More diverse international investors in Turkey combined with growing demand from a wealthier population have led to an increase in property purchases and in some areas a tighter supply of stock, said leading Turkish property agency Spot Blue International Property in October.
The prominence of Gulf and Russian investors in today’s Turkish property market, already popular with British and European buyers, means demand for quality second homes in coastal resorts, as well investment property in Istanbul, is on the rise. Increasing home ownership levels – both second homes and primary residences – amongst Turkish people are also boosting the market. The effect has led Spot Blue to launch a drive to find more properties to sell and expand the listings of homes for sale on its website, www.spotblue.com.
“We’re especially keen to boost our portfolio of mid to upmarket properties in the popular second home resorts of bodrum“>Bodrum, Kalkan, Alanya and Fethiye,” said director at Spot Blue Julian Walker. “Meanwhile, istanbul_park”>Istanbul is currently the buzz word amongst international investors, especially those from the Gulf where Turkey has recently held centre stage at the Cityscape Dubai show, and we’ve had steady business there in recent months. So we’re looking to work with new, reputable developers, who have solid product in desirable parts of the city, which we can market to our international client base.”
Unsurprisingly, strong interest continues to drive house price growth in Turkey. Statistics released in October by the Central Bank of the Republic of Turkey show that between January and July this year residential prices increased month-on-month by an average of 1.23 per cent, with the highest monthly increase being recorded in February (1.38 per cent) and lowest in January (1.13 per cent).
Year-on-year house price growth has been even more significant, increasing consistently each month since April, when it was 12.09 per cent, to reach 12.9 per cent in July. Focusing on Istanbul only, property prices for a representative selection of new projects on the European side of the city grew by 1.48 per cent month-on-month in August, while on the Asian side this figure was 2 per cent, according to the REIDIN-GYODER New Home Price Index.
“Turkey is a liquid market on the rise,” continued Julian Walker. “This contrasts heavily with the over-supplied, depressed state of other popular destinations in southern Europe, where many vendors asking unrealistic prices have had to play a painful game of catch-up when they do decide to drop their price. With this in mind, right now at Spot Blue we’d welcome new stock that ticks the right boxes.”
Reassuringly for property buyers, Spot Blue is one of few Turkish property firms in the UK that runs due diligence reports on developers before deciding to work with them. Spot Blue’s company reports check not only that a developer is legally registered, but also when it was registered, who its directors – past and present – and senior staff are, its development history and completion status, and its annual profits.