Property investors have seen better returns in Turkey than anywhere else in Europe, in terms of capital appreciation, over the past year, after the latest Knight Frank Global House Price Index showed house prices there rose 12.2 per cent year-on-year to the end of Q2 2013.
Turkey’s rate of house price growth was the sixth highest globally on the index, with the next highest European country being Estonia (8th). The UK was 33rd with growth of 1.4 per cent, while top of the index was Dubai recording 21.7 per cent.
Encouragingly, despite being ranked below Hong Kong and China – 2nd and 4th respectively – for annual growth, the index showed that Turkey’s rate of house price growth for the first six months of this year alone has been higher.
Knight Frank said: “For the first time since 2010, European countries recorded positive annual price growth. However, the average 0.7 per cent uplift over the past 12 months masks a sharp divergence in performance between individual countries, with Turkey the strongest performer, up by 12.2 per cent, and Greece the weakest, down by 11.5 per cent year-on-year… For the fourth consecutive quarter the bottom ten rankings have all been occupied by European countries.”
Istanbul remains a popular spot for international investors, as the city expands, its middle class population grows and demand for residential housing in its suburbs increases. Spot Blue has seen demand for property there increase in recent months, including from Middle Eastern buyers who have been able to own property in Turkey more freely since the country relaxed its reciprocity laws last year.