Property for £35,000 in Turkey

Turkey's Mediterranean coast provides an escape from our credit-crunch blues

Buying a holiday home may not be top of everyone's to-do list this summer, but a place on the Turkish coast can cost as little as £35,000. Tempted? An astute couple could acquire one with a small deposit and a credit card each: credit card companies are still offering 0percent interest for up to 15 months to those with good credit ratings.

Why is Turkey still so cheap? The country's economy is only just starting to mature and inflation has fallen considerably in the past few years. Low incomes and a predominantly cash-dominated economy have kept prices low, although these are beginning to rise. Prices are still well below the EU average, and since the Turkish property market was opened up to foreign buyers in 2003 British buyers have flooded into the popular cities such as Istanbul, and the south coast resorts of Antalya and Bodrum. These investors are expecting a big increase in property values if Turkey's negotiations for EU membership succeed.

It is hardly surprising that, according to Turkish Tourist Board estimates, 14 per cent of the 3,725,000 foreign tourists who visited Turkey on holiday in the first three months of the year stayed in their own homes. A further 9.8 per cent stayed in rented accommodation, which suggests that there is some demand for good buy-to-let properties in certain areas.

One such area is the beautiful Turquoise Coast in southwest Turkey, which stretches east along the Mediterranean from Bodrum. Nearly 1,600km long, it has sandy beaches, a perfect climate, friendly people and is sprinkled with charming towns and villages.