Turkey’s property market records highest growth in Europe in 2014-15

Average house prices in Turkey rose 18.6 per cent in the 12 months to the end of March 2015, according to the latest Knight Frank House Price Index, making Turkish property the best performing of all European markets.

Turkey recorded the second highest growth of all 56 countries tracked in the Index, which analyses residential prices up to the end of Q1 2015. Hong Kong leads the rankings, just ahead of Turkey with annual growth of 18.7 per cent. In third place is Ireland (16.8 per cent), followed by Luxembourg (12.1 per cent) and Estonia (11 per cent). Other European countries in the top ten include Iceland, Sweden and Norway.

Looking closer at the Index, house price growth in Turkey in the six months to the end of March was 9 per cent and 5.2 per cent over the first quarter of 2015.

Knight Frank analyst Kate Everett-Allen notes that “a two-speed Europe is increasingly evident”, with slow performers including Cyprus, Greece, France and Italy, while Turkey heads up the strongest performers in today’s market.

Overall, house prices across the whole of the Index increased marginally by 0.3 per cent in the 12 months to end of March, highlighting how well Turkey’s market has performed.

Foreign interest in Turkish property, in particular from the Gulf nations, is expected to rise in coming weeks, when Turkey represents the largest international pavilion at the three-day Cityscape Global event, taking place at the Dubai World Trade Centre from 8th-10th September. Around 50 exhibitors will be promoting Turkish property and development investment opportunities.