What Does the Cyprus Election Mean for Turkey’s Property Market?

Summary: Examining how events in parts of Europe could bode well for the development of the property market in Turkey.

With the world’s media more interested in Cuba and Kosovo, the shock defeat of Tassos Papadopoulos on Sunday in the Republic of Cyprus elections has gone largely unnoticed by many.  And yet the defeat of one of the key European opponents to Turkey joining the EU could have a significant and immediate effect on Turkey’s property market for example.

If you personally have an interest in real estate in Turkey – whether just general or actually fiscal – what does the Cyprus election mean for Turkey’s property market?  Well, it bodes exceptionally well for the long-term, healthy development of an affluent and sustainable real estate sector in which many may probably now invest.

Those who made money in Bulgaria from property made their profits before the nation even joined the EU.  If you’re an investor in so called ‘emerging markets’ – i.e., those that have yet to reach and realise predicted potential – you stand to make the largest margins of profit for taking the greatest level of risk.  Okay, so it is far from an exact science, but hopefully you get the point that if you risk buying in before a certain action or development takes place that will practically ensure the healthy economic development of a given location, you will buy more cheaply.  Then, if the certain action or development comes to fruition this will support increasing interest, affordability, movement and profit in the property market, and you stand to prosper greatly.

So, going back to property in Bulgaria for a moment – prior to EU entry those who gambled on the nation meeting all of the criteria for accession and who bought in before the EU welcomed the nation officially into the Union in 2007 saw the largest gains in the price of their property.  So it follows that those who gamble on Turkey being accepted into the EU fold by, say, 2015 potentially stand to make the largest profits.

But there was so much against Turkey ever moving further forward with its bid for EU entry because of one man – namely the aforementioned Tassos Papadopoulos – that there really was a restriction on the numbers of those willing to gamble on this particular nation.  Sure, there are those who have bought in on the back of the thriving tourism market that no one can hold back…but the big money comes in the form of pure land banking speculation, of buying commercial and residential stock in cities where EU entry could bring massive investment commitment, job creation, domestic affluence advancement, demand for property stock and so on and so forth.

So, going back to the question posed at the start of this article – ‘what does the Cyprus election mean for Turkey’s property market’ – it means that one of the largest, most immoveable obstacles to Turkey’s EU accession has been removed from the nation’s path.  It means that talks can develop, it means that Turkey can begin to progress further, it means the Cyprus problem may be resolved, (another hurdle in Turkey’s EU accession progress), it may well mean that greater investor interest now centres on Turkey’s property market.

But we could be wrong!

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