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Turkey looks ready for one of the biggest property booms in recent history. Many analysts are picking Turkey as likely to be one of the top five performing European markets in 2007 and it is currently on track to achieve capital growth in excess of 12%.

Recent fiscal and political changes have boosted international confidence in the Turkish property market and foreign investors are rushing to take advantage of the relatively low prices which are comparable to Spain twenty-five years ago.

It has long been a dream of the Turks to be accepted into the European Union, and the Turkish government is strongly committed to raising Turkey’s international profile.

Changes in 2006 bought about the strengthening of foreign buyer’s legal rights and the continued policy of fiscal, judicial and political reforms means Turkey is becoming one of the most attractive, competitive and safe nations to buy property in. Their goal is to bring local laws up to “EU standards” and strict controls are now in place governing the formation and operation of estate agencies and brokers.

New laws governing mortgages will come into effect in January 2008, allowing banks to offer long-term financing for the first time. In the past, Turkish banks had only been allowed to offer short term loans, meaning that the Turkish property market was largely cash-only. These changes are likely to fuel a country-wide property boom.

For a foreigner to buy property in Turkey, there must be a reciprocal arrangement in place with the potential purchaser’s home country. The U.K is one of those countries, and the British are leading the property charge. Britons are now the second largest group of foreign buyers after the Germans.

Two strong reasons for buying are the lack of property gains tax on properties owned for a period of four years or more, and the relatively low inheritance tax. (Paid on a sliding scale from 1 to 10%)

Turkey boasts three hundred days of sunshine a year, with hundreds of miles of beautiful coastline and beaches. The Turkish Riviera rivals the Cote D’Azur and the Mediterranean waters share the same azure colour. To the north, ski resorts flourish and there is a depth and breadth of cultural diversity.

Both state and local governments are working hard to attract the tourist’s dollar/pound/euro, with the introduction of “Culture and Tourism Conservation and Development Zones,” around the country. In 2006 over 20 million visitors made Turkey a top-10 destination and revenue of US$ 17 billion in 2005 also put Turkey into the top-10 revenue earners.

Demand for rental properties is on the increase, and Turkey is fast becoming THE holiday destination for many Americans and Europeans. Healthy rental incomes combined with double digit capital growth. Too good to be missed?