Turkey Continues To Impress As Overseas Property Hotspot
News Posted On: 20 December 2010
Turkey's speedy recovery from the global crisis has earned praise from the International Monetary Fund and has gained national attention. GDP growth this year is anticipated to cap out at about 8 percent and continue to be stable into 2011 as well. Turkey's ability to recover so quickly and maintain such a strong economy is commendable as very few countries in Europe have been able to do the same.
Though some concern looms about regarding whether this speedy recovery will cause a housing bubble, many believe that the property market will continue to grow and be stable throughout the next couple of years. Housing has been booming this year and interest at home as well as overseas investors have taken
advantage of such a strong market. For example, in three months alone, July through September, almost 100,000 people took out 6.9 billion Turkish Liras worth of mortgage loans, which is a 28 percent increase from last year.
The construction industry has boomed as well, with low interest rate loans drawing in developers. Construction has grown 24.6 percent in the third quarter alone this year, making it the fastest-growing sector when compared to sectors such as manufacturing, financial services, and agriculture.
To help prevent a housing bubble and future foreclosures, the BRSA has decided that beginning January 1st, 2011, bank loans will not be able to exceed 75 percent of the value of the house. Tevfik Bilgin, BRSA chief, has stated that "most of the economic crisis int he world started in the mortgage sector." He is taking the measures that he can to assure that this will not happen in Turkey. He also stated that he will take measures to ensure that properties are surveyed and priced correctly.
Global Property Guide reports that Turkey is one of the most attractive and strong property markets currently. According to their report, foreign property investments have been
significant as investors from Europe, the United States, Canada, Asia, Latin America, and Africa have been taking advantage of such prime property investments in the hopes of significant monetary returns in the years to come. With low interest rates on loans as well as an abundance of properties to choose from, it is anticipated that the property market will remain strong in the upcoming year as well.
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