Buy-to-let tourist rentals in Turkey are thriving thanks to a surge of British visitors caused by the favourable exchange rate, an investor has noted.
Libby Garside told the Daily Mail that she and her husband Ted rent out their villa in the Mediterranean coastal resort of Kalkan when they are not holidaying there with their daughters.
Observing a rise in demand from Britons for its use, she said: “More consumers seem to be looking to Turkey as a holiday destination due to rising costs in more traditional European resorts and also because of the terrible sterling to euro exchange rate.”
The paper stated that foreign exchange firms have also seen a rise in the trading of sterling for Turkish lira and Egyptian pounds as tourists look for cheaper alternatives to the eurozone.
In contrast, it observed, the poor return on UK pounds converted into euros is making travel to many traditional destinations more expensive.
Turkish lira could be even less expensive soon as the value is expected to drop with an anticipated cut in the country’s interest rates, overseas investor magazine BuyAssociation has noted.
It said this could effectively make Turkish homes seven per cent cheaper.
A conservative mortgage market has shielded Egypt from the worst excesses that led to the global economic downturn and left the country’s real estate market in a prime position to move forward in 2010, it is claimed.
Egypt will be one of the most attractive destinations for real estate investors in 2010, delegates were told at the first Global Trade Matters Real Estate Egypt Conference which included panelists from the top ranks of government, the private sector and academia.
They also heard there is still plenty of opportunity for expansion in Egypt as GDP and demographic growth continues.
Iman Ismail, managing director of EMRC, said conservative lending was the main reason that Egypt did not experience the kid of catastrophic collapse seen in the US real estate market. ‘Egypt’s small mortgage market only started to develop over the past six years so we have been shielded from the global real estate crisis,’ said Ismail.
A good economic outlook will boost the property sector according to Zaki El-Guiziri, vice president of the Talaat Moustafa Group. He predicted that the country’s growth rate will be above 4% in 2009 despite the global crisis.
‘If this growth continues, as is expected, there will be many benefits for the real estate industry. A large part of the population is marriageable age or below. This will ensure demand for years to come,’ he added.
The fact that Egyptians like investing in property means that the industry does not rely as much on foreign investment as other emerging property markets, according to Hala Bassiouni, managing director of the Egyptian Finance Housing Company. ‘Egypt has a culture that loves fixed assets. People feel it is very important for young couples to have a house bought before they get married. They buy houses for when their children get married or for investment,’ he explained.
Prime country property in the UK rose 2.3% in the final quarter of 2009 and has seen an incredible performance in a tough market in the last 12 months, according to a new report.
The price of prime country properties in now increasing across the country as the recovery that started in London during spring 2009 continues to spread further into the regions, says the latest Prime Country House Index from Knight Frank.
‘Prices are now just 2.6% lower than they were at the beginning of the year. An incredible performance considering the general mood of economic gloom that followed the collapse of Lehman’s little more than a year ago,’ said Andrew Shirley, Knight Frank’s head of rural property research.
Property prices in the Home Counties have shown particular resilience, ending the year 1.4% higher. The north of England and Scotland are recovering more slowly with prices down 11% on an annual basis, but up 0.5% in the last three months of the year, the report also shows.
‘There are a number of reasons for this upturn in property prices, but the overriding factor is an imbalance between supply and demand. What we are seeing is an increasing number of people competing for s diminishing pool of properties,’ explained Shirley. Across Knight Frank’s network of country offices the number of new potential buyers registering increased 50% last year and the number of sales grew 28%. At the same time, however, the volume of available property fell by almost a third.
Shirley said that potential purchasers are more confident because they feel prices have reached the bottom and are no longer worried about buying into a falling market. The cost of borrowing remains low and credit availability is gradually improving, adding to the optimism.
‘Around London we are also seeing an increasing number of overseas buyers returning to the market with demand for properties over £5 million growing significantly towards the end of the year,’ Shirley added.
So 2009 was an interesting year with the credit crunch still lingering… will 2010 bring even more positive news to the property sector in the form on stable, sensible growth? What do you think? (please comment below…)
Personally I think it will stay stable and growth for the next couple of years will be relatively small and sensible. Then I see larger growth starting to happen, nothing crazy but sustainable, solid economic growth. I don’t think there will be a “double bounce” that some doom and gloomers predict which is why I’m personally buying more property this year as I think any serious investor should be!
I’ve so far bought a 1 bed apartment in Makadi, Egypt (available on our website here: www.colourinvestments.com/makadi/introduction) and also a 7 bedroom HMO property in Reading, Berkshire UK. What have you bought if anything? (again please comment below and share you views with us)
Good luck in 2010 and I hope we can help you achieve some of your investment goals in 2010