The Turkish Statistics Institute (TurkStat) released its quarterly growth rates on Wednesday, revealing that the economy continued to grow for the second straight quarter. The growth rate was in double-digits, in line with market expectations. Accordingly, Turkey’s gross domestic product (GDP) amounted to TL 23.35 billion at constant prices in the first three months of the year, 11.7 percent higher than a year earlier, when the economy contracted by 14.5 percent. At current prices the year-on-year growth in the GDP was 16 percent, to reach a total GDP TL 243.26 billion. When calendar-adjusted, the Turkish economy expanded by 11.8 percent in the January-March period of the year from one year earlier and grew by 0.1 percent compared to the previous quarter.

After a continuous contraction for four quarters in row, the economy rebounded at the end of 2009, growing by a higher-than-anticipated rate of 6 percent. Turkey’s gross domestic product (GDP) slumped by 4.7 percent in 2009 over a year before, well below the 6 percent year-end projections in the medium-term economic program. This was the first time Turkey saw a contraction in its economy following seven years of continuous growth between 2002 and 2008.

A transformation in foreign investments started to take place back in November and December of last year, Korkmaz told the Anatolia news agency yesterday, but stressed that this year saw a significant rise in the number of businesses wanting to invest in the country. “The projects that were suspended one year before are high on the agenda again. The return of foreign investors to the market will be noticed mainly by the second half of this year and the first half of 2011,” said Korkmaz. Last year Turkey managed to attract foreign direct investment worth $7.6 billion. This figure is expected to increase gradually in the coming months, according to him, as foreign investors’ visits to the country are on the rise. Heads of several countries’ sovereign wealth funds are willing to visit Turkey, Korkmaz said, noting that “Turkey is back on investment radars again” and that more funds will be sent to Turkey in the coming period.

According to data from ISPAT, the National Bank of Kuwait (NBK) is one of the firms interested in investing in Turkey. As the holder of a 40 percent stake in the Turkish Bank Group, the NBK plans to acquire one more bank in Turkey. The bank is currently considering buying Tekstilbank or Anadolubank. The NBK is Kuwait’s largest bank and is one of the top five banks in the Middle East.

Kuwait Investment Authority (KIA), the owner of Cevahir Mall in Mecidiyeköy, also has investment projects in the country, ISPAT data revealed. Accordingly, KIA has a special interest in the health and tourism sectors and is considering participating in the Health Ministry’s “Cities of Health” project. The authority also plans to build hotels in major tourism provinces, including ?stanbul and Antalya. KIA’s investments in Turkey have reached $1 billion so far.

Another leading Kuwaiti investment group, Alshaya Group, also has projects to increase their investments in Turkey by diversifying the sectors they operate in. Recently Mohammad Alshaya, CEO of the group, said, “Investing in Turkey is much better than even investing in the US and Japan.”

Kuwait Finance House, owner of a 60 percent stake in Kuveyt Türk Participation Bank, also wants to invest in important projects in the real estate sector.

Turkey is attracting investments from automotive manufacturers as well. Chinese automotive manufacturer Chery will build a plant in the country, in cooperation with Turkey’s Mermerciler Group, while China’s Geely also has joint investment projects with the Anadolu Group. The world’s leading truck and other commercial vehicle manufacturers, including JAC and China Truck, recently had talks with Turkish officials concerning investing in the country.

Japan’s Toshiba Corporation is preparing to expand into the Turkish energy sector by investing in nuclear energy. Leading Indian hotel chain Oberoi will also enter the Turkish market with a large hotel to be constructed in ?stanbul. The company’s operations in Turkey will be extended with more hotels planned in ?zmir, Antalya and Ankara, for which sites have been already found.

India’s software giant Wipro is also expected to start operations in Turkey by establishing an information technology center in the country.
Source: Today’s Zaman

Bodrum is not well known for its beaches yet has a beautiful promenade and bustling harbour area with the Castle of St Peter dominating the landscape here.

There are plenty of beaches close by though and Gumbet is a lively little example just next door. The quieter resorts of Torba, Cesme and Bitez are all firm favourites with families and perfect for relaxing on beautiful beaches, while Turgutreis is one of the largest towns in the region and boasts a bustling new marina and vast, soft sandy beaches. You can also take day trips over to the nearby Greek islands of Kos and Rhodes which lie just off the Turkish coastline here.

Temperatures often hit 30° during the summer months when holidays in the Bodrum region see uninterrupted sunshine from May through to late September.

