The Bodrum peninsular is one of Turkey's most popular areas for property buyers - and that doesn't look like changing in 2008.

Bodrum has a great choice of property - from city centre apartments to sea view villas or multi-million pound palaces; along with excellent nightlife, entertainment, dining and leisure facilities. Along with thousands of British and European tourists, Bodrum attracts the cream of Turkish society, who come each summer to see and be seen.

Local planning controls limit the height of building but there has been a lot of development in recent years. This makes choosing a high-quality property in a good location essential if you intend to rent or resell. Avoid the cheaper re-sale properties, which are often poor quality. Buy from a well-established company with a proven track record of sales to foreigners.

Despite significant increases, local prices remain affordable with new apartments costing £60,000 - £90,000; and villas available from £130,000. The village of Gumusluk with its small beach, harbor side fish restaurants and pretty surroundings is very popular.

In neighboring Yalikavak the sea-front promenade and town centre have been sensitively redeveloped and a plush marina adds to the resort's appeal. Many properties have sea views and local prices have risen sharply on the back of strong demand.

A number of new developments are underway in Tuzla close to two golf courses, currently under construction. Most have good on-site facilities, which is important as Bodrum town is a 15-minute drive away. One-bedroom apartments are available for £54,000 and two-bedroom, two-bathroom apartments for £79,000. The development has a fitness centre and sauna, children's play area, communal outdoor and heated indoor swimming pools and spacious landscaped communal gardens.

The New York Times has labeled the Bodrum Peninsula the 'St Tropez of Turkey' and with an international airport, Blue Flag marina, vibrant nightlife and quality property opportunities, it's not hard to see why. Unrivalled sailing, proximity to Bodrum International Airport, access to the massive rental market that flocks to this beautiful region every summer – recent reports suggest that winter charter flights between Bodrum and UK/Germany may be introduced this winter – and the restriction of development in the region which will limit future supply all point to one of the best investment opportunities currently available anywhere in the world.

Indeed, Bodrum is one of the most popular coastal regions of Turkey, attracting visitors not only with its own charms. Knight Frank's latest research on European residential markets suggests that the Turkish residential market will outstrip many European property markets this year, noting that prices will rise 12.5 per cent on average. This significant nationwide property price increase is representative of property in Bodrum, which is in great demand from both domestic and international buyers and looks likely to go from strength to strength in the near future.

Demand for property is likely to remain strong, particularly as the area's infrastructure and facilities – like the new golf courses – continue to develop. There are a number of golfing projects being planned over the next few years, which will attract many new buyers to Bodrum's expanding property market but due to strict building regulations there is little threat of over-development ruining the surroundings. There is a two-storey height restriction on buildings here, helping to preserve the area's character. This restriction on new constructions will also limit future supply and create great investment opportunities for those who already own property in the region or those who buy in the next few years. And those that are looking to buy in Bodrum have a wide variety of options to choose from. The choice of property is some of the best on the Turkish Riviera!