Turkey is set to become Europe's next property hotspot as Britons look further afield for sun, sea and sand, and spurn the over-development and high prices of traditional European destinations.

With its warm climate, rich cultural heritage and 4,000 miles of pristine coastline, Turkey is attracting more people looking for a holiday home or retirement property than ever before. More than 70,000 foreign nationals now own a property in Turkey and a quarter of those are British. Within two or three years, that number is expected to grow to half a million.

"The property market in Turkey is appreciating month by month, the golfing industry is booming and attracting more westerners, and the stock market is rising, reflecting Turkey's buoyant economy," says Martin Gow, head of International Group Development at global property group Parador Properties.

But it is Turkey's coastline that is its main draw: this June the country won 235 Blue Flag accreditations for its beaches and 14 for its marinas in the International Blue Flag Awards 2007. On top of this, Turkey's infrastructure and roads have improved dramatically in recent years, many of its airports have been updated, and most municipalities have tight planning regulations which restrict building heights to two or three storeys.

Not surprisingly, research group Global Property Guide recently rated Turkey among its top five European countries for overseas property investment. Property prices are a fraction of those in some popular European destinations. You can still buy a two-bedroom apartment for £30,000 or a three-bedroom detached house for £60,000, although prices are obviously higher in more popular and upmarket areas.

Parador Properties has a wide range of properties on its books along the southwest coast and inland. Popular areas include Bodrum, Aydim, Didim and Kusadasi. The company arranges inspection tours of its properties, helps with legal and financial matters, and offers after-sales services.

Avatar International also operates in Turkey and focuses on the beaches of the southwest and the striking countryside of Capadoccia which lies at the heart of the country and is a UNESCO World Heritage site. And Overseas Property UK sells houses and apartments in the coastal areas of Fethiye, Oludeniz and Gocek among others. Buying property in Turkey has become much easier for foreigners, after a new law earlier this year encouraged a mortgage industry to develop in the country. This is particularly useful for people wishing to buy as an investment.

"The hot news for Britons is that for the first time sterling mortgages are available in Turkey for buyers over the age of 25," says Parador's Gow. "Rental opportunities in the Bodrum area are particularly good as it is a popular area with the Turkish themselves as well as foreigners, giving buy-to-let investors extra opportunities to tap the home market for rental income."

Bear in mind that although there may be some tempting investment opportunities, Turkey's rental market is still relatively under-developed compared to more established European destinations. Buying in Turkey should be safe as long as you take a few precautions: n When choosing an overseas property company dealing with Turkey, make sure it is a member of the Association of International Property Professionals. All AIPP members are vetted and abide by a professional code of conduct.

Check the property company you use is independent and not linked to just one builder.

Always use a reputable estate agent and lawyer: buying property in Turkey has some procedures you may not be familiar with.

Any money transfers you make should be done through a bank so you have a record of where the money goes.

If you are buying off-plan, never sign a document until it has been checked by your lawyer or adviser.

Get the local Notary Public to draft contracts and proof of transactions.

Free copies of the Echo guide to buying property in Spain, Turkey, Portugal and Cyprus, sponsored by Parador Properties, can be obtained by calling 0870 834 7583.