Posted on 21 October 2010
Turkey is recovering from the global financial crisis strongly, with its economy ranked as one of the best and most stable performers in the region, according to a recent report from real-estate brokerage Cushman & Wakefield.
Real estate investment brokerage Cushman and Wakefield have reported that Turkey is one of the best performing and most stable markets in the region.
“Recent growth has been even faster than expected, aided by strong employment growth, and low interest rates,” the report said. The firm also commented on Turkey having the "quickest stabilisations" and "strongest recoveries" in Europe, with rising employment and strong growth cited across many sectors.
However, the firm tempered this with warnings that demand for Turkish goods in France and Germany could yet impact the economy and also said investors will be watching to make sure the government continues on its path of fiscal restraint and reform.
According to the report the retail and office sectors — with rental growth increases of 4.7% and 2.5% respectively — are currently performing much better than the industrial sector — which saw rental growth fall 7.7%.
This, according to Alan Robertson, managing director of global real-estate services firm Jones Lang LaSalle, is directly correlated to Turkey’s economic outlook.
“When the economy is not good for the industrial sector, industrial rents go down,” said Robertson. “There is a direct correlation.”
Robertson added: “the industrial sector is a little behind the office sector, and will recover next year.”
“When you have gross domestic product growth like Turkey’s, you have to expect a correlation in the real-estate market,” he said.
According to experts the residential sector is recovering nicely as well. David Walker, Vice Chairman (UK) of the Board for the Turkish British Chamber of Commerce and Industry and Director of Spot Blue comments:
"The opinions from those at the heart of the construction sector in Turkey, are very positive and there is a great sense of self belief in Turkey and its economic outlook for the country post global downturn. I have to say I personally believe this has always been the case; optimism has remained high in Turkey and this, coupled with hard work and the steady decline in unemployment, has meant that this faith has translated internationally. We are seeing greater numbers of Europeans seeking to invest in Turkey’s growing economy and property is one of the most popular means of doing so, offering twofold benefits for purchasers – an investment into a growth market and a tangible asset that buyers can enjoy personally too."