|
In the mid 1990s, the investment of
huge amounts of both public and
private money kick-started the
Spanish property boom which has
been running for the last ten years or so.
A combination of government determination
to create a vibrant, modern
property market and widespread confidence
in the future from businesses of
all types has proved irresistible. On the
back of this sustained investment, individual
investors who bought Spanish
property in the right locations have seen
their personal investment double, triple
or even quadruple in value. National
growth rates accelerated from 6.8 per
cent in 1997 to over 17 per cent in
2003, however the local rates in prime
areas such as Murcia and Alicante were
as high as 27 per cent at the peak
(source: Ministerio de Vivienda, Spain).
Now, in the first decade of the new
millennium we can see the same pattern
starting to repeat in Turkey. Both
Dalaman and Bodrum airports are
expecting significant investment and
improvement over the next two to three
years as demand increases, especially
with the prospect of more winter flights
and low cost carriers. A massive road
improvement plan is well underway
along the coastal routes from the
airports and into the resorts around
Bodrum and Marmaris. Just one tunnel
currently under construction will reduce
the Dalaman to Fethiye journey from 45
minutes to 30 and another around
Marmaris will have similar benefits. All
the major sections of road linking
Bodrum, Marmaris, Dalaman and
Fethiye are either in the process of being
upgraded to dual carriageway or will be
soon.
Many local roads are also being
upgraded, improving access to dozens of
relatively undiscovered coastal resorts. A
repeat of the rapid growth around the
Costa Cálida in Spain, generated by the
expansion of Murcia airport and the new
A37 motorway from Alicante, is already
happening.
In the private sector, close to the main
road from Bodrum airport to the town
itself, one golf course project has just
started construction and another will
start soon. The much talked about
Marmaris golf course is now much closer
to starting work, as is one near Fethiye.
In total, 11 courses are planned for the
area and with the water supply good
(Turkey actually exports fresh water) the
long-term prospects are strong. This
coast is already famous for its marinas,
and a number of new projects are due to
be launched soon, including work
around the popular existing marina at
Göcek, between Dalaman and Fethiye.
With 174 Blue Flag beaches already and
dozens of improvement projects
underway, the similarities between
Turkey now and the Costa del Sol or
Costa Blanca of 10 or 15 years ago are
very close. Given the growth in prices in
those areas since then, the current
availability of £75,000 three -bed villas
walking distance to the beach in Turkey
cannot last for long. Growth in 2005 will
probably be just under 20 per cent, and
for 2006 something over 20 per cent
seems likely. However, a word of caution:
in such a dynamically emerging market
there are agents and developers only too
ready to exploit the fact that not too
many in the industry are too familiar
with how things work in the country.
That is why it is so important to contact
a member of FOPDAC for information
and advice.
The Federation of Overseas Property
Developers, Agents and Consultants
(FOPDAC) was established in 1973 to
unite those agents, developers and
specialist consultants active in the
international property markets whose
common aim is to conduct their
activities in a manner which seeks to
protect the interests of those who have
decided to purchase, or sell, a property
overseas. Even in the 1960s’s boom of
foreign investment, the need to protect
against rogue traders and separate the
good from the bad was realised.
Membership of the Federation is
restricted to companies or individuals
whose probity is beyond reasonable
question.The individual principals must
have the experience and professional
expertise to meet the strict criteria set in
the Federation’s Code of Ethics and the
Committee of the Federation and its
members provide a valuable reservoir of
many cumulative years of experience in
international property.
The growth of the Turkish market is
well illustrated by the amount of
enquiries FOPDAC receives regarding
membership. In the last year FOPDAC
has received over 60 requests for
information and distributed over 30
membership packs. From this figure
FOPDAC currently have seventeen
members selling in Turkey, with a further
five about to be accepted. Frequently
applications are declined due often to
the fact that enquiries come from
companies who have not yet been
trading a year. This rule applies to all
applications no matter which country is
the focus of the agents business.
However, in an emerging market where
new agents are quick to be established
but have little experience or industry
knowledge, such a rule as part of the
vetting procedure is imperative for the
safety of buyers.
For more information visit: www.fopdac.com or call: 08703501223
Adrian Medd is Chairman of the
Federation of Overseas Property
Developers, Agents and Consultants
(FOPDAC) and its Business Practices
Officer. Having been in the overseas
property industry for over thirty years,
and a director of two highly successful
villa companies, his expert industry
knowledge and enthusiasm makes him a
strong chairman (now in his second term)
who is keen to carry FOPDAC forward.
Mr Medd is frequently involved with
the media seeking information and
opinion about the industry. He strongly
believes that the ethical way is the best
way to achieve what should be
everyone’s objective: a dynamic and
vibrant but sustainable industry.
Adrian Medd can be contacted on 01223
514241, e-mail: adrian@europeanvs.com
|
