Our first overseas deal of the year and our first since taking over at Property Secrets had to be a solid opportunity that we really believe in. After months of negotiating and monitoring the progress of markets across Europe, we decided on a country and city very much on the up.

Turkey is among the top 10 investment locations in the world today, with the 15th largest economy in the world and the 6th largest European economy it is expected to become a full member of the EU within the next 10 years. With an estimated 30 million tourists in 2010 it is the third highest portal search on the internet for property. With capital growth 15% to 25% per annum and rental yields 7.5% to 10% per annum, investing in the country looks a good bet for a positive return whether it be a short or long term purchase.

Istanbul itself is one of the largest ities in the world and the number one city in Europe for capital growth with forecasts in excess of 15-20% per annum.With a current population of 15 million and increasing by approximately 250,000 a year there is an anticipated 500,000 new buyers annually for both residential and commercial property in the city which has over 60% of its population under the age of 30. The city is capital of culture for 2010 attracting over 8 million tourists to the Bosphorus Strait.

Below is a little research that we have done since monitoring the countries progress over the last few months:

Date: 27/11/2009

Europe's largest mall opened in Istanbul

Europe's largest shopping mall, has opened its doors. Developed by Multi Turkmall, Forum Istanbul is located in Bayrampasa, near the center of Istanbul's European side. The shopping center stands on 495,000 square meters of area, with 175,000 square meters of leased retail area, employing around 6,000 people. The shopping center expects to attract 25 million visitors per year.

Date: 23/11/2009

Invest in Turkey (Dunya)

FIRST 6 WEEKS OPENING FIGURES MORE THAN 5 MILLION VISITORS

STOP PRESS

Date: 12/11/2009

Turkish Property Investment New Boost

Overseas property buyers considering investing in Turkish real estate will be heartened by the news that the European Union economic report has predicted that Turkey will become the fastest growing country in Europe in 2010 with a 2.8 percent growth rate. Turkey also came out very well in recent Tourism statistics issued by the World Tourism Organization showing Turkish increased against a worldwide decline.

European Commission's economic forecast report for fall has estimated that Turkey would shrink 5.8 percent this year and the growth rate would climb up to 3.6 percent in 2011.

The report said the inflation would be 5.6 percent in 2009, and it would be 5.8 percent and 5.3 percent for 2010 and 2011 respectively.

The commission report said unemployment would rise to 13.9 percent in 2010 and fall to 13.5 percent in 2011 as trade deficit would be 2.1 percent in 2010 and 2.8 percent in 2011.

Tourism grew 1.47 percent in Turkey as shrinking 7 percent in the world in the January-July period of 2009, World Tourism Organization (WTO) said.

Turkish Ministry of Culture & Tourism said in a statement on Wednesday that tourism shrunk 7 percent in the world and 8.4 percent in Europe in the January-July period of the year because of impacts of the global financial crisis.

"Tourism grew 1.47 percent in Turkey in the same period (7 months) with number of tourists rising up to 21.8 million. The number of tourists increased only in Turkey ,among the ten most popular tourism destinations in the world," the ministry added.

Date: 03/12/2009

Turkey - Major operators pick top ten choice for 2010

Turkey, Egypt and Mexico top the list of the top ten hottest holiday destinations in 2010 predicted by Thomson and First Choice.

The sister operators under the TUI Travel umbrella also tip Tunisia, Greece, Majorca, Cuba, Croatia & Montenegro, Morocco and Costa Rica.

The majority of the destinations fall outside of the eurozone, reflecting a shift towards better value for money due to the weakness of the pound against the euro.

Thomson and First Choice have "significantly" increased capacity to Turkey for next year as the country offers good value for money and has many hotels providing al-inclusive facilities.

First Choice has more 'Splash' hotels in Turkey than in any other destination. The five resorts have on-site water parks.

Date: 11/11/2009

New EU report sees fastest growth for Turkey in Europe

According to a European Union economic report, Turkey will become the fastest growing country in Europe in 2010 with a 2.8 percent growth rate. The European Commission's economic forecast report for fall has estimated that, although Turkey's economy will contract this year as a result of the global financial crisis, the growth rate will climb up to 3.6 percent in 2011. The report said that inflation will be 5.6 percent in 2009, and 5.8 percent and 5.3 percent for 2010 and 2011 respectively.

Date: 13/11/2009

Banks boom in Turkey without government aid

In Turkey, bank profits have risen more than 40 percent this year, though at first glance that might not seem exceptional. After all, profits have surged at US banks too, spurring a stock market rally that has wiped clean most of the losses from last year's economic meltdown. But there's a difference: Turkey's banks posted those profit gains without any government assistance.

Profits for the entire Turkish banking industry totalled USD 10.5 billion for the first nine months of the year, according to government data. At a time when the recession has hammered many European banks, Turkey's financial institutions have weathered the crisis remarkably well.

The Turkish government restructured the financial system, boosting the banks' capital requirements and raising the mandated ratio of capital to risky assets to 12 percent from 8 percent.

Another difference: Turkish banks had almost no exposure to subprime loans or derivatives. The result is that Turkish banks now have some of the world's strongest capital structures. Those capital reserves, and the absence of risky lending practices, helped shield them when the recession hit. For example, Garanti Bankasi, one of the country's largest lenders partially owned by General Electric, maintains a capital ratio of almost 18 percent, according to the bank's financial filings, far higher than most US banks.

