Opening up of Turkish property market driving demand
Opening up the Turkish property market to new buyers is helping to drive demand, according to one industry expert. Bilfer Budak Roche, who heads up Leggett Turkey, explained that since the country gave access to buyers from new countries such as the Middle East and Russia, Turkish real estate has been the subject of much more activity.
Abolishing the reciprocity rule has also helped to drive demand for some of the country's key resorts, ensuring the eyes of many investors are firmly on Turkey. Research from the association of real estate investment companies (GYODER) has shown that in 2012, new home prices in the country grew by just over 12 per cent, bucking the trend for falling prices across Europe.
This follows the trend for positive growth experienced by Turkey over the last five years. In 2010, the Global Property Guide reported that the country's growth was already faster than that of other European countries. The OECD projected at the time that this would continue, thanks to their small budget deficit, good banking system and controlled inflation.
Aberdeen Asset Management has also deemed the country's market "mature and stable". International research director at the corporation Herman Kok stated: "Turkey used to be a hyper-inflationary economy and highly volatile [but it] has left that phase behind in the last ten years. Since 2002 the government has created a stable platform for the economy".
This is illustrated by the lower level of public sector debt, which has been reduced from 100 per cent to 40 per cent of GDP - much lower than both Germany and France. As the Turkish environment becomes more stable, more and more foreign investors are flocking to the country.
Mr Roche stated: "We fully expect to see demand from international buyers to continue growing in 2013. GYODER estimate that overseas investment in the Turkey property market is set to rise from the current $2.5 billion (£1.5 billion approximately) a year to around $10 billon (£6.1 billion) per annum."