Strong growth in Turkish property market
Turkish property is experiencing strong growth, after years of lacklustre performances, according to the Global Property Guide. Data from REIDIN has shown that in the year to January 2013, nationwide residential sales prices for existing homes increased by 17.1 per cent. When adjusted for inflation, this figure stands at 9.13 per cent.
REIDIN's Turkey residential property price indices is calculated on a monthly basis, covering seven major cities, 71 districts and 481 sub-districts, painting an accurate picture of market conditions. While new home values only increased by 1.8 per cent when adjusted for inflation in the year to January, it is clear that growth isn't as slow paced in the existing homes sector.
Antalya witnessed the greatest price hike, with values soaring by 22.62 per cent over 12 months. This was closely followed by 19.47 per cent price growth in residential sales prices in Istanbul. House prices rose by 16.54 per cent in Adana, 16.07 per cent in Izmir, 13.92 per cent in Ankara, 9.42 per cent in Bursa and 6.74 per cent in Kocaeli.
As one of the most popular holiday destinations, it is perhaps no surprise that price growth was strongest in Antalya, as investors rush to take advantage of the tourism industry. While Turkey has largely escaped the property price drops experienced in European countries like Spain and Greece, values are still relatively low. This is attracting overseas buyers to Turkey in search of a bargain second home or a holiday let opportunity.
However, investors should still show caution when entering the market, as figures from the Turkish Statistics Institute showed that the number of sales dropped by 2.35 per cent in Q3 2012, the Global Property Guide reported. While this isn't cause for concern, it is a reminder that Turkey isn't yet experiencing a real estate boom. Nonetheless, it is expected house prices will continue to rise throughout 2013, as the rest of Europe struggles to emerge from the financial crisis.