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"Rental yields of 5.48 per cent in Turkey are higher than in many other traditional European second home destinations, according to Global Property Guide - which this month recommended the country as the best place to invest in Europe.
In contrast, traditional second-home destinations such as France, Spain and Portugal have lower yields at 3.85 per cent, 3.81 per cent and 3.63 per cent, respectively.
"Investors can buy a one-bedroom apartment in Istanbul off plan from around £40,000 or a completed new-build apartment from £75,000 - property remains cheap in Turkey," says a business professional.
Mortgage brokers are also seeing an interest in Turkish property. Conti, which specialises in overseas mortgages, has reported a steady increase in requests for quotes for Turkish properties in the past year. Turkey is the third most popular location, behind France and Spain, based on mortgage quotes issued by the mortgage broker so far this year. In May, the number of quotes for Turkey was double that of the previous month.
"Many say that 2009 was Turkey's year, but the signs suggest that 2010 could be even better," says Clare Nessling, operations director at Conti. "Because it's outside the eurozone, it has been attracting an increasing number of holidaymakers who are looking for value."
Simon Smallwood of International Private Finance says: "The Turkish market became popular fairly late in the last property cycle and, as a result, didn't see some of the huge over-development seen in markets like Spain. Hopefully, this will ensure it performs robustly during these difficult times."
According to Global Property Guide, Turkey is attractive due to low prices per square metre, cheap round-trip costs and a relatively attractive tax regime. Also, properties owned for more than five years are exempt from local capital gains tax.
The country has promising growth prospects, too. "Turkey hasn't been as badly affected by the financial crisis," says Johnson. "Gross domestic product is expected to grow this year, with the Organisation for Economic Co-operation and Development predicting GDP growth of 6.7 per cent per annum for Turkey from 2011." This is the highest growth forecast for all OECD member countries.
