Turkey has enjoyed a bumper year for tourism, impacting favourably on property prices in tourist hotspots.
Foreign property buyers surged in numbers during the first half of 2014, according to real estate agency Spot Blue International Property.
Istanbul has certainly been a winner this year
Data from the Turkish Statistical Institute showed that property sales to foreigners in Turkey rose a staggering 60% year-on-year during the first six months of 2014, totalling 8,507 transactions.
For the same period, Istanbul alone recorded an unprecedented 150% increase in foreign buyers, ahead of tourist province Antalya and its popular resorts of Alanya, Belek and Kalkan.
The average price of a Turkish home rose by 12.05% in June 2014 compared to June last year, one of the strongest months for the Turkish property market with 600 foreign purchases in Istanbul, followed by 596 in Antalya and 108 in Aydin.
The Turkish Ministry of Economy confirmed that foreign buyers bought just over €1bn worth of Turkish real estate in the first four months of the year, €720m more than in the same period in 2013.
"Istanbul has certainly been a winner for us this year. Interest has been strong from Middle Eastern buyers in particular, with most buying one or more buy to lets in the mushrooming suburbs of the city such as Beylikduzu and Bahcesehir," said Julian Walker, director at Spot Blue.
Meanwhile in the tourism sector, visitor numbers rose 3.24% year-on-year in the first three months of 2014, reaching 4.35 million and increasing investor confidence in the buy-to-let market.
In terms of revenue, tourism generated a record high €7.1bn in Q2 2014, a 7.9% increase over the same period last year.
During 2013 Turkey welcomed more than 35 million foreign visitors, becoming the sixth most popular travel destination in the world. When the 2014 summer figures are factored in, it is expected that the country will have been visited by more than 43 million tourists, generating revenue of €28bn.
"Increased tourists not only stimulate the property market in terms of sales but they also are encouraging for foreign owners who let their property to holidaymakers," explained Walker.
As airlines are set to increase budget flights to Turkey over the next few years, it is expected that the country’s real estate sector will see sustainable growth over the long term. The outlook for those invested or considering investment in Turkey’s property market is exceptionally good, with capital values and rental yields set to continue their meteoric rise.