Turkey Property Prices Growing at 6 Percent Per Year

Turkish property prices have surged into 2011 with an yearly growth rate of over 6% for the first 4 months according to Association of Real Estate Investment Companies (GYODER).

Their monthly index shows prices grew 6.45% in the year ending April 2011, and 0.56% compared to the previous month. This follows year on year growth of 6.30% in January, 6.18% in February and 6.17% in March. Price indexes in Turkey are few and far between, and while it is based on data from developers the GYODER index confirms what we know from other sources, which tell us of the massive growth in construction across major cities and especially in Istanbul, and of a commercial property sector that is becoming the hottest in the world in those cities.

We also hear about the heat in the residential property markets in those cities, which is to be expected because the populations are among the fastest growing in the world, both in numbers and in affluence. Holiday home markets are also seeing growth. GYODER recently released data showing a 40% growth in sales to foreigners in 2010, the total figure of $2.5 billion was almost as much as the $3 billion seen in the 2 years ending 2008.

It is true that some of those sales will have been made by residential investors and expats, but with the massive growth in tourism and in Turkey’s profile on the overseas property stage, it is inconceivable that growth in holiday home sales and holiday home investments did not also play a part. According to the tourism ministry Turkey welcomed 28.6 million visitors in 2010. This is up from 27 million in 2009, 26.3 million in 2008, and 23.3 million in 2007.So, the Turkish property market is growing across the board, and with Erdogan set to get a 3rd term in June there is no sign that the growth will slow anytime soon.

All of the above are surely strong indicates as to why investing in the Turkish property market is attracting both experienced overseas property investors as well as those looking to invest in the overseas property market for the first time.As well as the establish coastal resorts attracting buyers we have also seen in recent years the increasing demand in property in Istanbul which some are now calling the Barcelona of the east.