New type of buyers driving property market in Turkey

  • 12 years ago
  • Uncategorized

The latest Knight Frank Global
House Price Index showed that Turkish property prices boasted the third fastest
growth in the world in the year to June 2012. Only Brazil and Austria saw
prices rise faster and property values in Turkey rose by more than 10 per cent
in the last twelve months.

Changes to property ownership
laws in Turkey have opened up the country’s property market to millions of
foreign buyers and it is overseas investment that is helping to drive demand
and prices for Turkish homes. Keep reading to learn more.

Property sales to foreign buyer could top $10 billion in the medium
term

Turkey’s Association of Real
Estate Investment Companies
(GYODER) forecasts that property sales to
foreigners could nearly double to $4 billion (£2.48 billion) in 2013, from $2.5
billion (£1.56 billion) last year.

Annual purchases could reach $10
billion (£6.22 billion) in the medium term, says the group’s chairman Isik
Gokkaya, who is leading calls for further tweaks to regulation to include
residence permits for foreigners who buy property in Turkey.

Reuters reports that Turkey has
seen a near tripling of per capita income over the past decade and this has
fuelled a property rally that has been supported by the introduction of
mortgage financing, rapid urbanization and demand for more luxurious,
earthquake-proof homes.

According to real estate agent
Colliers International, the average asking price for a luxury apartment in
Istanbul has more than doubled over the last 7 years. The average price at the
end of 2011 was $4,500 (£2,800) per square metre compared to just $2,000
(£1,244) in 2004.

While the prices of apartments in
Turkey may have risen sharply, they still remain extremely cheap when compared
to other major cities.

“These prices are around a fifth
of the cost of similar properties in Hong Kong or London. The Global Property
Guide found that Istanbul was down in 30th place in the world’s most
expensive cities for property, meaning you will get much for your money than
you will in many other major locations.”

Author Homesgofast.com director Nick
Marr


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