Accommodation is varied with something for all budgets, however some Turkish rooms can be quite basic so it’s worth researching your choice on the internet so you know what to expect. For example our three star accommodations will only be a two star over there meaning your cheap holidays to the Bodrum region will not be a bargain if your resort or accommodation is poor.

Snorkelling and scuba diving are favourite pastimes while on holidays in the Bodrum region as there is plenty of marine life and fascinating shipwrecks just off the coast here. Nearby water parks will keep the whole family entertained all day and if its gifts and souvenirs you are after then many an hour can be spent haggling for the best prices at the local markets.

History lovers will enjoy holidays in Turkey as there is so much to see here, the ancient city of Ephesus is a bus trip away but definitely worth the effort, you can also stop off at Cleopatra’s pool and the waterfalls at Pamukkale. The ruined city of Hierapolis with its beautifully preserved burial ground is also worth visiting while you are here.

Turkey still has its own currency, the Turkish lira, meaning holidays here are great value for money still as they are still avoiding the euro. Make the most of cheap holidays in the Bodrum region and visit this summer, before prices start to go up.

Golf tourism is already experiencing strong growth in Turkey and revenues should hit €500 million by 2010. Turkey intends to take golf giant Spain on head-to-head with the Aegean province of Mugla as its secret weapon.

There were 359 federated golf courses in Spain at last count, around 60 of these concentrated along the Costa del Sol generating Málaga province alone €900 million in 2006.

Adam Godwin marketing director of a real estate agent in Bodrum said: ‘With the number of golf courses rising exponentially the Bodrum area will become on a par with the Costa del Sol as a serious destination for UK and Ireland-based golfers who will pay considerably less than the average £65 for a round on the Costas’.

He describes the Bodrum area as a ‘classic lifestyle investor’s destination’ where personal use is the key driver but with the added bonus of rentals and increased property values. ‘Those who get in early in prime projects will enjoy significant price rises over the next five to ten years. We’re already experiencing capital appreciation around 15% per annum largely thanks to recent infrastructural improvements,’ he added.

Until now Turkey’s golf has been concentrated in two regions – Istanbul, which has three and Mediterranean Belek with around a dozen. Experts say the southwestern province of Mugla is one to watch. It is a holiday hotspot taking around 70% of all tourist arrivals, has over 1,100km of coastline punctuated with chic marinas but until now very little golf.

At present 27 holes winding through pine forests and olive groves are under construction close to the village of Munculur and a further 36 holes are nearing completion at Vita Park near Bodrum but thanks to a joint venture between two large groups of companies, no less than 18 courses are now their way to help make turkey a leading golf destination.

“There are many good reasons to buy in Turkey, and an estimated 17,000 Brits already have,” reporter Jon Robins noted. “But the country’s rather unimaginative approach to new builds suggests that an appreciation of contemporary architecture isn’t likely to be one of them.”

Yet now, with new constructions such as Aegean Hills things are changing. “The cluttered hillside around the former fishing village of Yalikavak, half an hour from Bodrum airport, certainly has a certain charm to it,” Robins commented. The properties have “a modernist twist accentuating the sharp minimalism of the design.”

The story also noted, “Some prospective buyers might regard Turkey as a step too far, with its frustrated desire to join the EU and the threat of terrorism (10 British tourists were injured in the Marmaris resort in 2006).” But, it added: “People buy in Morocco and that’s an Islamic country. The roots of secularism are well ingrained in Turkish life.”

The Observer story also underlined the potential of Turkey’s real estate market:

“Turkey’s overseas property market is in its infancy and mortgages have only been available to prospective foreign buyers over the past two years. None the less, the country is being tipped as having great investment potential and some believe that it will follow a similar trajectory to the Spanish market in the Seventies.”

The real estate swindle in Bodrum and Didim reached an amount close to 500 million pounds during the last two years. “The illegal real estate agents and such swindles not only result in the loss of confidence in the Turkish real estate sector but also a big amount of tax smuggling,” Fikriye Kocagöz, Turkish trained real estate agents association member and Gümbet TURYAP representative said.

Speaking at a meeting of Aegean realtors, Kocagöz stated that while the number of the registered real estate agents was 1,300 in Didim and Bodrum, the number of real estate agents operating illegally was about 6,000. “At least 400 of the illegal real estate agents are foreigners. Police, officials, restaurant owners, waiter, hairdressers, political party representatives… Everyone is in the real estate business except for the old, the ill and the children. We hear that a Kenyan, settled in Bodrum, works from a home office and sell villas and plots of land. The lack of supervision is the main problem.”

