Posted on 17 August 2011
New figures show Turkish property prices are continuing to increase at a steady and sustainable pace. According to REIDIN.com’s Turkey Residential Property Price Index sales prices increased 0.83% across the entire country in July compared to June 2011. Istanbul recorded the strongest increase with prices up 1.05% on the month, Ankara and Kocaeli tied for 2nd with 1.02%, Izmir was 3rd with 0.84%, followed by Bursa with 0.66 and Antalya with 0.64%. This is the rate of growth that has been recorded for the last several month in indices released by GYODER.
According to the data rents are also growing, with the index recording a growth of 0.36% for Turkey as a whole. Foreign property investors will be glad to learn that Antalya saw the second strongest growth, with rents up 0.76% on the month, beaten only by Izmir where rents grew 0.81%. Ankara was 3rd with 0.47%, followed by Kocaelu with 0.46%, Bursa with 0.44% and Istanbul with 0.28%.
The index shows particularly strong performance in the new homes sector, with prices growing 1.2% on the month in July, leaving prices now 7.29% higher than a year ago. Within the new home sector few will be surprised to see the performance of Istanbul shining supreme, with prices of new properties on the Asian side of Istanbul growing 3.25% on the month, and those on the European side up 2.45%. This could well indicate increasing demand from Asian buyers.
Another trend to emerge in the data was a shift to bigger properties, with demand for small 51-75 square meter properties up 0.37%, compared to a 1.16% increase in demand for large properties over 151 square meters. Demand for 101-125 square meter properties grew fastest, up 1.65% compared to the previous month. Properties of 76-100 square meters saw demand grow 1.13%.