Information for private and commercial Investors in Dalaman region
Advice of the British embassy
Why should you choose Turkey now?
· Turkey is the world's 17th and Europe’s 6th largest economy. GDP (Purchasing Power Parity) was $791bn in 2007.
· Turkey’s GNP is expected to surpass Australia in 2008 and become one of the top 10 economies in the world by 2050.
· Turkey's FDI inflow was $21.9bn in 2007.
· Turkey is one of the world’s biggest markets with a population around 72 million of which 40% are under 22. Turkey has
the world’s 13th largest urban population (about 50 million).
· Turkey has a highly dynamic private sector.
· Turkey is the direct springboard to Central Asia & Northern Middle East.
· Ongoing EU Accession Negotiations, which are the key driver for change in Turkish business environment, give rise to a
lot of business opportunities in Turkey.
Page : http://ukinturkey.fco.gov.uk/en/doing-business/help-for-uk-companies/why-choose-turkey1
Purchase of property in Turkey
The law allowing the sale of property to foreigners was temporarily suspended in April 2008. Following ratification and signing by the Turkish Government on 4th July and approval by the President and publication in the Offical Gazzette on 14th July, Turkish Authorities have confirmed that foreign nationals will now be able to buy property in Turkey in line with the new act.
A decree is now being passed to local deeds offices.
Background Detail
In real terms foreigners can only own up to a maximum of 2.5 hectares (25,000 m2) of land and property. Upon application the Council of Ministers may use its discretion to increase this threshold to a maximum of 30 hectares (300,000m2) providing this figure does not exceed a total of 0.5% of the land area of the province in question.
Foreign nationals and foreign commercial companies are not allowed to buy property in strategic military and security zones in Turkey.
Please note that to purchase real estate/land in Turkey, conditions of reciprocity, complying with legal restrictions apply. In implementation of the reciprocity principles, it is essential that real estate acquisition rights given by a foreign country to its own citizens and to commercial companies established in foreign countries, according to the laws of these countries are also given to the citizens and commercial companies of the Republic of Turkey. As detailed in the Turkish Embassy website, the United Kingdom and the Republic of Turkey have full reciprocity regarding real estate acquisition.
Please access the Turkish Embassy website for more information.
Criterias for an investment in the Dalaman Region
- Central destination airport: Dalaman Airport
- To reach inbetween 3 - 4 hours with direct flight
- Only 15 min. transfer time from Dalaman Airport to Sarigerme, Dalaman, Ortaca
- First Class Tourism area since 2006
- Mediterranean ( subtropical ) climate and flora
- health area with natural sulphur and mud bath
- 29 km Dalaman Stream
- 22 859 ha planning area
- 7 sub-regions on planning land
- 8789 ha tourism investment area
- 70 000 bed capacity will be formed
- New golf course developments in Sarigerme and a second one is planned in Akkaya ( inbetween Ortaca`s and
Dalaman`s mountains)
Hilton Dalaman Golf Resort & Spa in Sarigerme
For Hilton News about this development please click on the image!
The Hilton Hotel Corporation has announced a €100 million franchise agreement which will see the creation of an up-market golf and spa resort near Dalaman, a rapidly developing tourist area on Turkey's Mediterranean coast.
The 384-room Hilton Dalaman Golf Resort & Spa, located on the Blue Flag-awarded beach at Sarigerme, will open at the end of 2009 and boast its own spa complex and 18-hole golf course.
"This announcement will be a major boost for the property market in Dalaman, with the area's developing tourism infrastructure, including this international golf resort, having a very positive affect on local demand and property values," says Dominic Whiting, editor of the Buying in Turkey guide.
High-quality apartments actually overlooking the golf course and beach are currently available for £95,000; villas from £135,000. These values are expected to rise significantly as the Hilton resort comes online next year, with Dalaman also boasting easy access from the UK via a growing number of charter flights to its recently expanded airport, which is now the country's third largest.
According to Hilton, the golf and spa project in Dalaman, which is the company's first resort in the country, marks the beginning of a period of expansion in Turkey, which has one of the world's fastest growing tourist industries with over 24 million visitors expected by Turkish officials this year.
"We plan to increase our investments threefold in this strategic market with in five years, and this investment is extremely exciting for our company, "says Wolfgang Neumann, president of Hilton Hotels Europe.
(http://www.propertywire.com/news/company-news/hilton-golf-resort-dalaman-property-200809031576.html)
- high quality tourism and property owners
- new planned yacht marina in Dalaman
- new planned big harbour for cruises and ferryboats to Greece in Dalaman
- Only 15 min. to Port Göcek, a natural yacht marina with VIP guests all over the world
(for example the Royal family, Sting, Jack Nickolson, Cher, Madonna, Demi Moore)
- Second biggest dam of Turkey (no water problems) - completed 2010
- Exellent Infrastructure: for example countless buslines in every direction all over Turkey, private schools, english speaking doctors, dentists and hospitals in Dalaman and Ortaca ( also new build Letoon Hospital with international translator service in Fethiye 50 km), various companies (also international) , all legal offices you need in Dalaman and Ortaca, foreign police offices, international food in big supermarkets, ferryboats to Greece (Rhodes) from Fethiye at present.....
- Lykia Dreamhouse solictor/lawyer service:
We always recommend our english speaking solictor Mrs. Berna Babaoglu-Ulutas, Dalyan, to help you through the purchase stages, she is also listed at the website of British Embassy in Izmir!