Kocagöz added, it was stated that the number of foreigners that applied to the police or prosecutor’s office and reported to have been cheated exceeded 60. Most people cheated are designated to be from Ireland and the United Kingdom mainly, reported the Do?an news agency.

Loss of confidence in Turkish real estate sector:

Ranking third in the sales of second residence and summer homes in Europe after Spain and Greece, Turkey has lost a lot of prestige and dropped to seventh. In Didim and Bodrum, it was reported that about 13,000 villas and lots were sold to foreigners in the last year yet only 3,500 of them were officially registered and it was revealed that the deeds of the rest, supposed to be handed over with contracts, were not still delivered.

Contract cancellations begin:

Thirty-year-old Kubilay Co?kun Atmaca, a taxi driver two years ago but now in the construction business, and his 40-year-old wife Hande Bakkal caused a big scandal in Turkey’s booming coastal real estate market. The couple were selling villas with fake deeds, and managed to flee. The loss of confidence in the sector resulted in the annulment of many contracts with many construction companies.

Nokta Building Construction and Contract Limited Company Administrative Committee Chairman Cengiz Altinbascan stated that in the last nine months they sold 350 villas they had built in Bodrum to the Irish, English and the Danes; yet 12 foreigners have canceled their contracts in the last 3 days. “We immediately gave back the money they invested. It is a shameful period for Turkish contractors. Everyone is trying to enter the sector. The coming days will be hard times for many land owners and real investors due to the illegal sales using fake deeds. Increasing the supervision is vitally important. We never perform a sale without a certified interpreter, deed and notarized contract,” added Alt?nba?can.

Foreigners being urged to be alert:

To avoid being cheated, TURYAP Göltürkbükü Representative Okan Uçar recommended that foreigners not sign any contracts without the presence of a lawyer and a certified interpreter. “In a trade that costs 80-100 thousand pounds, a good and serious investigation will cost a maximum of 600 pounds. Foreigners who want to purchase estate should obtain information from the deed office and the municipality about the land or the house they want to purchase. They should also research the people who will sign the contract. In the next 3-5 years, the negative effects of the illegal contractors and the real estate agents will become more obvious. Organizations involved in the sector and the government should take serious action. These illegal contractors and real estate agents must be severely punished,” said Uçar.

With Turkey expected to join the European Union within the next decade, property experts say those who get in early stand to see a substantial return on their investment. The combination of rapidly rising house prices and Turkish property market reforms has made the country an increasingly popular destination for international investors. Five years ago the government passed legislation making it possible for non-Turkish citizens to buy property. Since then, foreigners have spent more than $7.2 billion on an estimated 30,000 homes, according to the Turkish government. Over the last year alone, property sales to foreigners soared by 59% to $2.9 billion.

Moreover, recent changes in legislation have also created the country’s first ever mortgage market, says the web site. As a result, it is now possible to get a mortgage at interest rates that are roughly 50% less than the traditional home loans buyers used in the past. "Now that the government has made it easier for foreigners to buy, demand is soaring," says Ahmet Rauf Saatci, chief executive of real estate agency Century 21 in Istanbul.

Bright Spots

The sunny Mediterranean climate is only a small part of Turkey’s attraction. For starters, property prices are on average 30% to 50% less than those found in more well-trodden hotspots such as the Spanish, French, and Italian coasts. Property experts compare the country to the Spanish property market in the 1970s. London-based international real estate agency Knight Frank predicts property prices will increase by 12.5% in 2007, the web site says.

Not only is it cheaper to buy, it is also much cheaper to live. Economists reckon that the cost of living is between 40% and 60% less than in continental Europe. And according to the Organization for Economic Cooperation and Development, Turkey is the fourth least expensive place to live in a recent survey of 30 member countries.

The vast majority of international buyers are focusing mainly on coastal resort towns. Towns such as Bodrum, Marmaris, and Fethiye, all long-popular with vacationing Turks and Europeans alike, have experienced a development boom. Over the last five years, numerous modern apartment complexes and gated private communities have sprung up to cater to demand.

Good Returns

The web site further says that the Turkish property developer Tuna Homes and Buildings almost exclusively markets its portfolio of modern villas and apartments to Europeans. Since ownership laws for foreigners have been liberalized, interest in investment properties in the Bodrum Peninsula has accelerated, according to Tuna sales manager Necati Azazi. Last year, 90% of Tuna’s 500-apartment development in Bodrum, called Peninsula, was sold to Europeans. Over the last year, prices in coastal areas have appreciated between 30% and 50%. New, modern, gated developments with pools and other amenities such as tennis courts are in high demand.

