Turkey’s property market still strong as total homes sold in Turkey rise 24.5% in 2009

Property Investors looking to buy property in Turkey will be pleased with the news that 2009 showed significant activity in Turkey’s property market. According to the Ekonomist (Turkeys weekly economy magazine), 116,000 units of homes were sold during the final quarter of 2009 in Turkey, showing a 25.2 percent increase compared to same period a year earlier.

The total number of homes in Turkey that were sold in 2009 was 532,000, compared to 427,000 in 2008, with an increase of 24.5 percent. Interest rate cuts and tax cut implementations were factors seen to have boosted property sales in Turkey.

The Turkish economy has been showing significant resiliance to the economic challenges with the global downturn. With a constant stream of foreign investors doubled with a domestic shortfaul in housing supply, Turkey’s real estate market is seeing prices growing far more dramatically than expected. Turkey became the first country in Central and Eastern Europe to introduce a sales index for real estate (REMI) in 2002. This national index for the real estate sector is considered to be a solid indicator of property investment activity and development in the country.

Factors that have been seen to postivitely affect the progress of the Turkish real estate market have included;
significant infrastructural improvement, boost in tourism, the low cost of living and the influx of foreign investment.

There has been a swathe of new and luxury residential developments and resorts on the southern coast in cities such as Antalya and the neighbouring resorts of Belek, Side, Alanya, Kemer, Kas, Kalkan and Fethiye.Antalya is considered one of the world’s most important tourism centers and is expected to increase its annual tourist numbers from 9 million to 15 million by 2013.

Most surprisingly, property in Turkey is still good value compared to other popular European countries. Although EU accession is a strong possibility the advantages of being outside of the Eurozone, has meant that Turkey can sustain a competitive advantage in the property markets. Yet smart investors have much to look forward too as those who bought 2 years ago have already seen the value of their property increase dramatically and it is predicted that prices will continue to rise into the future. According to National Statistic Institute of Turkey, the quarterly real estate prices growth rate is 12,5%, and yet, Antalya is the most expensive real estate market with 2,8% increase followed by the towns of Belek (23,7%), and Kemer (16,8%).

Rising tourism is also showing strong signals that letting a property in Turkey is likely to reap good returns. With 300 days of sunshine in regions like Antalya, the rental return is currently between 6-12%. The shortfall in housing supply and increased demand for properties to rent in Turkey is also fueling good returns from the domestic market on a longer term for those who choose not to rely on letting a holiday property in Turkey during peak seasons.

Combine all these factors and buying property in Turkey seems an attractive prospect. The prices of the properties in Turkey are still amongst the lowest in Europe and with greater value for the fantastic locations that are still available. It is predicted that property prices in Turkey will continue to rise around 10-15% per year.