(Houston Chronicle)

Date: 8/1/2010

Moody's upgrades Turkey following eurobond issue

by Emma Saunders

From Reuters:- Moody's Investors Service has just upgraded Turkey's government bond rating to Ba2 from Ba3, reflecting the rating agency's growing confidence in the government's financial shock-absorption capacity. The outlook was changed to stable from positive. Fitch moved late last year to put Turkey on BB+.

Timothy Ash, an analyst at Royal Bank of Scotland, said: "It's a bit disappointing that Moody's only moved one notch, as this still leaves Moody's rating of Turkey one notch behind Egypt, which I have long failed to understand... answers on a postcard as to why Turkey should be rated behind Egypt. Obviously Moody's was 'inspired' by the hugely successful eurobond issue earlier this week ($2bn placed, and $7bn in orders). Clearly, investors are voting with their feet, irrespective of the views of the ratings agencies."

15/1/2010

Istanbul Office Rent Surge

The world's most expensive office markets got a little cheaper this year, but Istanbul, Turkey's most populous city, was among the few cities in which office rent expenses surged.

More than 130 cities worldwide experienced declines in rent expenses in the year ending Sept. 30, the CB Richard Ellis Group said in a report released Tuesday.

Almost 50 cities reported declines of more than 10 percent: Rental costs fell about 30 percent in midtown Manhattan, 53 percent in Singapore and 41 percent in central Hong Kong. Overall, rents fell an average 7.7 percent across 179 markets worldwide.

Istanbul ranked among the top five cities in which rents increased most, with 9 percent. Office rents in Aberdeen, Scotland rose 12.3 percent, while rents in Rio de Janeiro increased 12.1 percent.

The average office rent in Istanbul stood at an annual price of $77.44 per square foot, or 47.46 euros per square meters per month. With this price, the city ranked 19th in the list of the most expensive office markets as of Sept. 30.

"The places that went up the fastest and highest also came down the fastest and at greater depth," Bloomberg quoted Raymond Torto, Boston-based chief economist for CB Richard Ellis, as saying. "You party Saturday night and you pay for it on Sunday morning. That's true across the globe."
The global recession and credit crisis are pushing down office rents as companies pare down jobs. About 1.93 million job cuts have been announced worldwide this year, data compiled by Bloomberg shows. In the U.S., the unemployment rate jumped to 10.2 percent in October, the highest level since 1983.

Singapore and Hong Kong are struggling to pull themselves up from recession, according to CB Richard Ellis. The pace of rent declines in Singapore eased in the third quarter, suggesting "an improvement in business confidence," the report said.

In Hong Kong, rents for top-quality space ended a yearlong decline in the third quarter for similar reasons, according to the survey.

London's West End district retained its position as the world's most expensive office location, CB Richard Ellis said. Offices there cost $184.85 a square foot, down 26 percent from a year ago in U.S. dollars.

With the exception of CB Richard Ellis's May survey, when London was passed by inner central Tokyo, the broker estimates that the West End has held the title of the world's most expensive office site since 2001.

CB Richard Ellis defines occupancy costs as rental charges including taxes and service fees.
In another development, the Turkish Finance Ministry aims to have significant income from real estate sales next year, according to business daily Referans.

The newspaper reported on Wednesday that the ministry targets 500 million Turkish Liras in revenues in 2010. According to the ministry's performance program, the 2009 target stood at 250 million liras.
The Turkish Treasury currently owns more than 3.1 million units of property. More than 113,000 of these are buildings, 381,000 are plots, 678,000 are lands and more than 1.18 million are farm fields.

4/12/2009

Turkish Stocks May Soar to Record in 2010: Technical Analysis

By Seda Sezer

(Bloomberg) -- Turkey's stock index, lifted by a Fitch Ratings sovereign-debt upgrade, may test its record after support at 45,000 provided a "powerful springboard" for a gain of as much as 27 percent by end-2010, said Auerbach Grayson & Co.

The ISE National 100 Index jumped 3.7 percent yesterday after Fitch lifted Turkey to BB+, the highest speculative-grade rating, citing the economy's "resilience" during the global financial crisis.
The gauge is "in a very strong technical position which has it 'poised to soar' from current levels," Richard Ross, a global technical strategist at Auerbach in New York, wrote in a report dated Dec. 3.
Turkey's stock index will probably test its record of 58,864, set on Oct. 15, 2007, within the next six to nine months, after which it may "push out" to a new high of about 63,000 by end of 2010, the note said.

"The ISE's ability to rally off of critical support at the 'neckline' around 45,000 has generated a 'failed' head-and- shoulders pattern, which should provide a bullish catalyst and powerful springboard to higher prices," Ross wrote.

A rising head-and-shoulders comprises three consecutive peaks on a chart, and a neckline is the base of the pattern. This formation signals to analysts who predict asset values by studying trading patterns and prices that a decline is likely. It need not necessarily occur.

The MSCI Emerging Markets Index of developing-nation stocks will climb 34 percent to 1,300 by the end of 2010, approaching an all-time high, as low interest rates and a global economic recovery spur earnings growth, according to a Dec. 2 JPMorgan Chase & Co. research note. The index "could retest" its closing record of 1,338.49 reached in October 2007, it said.

Turkey's ISE gained 0.9 percent to 50,101.98 at the close of trading. The measure added 10 percent this week, the biggest gain since October 2008.

For more information on our brand new deal in Turkey, view our audio slide on Youtube visit our facebook page or follow it's progress on twitter.

Daniel Peacock.