Sitting on the Aegean coast, the town’s history stretches back 2,000 years. It is home to one of the ‘Seven Wonders of the World’ – the tomb of Mausolus – and a picturesque crusader castle dominates a harbour filled with yachts and traditional wooden sailing boats, known as gulets.

“A mecca for European holidaymakers, Bodrum also attracts the cream of Turkish society with its great dining, nightlife and watersports,” explains Dominic Whiting, editor of the Buying in Turkey property guide. “Bodrum is increasingly popular with year-round British residents, many of whom work in the rapidly developing tourist and real estate industries.”

Excellent choice of property

For culture-vultures there is an archaeological museum in the castle, along with several galleries and a summer program of concerts and performances. The area is an important yachting centre; while the Greek island of Kos is just a short ferry ride away and a new terminal for cruise-liners was opened last year.

There are several excellent private hospitals in the town, which is a plus for both permanent residents and visitors, and there are supermarkets, furniture outlets and DIY stores, so you can find everything you need for your new property locally. The resort’s international airport, which is 20 minutes from the town centre, is well served by charter flights in season, making access from the UK easy.

“Beyond the town itself, the Bodrum peninsular is ringed by a series of smaller, quite distinct resorts,” says Dominic Whiting. “There are good beaches and new marinas at Turgutreis and Yalikavak, with two new golf courses in the area too.”

Renowned for its bougainvillea-splashed sugar-cube houses, Bodrum is very popular with both foreign and Turkish buyers and there is an excellent choice of property.

“Local planning controls limit the height of building but there has been a lot of development – some would say over-development- in recent years,” says Dominic Whiting. “This makes choosing a decent quality property in a good location essential if you intend to rent or resell. Avoid the cheaper re-sale properties which are often very poor quality and buy from a well-established company with a proven track record of sales to foreigners.”

Sea views

Apartments on the Bodrum peninsular typically range from £60,000-£90,000 / €42,000-€63,000 for two-bedrooms. The village of Gumusluk with its small beach, harbourside fish restaurants and pretty surroundings is very popular with buyers.

Prices start from £70,000 / €49,000 for a good quality new-build flat with two-bedrooms. For example, local developer Harmony Homes has two-bedroom apartments with sea views ready to move into for £78,000 / €54,500 and £83,000 / €58,000.

Neighbouring Yalikavak has a wide selection of property from apartments and villas on complexes to luxury mansions. The sea-front promenade and town centre have been sensitively redeveloped and the local marina adds to the resort’s appeal. Many properties have sea views and local prices have risen sharply on the back of strong demand.

According to Dominic Whiting, the author of the Buying in Turkey property guide, Bodrum has become a "Mecca" for holidaymakers in Europe thanks to its warm Mediterranean climate and excellent mix of watersports, nightlife and delicious cuisine.

Improvements in infrastructure, ease of travel to and from the UK and the building of new hospitals and supermarkets means it is also popular among British expatriates

As a result there are plenty of opportunities in the real estate sector for buyers looking for both investment properties and buy to let, Mr Whiting told Estate Angels.

"Beyond the town itself, the Bodrum peninsular is ringed by a series of smaller, quite distinct resorts. There are good beaches and new marinas at Turgutreis and Yalikavak, with two new golf courses in the area too," he said.

Meanwhile the Turkish Daily News reports that the country’s government has announced the formation of a new Tourism Infrastructure Services Union in Bodrum to improve the infrastructure on the peninsula, which is likely to further boost opportunities for property investors.

According to Dogan News Agency, a new camera system was developed in Bodrum, which hosts approximately 5 million tourists a year, to cope with robbers, street-vendors and snatchers. After a three-year study, the security system will be put into operation before this year’s tourism season begins.

It was stated that with the Bodrum Security System, placed in 135 areas and developed with the collaborations of the Mugla Governorship, Bodrum Municipality, Bodrum Peninsula Promotion Association (BOYTAV), Bodrum Chamber of Commerce and Bodrum Market Tradesmen Association, the district will be observed 24 hours a day. The project aims to cope with illegal tourist guides, street-vendors, snatchers and noise pollution while assuring a peaceful holiday and safety.

“Due to the rising complaints about robbers, street-vendors and snatchers in the recent years, we had to take such precautions,” said BOYTAV President Mehmet Kocadon.