Posted on 24 September 2010
Overseas mortgage provider Conti has provided more than mortgages for Turkey this month. According to the firm, Turkey was the third biggest destination in terms of demand for mortgages from foreign property buyers.
18% of all Conti’s mortgage applications for overseas property purchases were for mortgages to buy Turkish property, after Spain with 24% and France with 43%. Doing the math that also means that 85% of Conti’s overseas mortgages went to those three countries, it is nice to see Turkey in that league, very nice indeed.
It is all go in terms of positive news for Turkey at the moment. Internationally respected publication Global Property Guide has just published a second report recommending Turkish property as the best residential property investment in Europe. It was just voted Conde Nast Travellers destination of the year 2010, and the economy is booming, with 10.3% annualised growth in the second quarter.
Combine this with the government’s constant reform; reducing inflation (from 34.9% to 5.7%) and public debt (from 70% of GDP to under 40% of GDP) to their lowest in years, whilst more than tripling reserves (from 26.5 billion to 72.5 billion), all adding to confidence in the stability of Turkey as it proceeds toward receiving investment grade status.
Finally we have the effects of all this reform; namely low interest rates and high liquidity, which both make it comparatively easy to buy property in Turkey, which in the coming months and years is more than capable of driving up prices. All in all it is an exciting time to be involved in the Turkish property market.