Turkey Property Prices Show Strong but Steady Growth in 2011

The world is currently experiencing a shaky, even volatile and definitely uneven recovery, with some governments trying ever harder to cool roaring inflation and fend off a bubble, and others struggling to maintain growth as they pull back on unsustainable stimulation. Global property markets are like a microcosm of this; the sentence above can be overlaid onto them and still make perfect sense.

Amidst this volatility and uncertainty investors look to emerging markets for growth, and according to recent reports Turkey property is delivering.

According to the Turkish Association of Real Estate Investment Companies, Turkish house prices are growing at an annual rate of 6% in 2011. The body’s index shows growth of 6.45% year on year in April, following growth of over 6.17% in March, 6.18% in February, and 6.30% in January. The monthly growth rate has not exceeded 1% during this period, which shows that the growth is slow and steady.

The growth is an acceleration on the end of last year. In its December index GYODER said Turkish house prices were up 5.32% year on year, and again, a steady 0.44% compared to November.

It is entirely possible if not likely that foreign investors and holiday home buyers are a main driver in this growth. According to GYODER sales to foreigners grew 40% year on year.

In property investment, the focus is mostly on rental rates and rental yields, but capital growth is always a nice bonus, and when investors plan on buying to flip (resell quickly after purchase for a profit) then it is a must. So such solid price growth is certainly not going to hinder Turkey property’s appeal to foreign investors.

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Categories: Property Invest / Turkey Property


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