One of the major discussions in last month's local papers of Marmaris was the high drop in the real estate market in the past three years. The dimensions and reasons of the drop were the main topics. The reports showed that there is pessimism toward the future and the real estate agents were desperate. However, some agents have opposed what the papers put in front of the readers and expressed their optimist views for the market.

Yusuf Ziya Akkuş, head of the Marmaris Real Estate Counselors Association, says unstable laws and regulations are the main reason leading foreigners to sell their properties and leave Turkey. Moreover he thinks illegal “real estate agents” such as waiters, receptionists, taxi drivers and even medical doctors pose serious problems for the market.

The words of Richard Bielawski, a British homeowner in İçmeler area, proves Mr. Akkuş's claims; “What we suffer here is a matter of system. It is a completely different system than the British system and difficult to understand for us. Another thing we don't understand is; everybody is doing every job in Turkey. Everybody is a real estate agent, builder or carpenter. If they are not, certainly their brothers are. But, we still believe it is good investment here.”

For the most experienced sector representatives, the problems of property sellers and owners are not simple to sum up with a few words. They believe there has been a lot of controversy recently over the situation of the real estate market in the Aegean and Mediterranean coastal resorts. 

Sharon Barret, partner of a leading real estate agency in Marmaris, speaks with 14 years of professional experience; “Overall the general word is that the past behavior of estate agents putting money on top of properties, waiters and barman selling properties (illegally and not the correct property) and generally that foreign nationals are being ripped off and conned in every way possible has led to foreign buyers retracting from Turkey altogether causing a crash in the market.  Now, as we all are fully aware that there is some truth in these statements however it is very narrow-minded to believe that this is the sole cause of the decline in the real estate market and even that it has taken such a dive that it will not return to a more stable position.”

After a booming period on the market between 2003 and 2005, doomsday came!  The law was being reassessed and during this period foreigners were forbidden to buy in these areas again, only this time the publicity that came with it projected the news that foreign nationals were banned from buying everywhere in Turkey!  So, the downward spiral began.  

First of all, minds got confused due to the several laws, regulations and cancellations. Then, the sales and purchases stopped. And finally reducing property prices and selling by foreign homeowners began. Today's situation: Quick sales and imbalance of the newly built properties compared to the number of buyers have reduced the prices more.

The critical point here is the manner of foreign land or homeowners; are they selling their properties and leaving Turkey? It is critical because it may cause panic in the market and change the ongoing trend. The truth is some Europeans have already left Turkey after selling their properties. 

Barret points out that the sales shouldn't be taken unexpected and she clarifies the reasons; “A lot of them bought for investment purpose and now want the return back on their investment. Some are struggling financially in Europe, some more elderly clients are retuning to the U.K. for health reasons. This is not to say that others have not had bad experiences and feel they've lost the battle and have chosen to return home however I must stress this is not the majority. Unfortunately when it comes to Turkey as a whole, nationally or internationally we only hear the bad stories and never the good ones.

World economy and mortgage crisis

It wouldn't be fair to think this is just Turkey suffering, the world economy is going through a very difficult period.  The mortgage lenders are going under due to mortgages not being paid, properties are being repossessed, and the lenders are thinking twice before giving out mortgages and in the U.K. especially the majority of people are in serious debt. The elderly can't afford to live on their basic pensions there anymore due to the prices of gas, electricity and not forgetting the council tax. The real estate market in the U.K. is expected to crash in the very near future. This automatically affects the potential of foreign buyers.

Moreover, Turkey has had a lot to compete with against other countries such as Bulgaria, Croatia, Cape Verde and similar countries that are up and coming with cheaper property prices and already in the EU which is certainly a bonus for the retired and elderly. On the other hand, despite all these background, real estate in the South Aegean coastal area has hope for this year, as Sharon underlines the recent increase in the pound and euro to the lira; “It is now a more positive market for foreign buyers. And, Turkey is still getting good publicity in Europe for real estate and general investment in a selection of areas. TV, magazines, newspapers and independent research companies are still promoting Turkey as a good place to invest in and with a promising future ahead, so much so, that they are stating that anyone who doesn't take an opportunity to invest here is simply mad!” 

Source: TDN