- Lykia Dreamhouse all around after sale service :
No fears - we do not finish our job after your purchase.
We offer full service what ever you need - click only on button for "Service" to have a good look what we can do for you!
Why invest in Real estate?
Property is a tangible asset that gives people control over their future. Historically, residential property has doubled in price every 7 years and should therefore be viewed as at least a medium-term if not long-term investment. Although there will inevitably be short term fluctuations in market prices, property has always provided a consistent long term store of value for anyone who owns it.
Overall, 90 per cent of investors have either previously bought a property off-plan or are seriously considering it in the future, while 70 per cent believe it can represent a good investment opportunity in the current market so long as detailed research is undertaken.
Large financial institutions and pension funds are now investing more heavily in property (particularly commercial) because it offers sound long-term gains with minimal risk, compared with exposure to the Stock Market.
The property market is relatively stable and, unlike many investments, is not subject to rapid overnight fluctuations. Property offers a safe investment provided the correct approach is adopted.
The Power of Leverage
Leverage is the term used to describe the investing of little or none of your own money to obtain substantial financial gains. Because of the widespread availability of Buy-to-Let mortgages, investors are able to leverage their money and achieve massive percentage gains from a relatively small investment.
When purchasing property, it is normally possible to borrow money from a lending institution. The majority of lenders will advance up to 85% of an investment property's value, therefore allowing you to build a portfolio of properties with a personal investment of as little as 15% of the total purchase price, provided of course you buy correctly.
Off-Plan
The prices of the new developments generally increase during construction. When the buildings project is released, it is common that values will increase on average by 10%; plus a further 10% when the show flat is finished, then a further 10% when the gardens and outside areas are completed. All this subject to the development, number of units, country etc.
Investors familiar with this process obtain very interesting benefits. They can reserve one or more apartments before starting construction. If this is the case, the developer will generally ask the investor to pay between 10 and 35% of the total price of the property whilst construction commences and the rest will be paid in installments until completition.
PROFITS ARE MADE WHEN YOU BUY NOT WHEN YOU SELL
Buy well!!! Know when and where to buy.
Depending on the location of a development, they all generally increase in price an average 10-15%, sometimes more.
Profit is made on total price, even if only a down payment is all that has been paid.
Developments are built over a 1-2 year period.
All properties can be re-sold at any time.
Rent after purchase
As a concept, Buy-to-Let works so well because the rent you receive would normally be more than the interest you pay on your mortgage. Your holding cost is therefore nil, allowing you to benefit from the property's long term gain in value at zero cost to yourself. This only works if you are able to find a tenant, so it is wise to keep informed about the rental market.
Rental demand continues to grow at a rapid rate and is supported by many factors, including:
House prices are too high for many potential buyers (particularly first time buyers) who are choosing to rent instead.
An increasing number of single people and students prefer to rent, as it gives them flexibility of movement.
Shorter working contracts are leading to individuals seeking greater flexibility and mobility.
Loss of social stigma associated with renting.
An increasing level of personal spending, and the consequent decrease in saving, mean that fewer people can afford the deposit necessary to join the property ownership ladder.Is there a good infrastructure?
How much rent can I charge?
What ever the market rate is for your property. Obviously in peak season the income will be higher. Importantly your investment property should take into consideration the local amenities such as entertainment, shopping, access, facilities which will determine the rental value. Golf shares can also be important.
Fractional Ownership with Family or friends
What is the difference to Time-Sharing?
Timeshare is normally owned for weeks and Fractional Ownership gives you freehold rights so the share can truly be inherited.
Fractional Ownership interest continues to set new trends in the real estate market. The scheme is a rapidly growing alternative to the high cost and financial obligation of whole or outright ownership, allowing owners to buy a home for a fraction of the usual cost.
The deal is family members, friends and investors can join forces to buy a place. Costs are cut, outgoings are reduced and everyone gets to enjoy a place that's much more than just a hotel room.
Fractional ownership offers individuals the opportunity to own part of a fabulous property. A lifestyle and luxury. We're talking apartments on exclusive developments will all types of facilities, pools, club houses, golf courses. Luxury villas with private swimming pools or apartments with breathtaking sea views. Villas, Apartments and Town Houses that would otherwise have been sold outright can now be purchased in multiple owner shares.
High quality locations and developments or properties you may not normally afford in the best locations .
One of the main reasons people buy fractional, even when they can afford the entire purchase, is that the expense and responsibility of ownership is reduced unlike owning the property outright. Many of the fractional developments are in high-end resort locations, where condominium or property ownership is priced at the high end.
This makes the second home truly a vacation, as you can simply go there knowing everything is in order and organised and the investment will be reflected in the high quality experience during your stay. At the same time, you have the deed to the property, and you can pass it down through generations in your family, or resell it through a broker.
We have a recommended english speaking solictor who we work with regarding freehold purchases and who is also experienced with the turkish laws of fractional ownership. All purchases and set up of turkish companies in Turkey are made through notaries. This also offers additional cost savings, which can be explained fully by our advisor.
1. Legal Information for Private Investors
You are only a private Person or private family and want to invest in a property in Turkey? You have got lots of questions all around the theme "Buing a property abroad"
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2. Legal Information for Commercial Investors, foreign Companies
Real Estate Investment
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Information in generally about Investment or setting a company in Turkey:
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