Real Estate prices continue to rise in Turkey - Emerging Real Estate

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 Real estate prices continue to rise in Turkey

New data is showing that house prices in Turkey have increased again, according to REIDIN, the creators of Turkey’s real estate index. Prices have been pushed up by domestic demand as well as a flourishing overseas market, with foreign buyers significantly increasing their property investment in the country. Prices have risen country wide but Istanbul has unsurprisingly shown the strongest levels of growth with a year on year increases of 7.42%.

Turkey is trying to balance demand with supply but the impressive growth in property value has largely been driven by a soaring demand which cannot be met by the current supply. Residential real estate demand in Istanbul is annually in the region of 250,000 homes, but supply is unlikely to reach beyond 180,000 homes this year. This imbalance is predicted to continue for the foreseeable future.

Data from the Central Bank of Turkey also shows that the country’s mortgage market grew 25% in 2010 and similar growth is expected this year. Turkey’s economy is growing rapidly – with an average GDP growth of 10% in 2010 and 11% GDP growth in the first quarter of 2011. This in turn is leading to rising employment, rising incomes, and growing affluence amongst the Turkish population, leading to a higher domestic demand for property. Add to this the fact that Turkey has one of the fastest growing populations in the world and you can see how demand is constantly growing.

It is not just the domestic market of course that has led to the growth in the country’s real estate market. Foreign investment has increased rapidly over recent years and the trend is continuing. The country’s stable banking system and growing economy, together with numerous recent reports naming Turkey as the number one hotspot for foreign property investment, all combine to create a powerful case for investment. Should you wish to discuss any of our opportunities for property investment in Turkey, please do not hesitate to contact us.