in worldwide investor interest. In 2009 this culminated in reduced revenue for hotels across the country, and then a fall in average rates for residents, which of course had a negative knock-on effect on potential investors.
However, according to STR Global research, Turkey’s emergence from the downturn looked more like a ‘V’ than a ‘U’, and while many economies are still struggling to get back on their feet, Turkey had recovered, hotel occupancy rates reflected this by getting back to their pre-recession best by 2010, and investor interest was up once again.
Istanbul bolsters Turkey tourist rates
Tourist rates climbed again, aided by Istanbul’s European City of Culture 2010 title, and the city also began to make a name for itself on the corporate conference scene, with the International Congress and Convention Association (ICCA) ranking it 13 in the world for number of corporate meetings hosted. With the corporate travellers visiting Turkey, along with a new wave of tourists, hotel rates grew alongside occupancy levels.
Though it was not too long before this resurgence in terms of visitor numbers and investor enquiries stuttered once again. Increasing levels of civil unrest in neighbouring countries like Egypt and Libya threatened to heavily impact on democratic Turkey, because while Turkey is politically stable the bad press curbed the crucial tourist numbers.
Rebellion threatens Turkey progress
Rebellions in northern Africa pushed this corner of the world onto the front pages of newspapers across the world, and countries like Turkey, Israel and Malta all saw a fall in tourist levels as a result. But property investment interest has not followed suit so far, and despite unrest across the region, Turkey investors have held their ground, perhaps seeing the conflict as a short-term shift, rather than something capable of having a long-term impact. And it should be noted that Turkey’s noisy neighbours have even given it the chance to shine as democratic and fair amid hostility and oppression.
If nothing else, Turkey has proven its resilience in recent times. Emerging from a downturn in a strong position, then managing to maintain investor interest after the Egypt and Libya debacle, shows that economically and politically the country is in a strong position. The fact that investor interest has stayed strong in recent months is a positive sign, and going forward investors will no doubt be hoping that Turkey can remain immune from the gloomy economic and political news that currently encircles it.