Turkish property is slowly but surely climbing its way up the overseas property ladder; making a name and a space for itself as one of the top places in the world to invest in property.
According to the index compiled by The Association of Real Estate Investment Partners (AKA GYODER) in conjunction with Garanti Bank and Reidin, Turkish property prices are currently rising by 10-12 per cent per year, and have been month-in-month out in the index for at least the last 18 months – 2 years.
This has made Turkey one of the most reliable property markets in the world, and this can clearly be seen by its performance in the international indices ran by both Knight Frank and the Global Property Guide.
Looking back to this time (Q3) in 2010 we see Turkey back down in 27th in the Knight Frank table of performance in its Q3 global real estate index. Turkey climbs 3 places in Q4 with price growth of 2.6% for the year, then climbs 5 places to 19th going into 2011 with year on year growth of 3.5% for Q1 according to Knight Frank. Turkey takes 15th place with 4.7% growth in Q2, before moving up to 12th in Q3 with prices growing 6.3%. Turkey ends 2011 with a top 10 spot, with price growth of 7.7% for the year ending Q4 2011 sufficient to make it the 8th fastest growing property market in the world.
The performance in 2011 is surpassed only by that of this year, particularly after the first quarter, when it goes from 7th with 8.7% growth in Q1 to take 3rd in Q2 with the first double digit growth of 10.5%. Then beats this with growth of 11.5% in Q3 to maintain its 3rd position.
Turkey has also done a fair bit of climbing on the Global Property Guide chart during this period, although the growth has not been as meteoric because the Global Property Guide index factors inflation into the equation. Never the less we still see Turkey going from 27th on the table with negative growth of 4.80 at the end of 2010 into the top 10 with almost 5% year on year growth as of Q3 this year.
That is all very good, but arguably even better is the fact that Turkey’s position looks so solid for future growth. Not least because it has just passed a new law allowing nationals from over 190 countries to buy in Turkey who previously couldn’t. This development has already led to smashed sales records, when foreigners bought $1.1 billion worth of Turkish property in May. That was before any of the new nationalities could buy, as European investors attempted to beat the inevitable rush that would come when the new buyers could buy. The fact that the law allows people from the wealthy Arab states surrounding Turkey to buy is expected to have the biggest impact, owing to Turkey’s popularity in the Arab world.
As for reasons for the current popularity, apart from the lifestyle reasons of sun, sea and sand, Turkey is currently one of the fastest growing economies in the world, is politically stable and increasingly economically stable as well. Its economic stability and fiscal responsibility was recently attested to by ratings agency Fitch when the country was awarded its first investment grade rating. If you have a passion for sun, investment, and/or property and money to spend, you will want to give Turkey some serious attention.