A wonderful climate, cheap prices and a country of culture, but challenges too – Rosalind Renshaw talks to a British estate agent based in Turkey

Clair Tatlici first went out to Turkey as a holiday rep after graduating from university in London. Like so many other Britons, she fell in love with the country. That was 13 years ago, and today Clair, who married a Turk, lives in Turkey, speaks fluent Turkish and runs the business she founded in 2002, Turkish Homes.

She set up the agency when it became legal for foreigners to buy property in Turkey, believing that she had spotted an opportunity in the market.

Her hunch proved correct: Turkish Homes began in the Mediterranean resort of Altinkum, where she was the first estate agent selling to foreigners. Today, there are over 600 estate agents in the town doing exactly the same thing.

Turkish Homes itself has taken off to the extent that it now has other offices in Bodrum and Gumbet and an affiliate agency in Kusadasi.

Around 95% of the business, which employs 15 staff, is to British buyers, and in 2004 a sister company was formed in this country to market the properties.

Family affair

This became so busy that last year Clair’s sister Katrina Walker left her job in public relations to become a full-time co-director of the business. Her office in Wimbledon now has one other full-time employee. The UK business is a family affair and is also overseen by co-directors lawyer Diane Brown – Clair and Katrina’s mother – and Simon Walker, their brother, who is now looking to expand the company into Scandinavia, where property investors also seem excited about buying in Turkey.

There seems little doubt that the market has a way to go, not least because property prices are so much cheaper than in, say, Spain or Cyprus: £20,000 will get you a two-bedroom resale apartment near the beach; £25,000 will buy a two-bedroom off-plan property; and £150,000 is enough for a four-bedroom villa.

Prices are such that some UK clients of Turkish Villas have been first-time buyers unable to get on the housing ladder in the UK. “We’ve had quite a few of those,” says Katrina. “We also have people buying retirement homes, because the cost of living is also so much cheaper; people buying second homes; and I am currently negotiating with a group of investors interested in buying a complete block of apartments off-plan.”

One first-time buyer/investor is Jackie Keenan, 32, from Glasgow, who could not afford to invest in bricks and mortar in the UK. After holidaying in Turkey for 12 years, she decided to buy an apartment in Turkey for £20,000. That was in 2004, and today, the property is worth around £30,000. For her money, Jackie has two bedrooms, air-conditioning, a shower, and garden – all just minutes from the beach. The property is looked after by Turkish Homes in her absence.

The weather is superb along the Aegean and Mediterranean coasts, where the foreign property market is concentrated: winters are mild and summers are hot and sunny.

Highly attractive

Spectacular landscapes, fascinating historical sites and, with farming and fishing still the predominant industries, fantastic fresh home produce and a slower way of life, all make Turkey attractive.

Eating out is cheap providing you stay out of the tourist haunts and go to the places where Turkish people themselves would eat: a meal in a local taverna would be £3 a head and in a restaurant £5.

However, it must be emphasised that for foreign property investors, the country is an emerging market. That, inevitably, means risks not certainty.

Turkey is not in the EU, and while most people expect accession within a few years, this is by no means a certainty, amid dark rumblings over the country’s human rights record.

Nor is it possible to take out a mortgage in Turkey – indeed, mortgages are only just beginning to be made available to Turkish nationals, who until now have invariably had to pay cash for properties. It is thought that during the second half of this year, Turkey will have developed a mortgage system.

For property investors, the rental market is generally weak. That is because holiday packages are cheaper than flights, so there is no incentive for tourists to book into a two-bedroom apartment for a fortnight. However, with property prices shooting up, there is a genuine prospect of an appetising return on investment.

Insurance

Then there is the risk of earthquakes: new-builds have special foundations and all purchasers are advised to take out insurance. Title insurance is also recommended to protect your investment.

Turkey is no Spain for those thinking of frequent weekends abroad: despite the incredible package holiday deals, there is the absence of low-cost fare operators to the country – it costs £150 to £300 on a charter flight and the flight itself takes more than three hours.

Finally, there remains some uncertainty as to the Turkish government’s liking – or otherwise – for foreign property buyers.

Last summer, alarmed by the sheer amount of land being bought by foreign developers and the implications for prices for local people, the Government froze processing the transfers of property deeds. For some months, it debated whether to place all or any restrictions on foreign purchase, but it now appears to have decided against doing so, presumably preferring the idea of more inward investment.

Turkish Homes – which prides itself on customer service – put a clause in their contracts protecting the client’s initial investment should the purchase not go through.

Get hooked

However, both Clair and Katrina say that it is virtually impossible to visit Turkey and not get hooked: turquoise blue seas, seven months of sunshine a year and long sandy beaches all help make it attractive.

In Britain, Turkish Homes markets not just Clair’s properties but also those from other agents, altogether covering a number of resorts. The company offers a range of services, from property viewing of both new and older properties – there are currently some 1,000 on its books all told – to after-sales support.