Posted on 21 May 2011
As European residential property markets still clamber toward recovery ever-worrying about a double dip, and authoritative sources tell us the US property market has already double dipped, we look at markets like Turkey to see that they are experiencing strong growth into 2011.
According to (GYODER) the Association of Real Estate Investment Companies’ data Turkish house prices are rising at an annual rate of over 6% this year. According to their index, which uses data from developers prices in January were up 0.95% month on month and 6.30% year on year, followed by growth of 0.19% month on month and 6.18% year on year in February, growth of 0.19% on the month and 6.17% on the year in March and growth of 0.56% month on month and 6.45% year on year in April.
The property market is growing from all sides. We know that construction in Istanbul and the major cities is booming, the commercial property is becoming one of the hottest in the world, and the population growth in numbers and affluences is making residential investment a near no-brainer, especially with the growing mortgage market. But holiday home markets are almost certainly witnessing price growth as well.
According to GYODER sales of property to foreigners grew 40% in 2010, with sales of $2.5 billion almost as much as the $3 billion seen in the 2 years ending 2008. As we know, holiday home sales, including investments are fuelled by rising tourism. In 2010 Turkey welcomed 28.6 million visitors according to the tourism ministry. This is up from 23.3 million in 2007, 26.3 million in 2008, and 27 million in 2009 — as you can see the international financial crisis only slowed the rate of growth.
Turkey is a warm destination with a year-round season featuring 300 days of sunshine per year, great beaches, a developing infrastructure and some of the lowest property prices in the world. Now, at a time of financial turmoil, Turkey’s stability and growth, combined with such a powerful package are making it, rightly, one of the hottest property markets in the world.