Turkish Property Market Goes From Strength To Strength
News Posted On: 28 November 2012
The Turkish property market continues to go from strength to strength and its plans for future growth are even more ambitious. GYODER is the country's Association of Real Estate Investment Trusts. The association issues a monthly index of new home prices in the country, which has shown double digit annualised growth month-in-month-out for over 2 years.
The latest index is no exception, with new home prices up 0.73% on the month and 10.25% on the year in October according to the report. This follows September's performance of 0.32% month on month growth and 12.23% growth on the year, and Augusts' of 0.32% and 11.78% respectively. GYODER became well known on the international property scene last year when it revealed that the $2 billion invested in Turkish property by foreigners in 2010 was not only a 40% increase on the previous year, but was more than the 2 years between 2006 and 2008 put together.
This week GYODER is back in the news as part of the Turkish government's ambitious plans to attract $10 billion per year in foreign property investment.
The plans seem ambitious on the face of it, but with Turkey's recent law-change allowing an additional 194 nationalities to buy property in Turkey, including those of the wealthy gulf and Arab states to buy property in Turkey, as well as Russia and China, it really isn't all that much to expect. Indeed, foreigners purchased $1.1 billion worth of property in one month in May this year, just before the government revealed the new list of nationalities that would be allowed to buy (therein allowing the law-change to take effect), as they rushed to beat the influx of Arab buyers, whom they will hope to resell to.
In its prepared statement, GYODER said foreign-direct investment in Turkey's property market is expected to rise to $10 billion annually from the current $2.5 billion a year.
GYODER noted that a government ruling this year to demolish and rebuild about 7.5 million houses erected in the wake of an earthquake that killed about 20,000 people in Turkey's western Marmara region in 1999, before construction laws were improved, will also open opportunities for investors and developers.
Murat Kurum, chief executive officer of Emlak Konut Gayrimenkul Yatirim Ortakligi (EKGYO), a Turkey-based real estate investment trust, told a recent press conference in Istanbul, the rule change is expected to stimulate new real estate investment activity in Turkey, despite financial problems being faced by many European and Asian nations.
View properties for sale in Turkey
Written by Les Calvert
Back to news articles for this country