British pounds to buy Turkish property?

[AshleyIngle]

I am finding developers/ property maintenance/ agents, aswell as exporters and businesses in Turkey are wanting British Pounds and sometimes Euros for sales and trading in Turkey, more than Turkish Lira.

Is there still no trust in the Turkish Lira after it had been re-evaluated, or do they speculate on currency movements and convert at the right time to maximise profits?

 

[07estates]

I am finding developers/ property maintenance/ agents, aswell as exporters and businesses in Turkey are wanting British Pounds and sometimes Euros for sales and trading in Turkey, more than Turkish Lira.

Is there still no trust in the Turkish Lira after it had been re-evaluated, or do they speculate on currency movements and convert at the right time to maximise profits?

Some building construction companies build villas and residences with money from investors and these investors are mostly british and thats why some companies give out the selling prices in Pound or Euro.
A lot of customers like it to if they find prices in Euro or GBP while its more easier from them to say 'Yes - thats a good price' or 'No - its too expansive'.

In summertime the TurkishLira goes up and this is not good for the customers and the agents in here. The customers wants to have stable prices and not every month a new one.

Thats why you will find a lot of properties only in GBP or Euro.

Thomas

 

[Maltese Falcon]

Having spent the last 8 years in Turkey primarily selling re-sale property, the value of the Turkish Lira has been pretty inconsistent against the Euro and UKP. Most of the property is advertised in Euros and Pounds (to foreign markets) and converted to Turkish lira (if the seller is Turkish) when the purchase deposit is paid and the final payments are made.

I have recently left Turkey as the market seems to need a breather from over-supply. I am now in Malta but do not see this as a particularly good property investment opportunity at the moment - but I think it is a great location for people wanting a Mediterranean lifestyle with a low cost of living and rentals.

 

[MNT]

TL/GBP exchange rates and inflation in Turkey:

Consumer price index (CPI) shows the inflation rate for consumers. In Turkey annual changes in CPI was 6.5% for 2009, 10.1% for 2008 and 8.4%, 9.7% and 7.7% for the years 2007,2006 and 2005.

The exchange rate of 1 pound for Turkish Lira at the end of the year was as follows during the same period: in 2009 2.4 TL for 1 pound, in 2008 2.2 TL for 1 pound and 2.3, 2.8 and 2.3 TL for 1 pound respectively for the years 2007,2006 and 2005.

As at the end of November 2010 annual change in CPI was 7.3% and the exchange rate for 1 pound for Turkish Lira was 2.3 TL.

As for the fluctuation in these figures, maximum inflation rate was 10.1% and the minimum was 6.5% for the last 5 years.

During the same period GBP was most valuable in 2006 with 2.8 TL for 1 pound, but the rate of exchange was generally around 2.3 TL.

A conservative estimate for TL/GBP exhange rate could be around 2.2-2.4 TL and inflation rate could be estimated to be around 7% or 8%.

Real estate agents and sellers try to give property prices in the currency of the buyers to give them a clearer idea of property values.

I would suggest property investors to get their information from the buyer side rather than the seller side.

You can find detailed information at BeachheadTurkey website.

Kind regards,

MNT