Eurozone Pain To Continue In 2013 – Escape The Punishment With Property In Turkey

Escape Eurozone Recession Do you remember watching the Bond film Casino Royale?  If so then you will probably remember the torture scene involving the wet rope with the knot tied at the end and the chair with the hole underneath.

I don’t know about you but whenever I see it,  it makes me want to say “please make it stop!” This is what it has been like for investors for most of the last five years in Europe.

At times it has seemed like this long period of economic decline might not have an ending. There would be no end to the torture.

If you are old enough to remember the last big recession in the early 1990s, it didn’t really seem half as long or as painful as this one, did it? Yet it has just been announced by the ECB that economic weakness in the Eurozone will extend into 2013 taking it into a fifth year of uncertainty.

This is not good news for us property investors hoping for a better year ahead in Europe. However this hasn’t stopped investors planning to expand their portfolios in countries like the UK. Perhaps these investors know something we don’t and are anticipating a near 15-year spell of growth which followed the end of that last big recession.

Looking on the bright side, the ECB do expect recovery later in the year, although this will depend on a few countries complying with strict austerity, most people found difficult to swallow in 2012. What are the chances that the populations of Greece and Spain will be more welcoming to these in 2013?

So in the meantime if you are a European property investor looking for property that will pay for itself, where should you be looking in 2013 if you are not convinced about prospects of a recovery?

Turkey has weathered the storm quite well since 2010. Unlike other countries in Europe which have been firmly rooted in recession or only modest growth in GDP, Turkey posted GDP growth of 9% in 2010 and 8.5% in 2011 and despite a cool down in 2012 it is expected that GDP will be in the region of 4%.

Growing economies are one of the main drivers of property values as populations get wealthier and demand increases for housing close to business centres of major cities. This goes some way to explaining why property prices in Turkey continue to rise as values continue to fall elsewhere in Europe.

So what can we expect in 2013?

Turkey’s economy is export driven and it managed to bring in a record $135 billion of revenue in 2011 by diversifying its markets to the Middle East and North Africa.

Turkey is in the happy position of not having to rely on Europe for its own economic prosperity even though it can still benefit if things improve. So if Europe does begin to recover in the latter part of 2013 as the ECB thinks it will, then this can only help Turkey .

Whatever happens in 2013, expect property in Turkey to still be the number one choice for investors looking for relief from another punishing 12 months in Europe.

Are you feeling optimistic about the Eurozone in 2013? Please leave your comments below:

Kind Regards

Brett Tudor
Property Expert