Open Turkish Real Estate Market Creating Demand
News Posted On: 04 January 2013
Real estate is a very tricky business and sellers are very cautious about who they offer their property to. But when the market is open to buyers, especially rich ones, from other countries, the market will definitely improve. That is the present situation in Turkey. Real estate owners and dealers have opened their market to international buyers. This has created a lot of demand in the real estate sector. Consequently, prices have also skyrocketed due to the demand. According to experts, this was the best thing that could have happened to a market. The current real estate market in Turkey, especially in the capital Istanbul, is thriving.
Reciprocity Rule Abolishment, the Key
According to the expert, who was of the opinion that the demand has increased the real estate prices, the reciprocity rule abolishment played a key role in shaping the present scenario. Many international investors are interested in the resorts and other types of real estate that attracts tourists. International tourism is a billion dollar market and investing in it is a sure way of ensuring that your investment will at least fetch limited profit, if not outstanding ones. With the government abolishing the reciprocity rule, investors have got the free reign that they wanted all along in turkey.
Numbers to Back up the Real Estate Growth Claim
This was justified by some of the numbers the expert quoted on the condition of anonymity. It showed that the real estate scene in Turkey, especially home prices, registered a growth of 12%. This is against the trend that you are witnessing all over Europe due to the Euro crisis. The same numbers were reflected in the GYODER survey. GYODER is the association of real estate companies in Europe.
But the Turkish real estate market has been surprisingly stable over the last five years. The real estate sector has reported only growth in the last five years, showing that the Turkish real estate scene is not a reflection of the overall real estate scene of the Euro zone.
‘Mature and Stable’
Aberdeen Asset Management, a company that is responsible for international assets worth millions of dollars termed the real estate market in Turkey as mature and stable. Herman Kok, the director of International Research at the company said that the economy of Turkey was hyper-inflationary and extremely volatile. But in the past ten years, the scene has improved dramatically, something that more experts and analysts did not expect. He added that the government should be commended for making the economy stable.
Just 40% Public Sector Debt
The role of government in improving Turkey’s economic condition can be seen by the level of public sector debt the country has. There was a time when Turkey had a 100% of GDP public sector debt. But presently, it is just 40% of GDP, a number that is less than that of France and Germany, the so called superpowers of the Euro zone. This number is even going to fall in the coming years due to the economic policies that the country has adopted. So, investors are definitely going to flock to Turkey in the coming year for real estate investment opportunities.
View our cheap property in Turkey for sale
Written by Les Calvert
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