Posted on 27 May 2011
No one can ignore Turkey in 2011, especially given the trouble anyone who managed to do so throughout 2010 would have had. It is equally hard to deny that Turkey is now one of the hottest overseas property markets in the world, you can’t argue with good old facts and figures.
According to the Association of Real Estate Investment Companies (GYODER), foreign sales increased 40% in Turkey last year. Arguably even more significantly foreigners purchased a total of $2.5 billion worth of Turkish properties in 2011, almost as much as the $3 billion worth purchased by foreigners in the 2 years 2006-2008.
You could put this down to institutional investors, and residential investors, and say it is all in the cities, but we also have to consider the fact that tourism has risen massively in the last few years as well, even during the international financial crisis, which hit tourism especially hard. According to the culture and tourism ministry tourism grew from 23.3 million in 2007 to 28.6 million in 2010, including a jump to 26.3 million in 2008.
Tourism breeds tourism, because it increases word of mouth advertising, which is the best form and only getting bigger due to the wealth of travel information sites and growing use of social media, and also because it leads to increasing accessibility in the form of new flight routes and expanded coverage of existing ones. So, although Turkish tourism was boosted by things like the strong Euro/weak Sterling, it will see its tourism growth continue, if not return to the stronger growth seen before the crisis.
You also have the report from GYODER showing that Turkish property prices have been growing at an annual rate of 6% this year, and Istanbul being named the number one property investment destination in Europe in the PricewaterhouseCoopers Emerging Trends in European Real estate report — a report based on a survey of European investors and property professionals.
The wealth of positive facts and reports about Turkey continue to make it one of the top property investment choices in Europe and the world.