New type of buyers driving property market in TurkeyThe 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.”