Posted on 16 July 2011
Earlier this week we revealed that Turkey is now the fastest growing economy in the world, based on the latest data from Turkstat showing 11% year on year growth in the first quarter — beating Argentina (9.9%) and China (9.4%) by a considerable margin. And now we can reveal that Turkish property prices are continuing to grow at over 6% per year.
According to the Turkish association of real estate investment companies (GYODER) in its house price index for June, Turkish house prices grew 6.40% in the year ending June 2011. For some reason GYODER hasn’t released an index for May, but in April prices grew 6.45% year on year, in March they grew 6.17% year on year, and in January and February they grew by 6.30% and 6.18% respectively.
According to GYODER sales of Turkish property to foreign buyers grew by 40% in 2010 compared to 2009; the total of $2.5 billion in sales almost as much as the $3 billion in the 2 years ending 2008.
Surely it is no coincidence that demand from foreigners grew so sharply during a year of incredible economic growth, with 11.7% GDP growth in Q1, 10.3% in Q2 and 8.9% for the year. So, with the economy picking up where it left off this year, it is a good bet that we will see demand from foreign buyers continue to grow — especially with other metrics like tourism also growing strongly.