Turkey property prices ‘to rise 5%' says expert
Property prices in Turkey will rise around 5% in prime locations during 2013, it has been predicted.
Any rise will follow this year’s 12% year-on-year increase, highlighted in the latest REIDIN.com-GYODER New Home Price Index.
Turkish property specialist Leggett Immobilier says figures like this can be misleading, because Turkey has a series of micro markets dependent upon location and property type.
Trevor Leggett, Chief Executive of Leggett Immobilier, tells OPP Connect, “Here at Leggett Turkey we see the rise in prices slowing next year but we still expect low single digit growth. Of course, it all depends upon location but we expect homes in prime locations (Istanbul, Izmir, Bodrum) to see price increases of around five per cent.”
He says there is no denying that the Turkish property market has experienced strong growth. “However, it's clear that 2012 has been another excellent year for the property market here.”
Mr Leggett says it started with a report issued by accountants PWC and the Urban Land Institute that ranked Istanbul as the top city in the world in terms of investment and development and it is finishing in an upbeat mood as Fitch recently upgraded Turkey to "Investment Grade".
Overseas buyers fall into two categories - those who are seeking an investment that will offer a good yield and the potential of long term capital gain and those looking for a holiday home.
“The former are mainly looking at Istanbul. There is a consistent demand for property in Istanbul and investors have plenty of stock to choose from.
“However, those looking for holiday homes tend to look at the popular seaside resorts such as Bodrum and Antalya. There has been huge investment in local airports and these resorts are now easily accessible. They offer spectacular beaches, plenty of bars & restaurants and, of course, pretty much guaranteed good weather. We fully expect to see demand from international buyers to continue growing in 2013.”
Bilfer Budak Roche, who heads up Leggett Turkey, says investment in prime land is worth considering. “Traditionally we have seen international interest in buying coastal villas, flats and apartments in well-known resort areas. This demand continues and has been strengthened by the recent revisions to Turkish property law abolishing the "reciprocity" rule and giving access to buyers from new countries including those in the Middle East and Russia.
“We have also seen an increase in demand for more commercial style projects including hotels, developments and investment property.
“One area we see as key to good investment in 2013 is the purchase of prime land. Many of the best sites have been snapped up and it's becoming harder to find suitable plots, this is where local knowledge really comes to the fore.”
For instance, Leggett Turkey is marketing a 26,904 square metre building plot on the coast near Kas, which is ideal for a hotel, for around ?3.8milllion and one of the best plots in Istanbul, with sea views, full planning permission and a prime location at ?23million.
“We fully expect to see demand from international buyers to continue growing in 2013,” adds Bilfer Budak Roche.