Posted on 11 September 2009
Colliers international, the giants of world commercial real estate have issued a detailed analysis of the Turkish real estate market. The overall thesis of the report is that the recovery has already begun, and will continue to gather pace, with strong growth resuming in the second half of 2010.
Still, it is almost a common view that a real recovery will occur starting in the second half of 2010,” it said.
The report really stated the obvious on the residential market, saying that [in the downturn] Turkey’s residential market was hit hard by the fact that credit dried up, and the rapid exodus of foreign investors, who had become prominent in the market.
We expect home prices to stabilize and begin recovery when investor confidence returns and the expectation of a further decrease in prices is over. The latter may come sooner,” said the report.
The report also showed that tourism figures have not been as badly affected as was predicted (see image) and also that demand for residential property in Istanbul is strong despite the crisis conditions, explaining:
” For example, we believe that residences being developed around Bomonti will attract high demand thanks to new connection roads and tunnels. We also hold the opinion that demand for such areas as Riva, Sarıyer and Bahçeşehir will increase due to the third bridge that is planned to be built across the Bosphorus. However, due to excess supply already available in Bahçeşehir, the prices will not rise as much as in other districts.”
Overall the report was very upbeat on the future of Turkish real estate. Confirming what we have always believed: yes, we are going to be affected by the international downturn, but all the growth potential will remain intact ready for a strong and rapid recovery once the dust settles.