Turkey’s robust construction sector is fueling double-digit GDP growth, attracting European property investors and challenging developers to keep up with demand. Istanbul is a favorite destination for domestic and foreign buyers, while oceanfront resorts and cultural riches make Turkey a tourism and vacation home mecca. See the following article from Property Wire for more on this.
Construction is leading the way to economic recovery in Turkey which in turn is set to boost real estate activity, according to experts.
The latest figures from the Turkish Statistics Institute shows that the Turkish economy saw GDP growth of 10.3% in the second quarter of the year, making it the world’s third fastest growing economy for the April June quarter, behind Singapore and Taiwan.
Overall for the first half of the year growth has been reported at 11% which has outperformed economic forecasts and construction has led the way in the recovery.
The figures also show that the Turkish construction sector posted a 21.9% growth in the second quarter of 2010 followed by fisheries and manufacturing, 15.7% and 15.4% respectively.
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These statistics back up the confidence in the Turkish property industry, according to leading real estate agents Spot Blue which is receiving a record number of inquiries this year from British investors looking to buy both holiday homes and properties for investment in order to benefit from the inevitable property price rises to come after economic recovery from the global finance crisis.
‘The opinions from those at the heart of the construction sector in Turkey are very positive and there is a great sense of self belief in Turkey and its economic outlook for the country post global downturn,’ said David Walker, who is vice chairman (UK) of the Board for the Turkish British Chamber of Commerce and Industry and director of Spot Blue.
‘I have to say I personally believe this has always been the case. Optimism has remained high in Turkey and this, coupled with hard work and the steady decline in unemployment, has meant that this faith has translated internationally. We are seeing greater numbers of Europeans seeking to invest in Turkey’s growing economy and property is one of the most popular means of doing so, offering twofold benefits for purchasers as an investment into a growth market and a tangible asset that buyers can enjoy personally too,’ he explained.
Over 32,000 Brits are now reported to own property in Turkey according to the Turkish General Directorate of Land Registry. The coastal resorts of the Mediterranean and Aegean Seas have attracted a steady flow of interest, however, it is the largest city in Turkey and the European Capital of Cultural 2010, Istanbul, that is currently receiving an influx of investors.
‘Istanbul offers an excellent investment opportunity, attracting an increasing domestic market looking for property rentals as well as international visitors. These factors combined with the Turkish economic growth means that developers are struggling to meet demand from buyers,’ said Julian Walker, managing director of Spot Blue.
‘Sales of properties are strong considering the global economic climate and more developments will be coming to the market to suit the cosmopolitan communities. Studio to four bedroom apartments are available, all with modern interiors and high specification finishes, and it tends to be the European side of the city that is favored at present,’ he added.
Prime attractions such as the Bosphorous Strait encompassing the natural harbor, the Golden Horn, are helping to propel Turkey into the sights of tourists as well as buyers and Istanbul boasts a rich cultural and social scene, he believes.
‘The International Film festival held here annually is one of the most important in Europe and on top of these high profile events, activities such as opera, ballet, pop concerts, art displays and museum exhibitions continue throughout the year,’ said Walker.
This article has been republished from Property Wire. You can also view this article at Property Wire, an international real estate news site.