Posted on 31 December 2010
Several reports recently have predicted that Turkey will be one of the hottest overseas property investment markets in 2011, including a report by the Global Property Guide making a case for Turkey being Europe’s hottest residential property investment opportunity. Here are some of the reasons why Turkish property is making a hot entrance into 2011.
Rapidly Rising Tourism
According to a consensus, Turkish tourism rose strongly in 2009. Despite the fact that 2009 was a year when international tourism fell drastically, Turkish visitor numbers grew 2.7% according to the Ministry of Culture and Tourism. The global flight database also recorded strong growth in visitor numbers, up from 22.6 million in 2008 to 25.1 million in 2009. While we don’t yet have a total for this year, monthly and quarterly figures from Turkstat indicate strong growth.
Rapid Economic Growth
Despite the slowdown in growth to 5.5% in the third quarter, Turkey is still on track to show a growth of 7-9% for 2010 as a whole. The OECD believes this level of growth will continue for the next 2-5 years.
Rapid Mortgage Growth
Reports indicate that the number of mortgages approved in Turkey has grown 30% this year, and the consensus of opinion is for a similar or greater growth next year. This is supported by figures released by the central bank, which show that almost 49 billion Turkish liras worth of loans were approved in the second quarter of this year, up from 38.6 billion in Q2 2009.
All these things give us cause for great optimism about the investment prospects of Turkish property in 2011.