Turkey is an excellent country to invest in; the property market in Turkey is still buoyant. The truth is property prices continue to rise although at a slower rate than in 2016. During the year to July 2017, Turkey’s nationwide house price index increased by 11.6%, according to figures released by the Central Bank of the Republic of Turkey (CBRT). When adjusted for inflation, house prices rose 1.65%, less than the 4.76% inflation-adjusted year-on-year price rise during the same period last year.
House prices
Prices of property in Turkey have risen continuously, largely due to the rising middle class gaining access to mortgage finance for the first time, reports Knight Frank’s head of international residential research. In 2016 property price rises started to slow due to economic and political turmoil: terrorist attacks, political uncertainty among others. Istanbul’s prime market suffered badly that year. Despite the recent price slowdown, in the long-term, Turkey is likely to remain on the radar of investors, given the underlying market fundamentals of strong demand set against low supply.
House purchases
Property purchases have continued to rise, with 17% and 25% year-on-year increases in September and October respectively. This has been largely fuelled by local demand, which is set to increase next year. Backed by President Erdogan, commercial banks have been offering cheaper loans, which have instigated local property demand. 2016 has seen a 71% increase in mortgaged house sales, accounting for a third of all sales of villas and apartments in Turkey, and this trend is likely to continue through 2017.
Foreign investment
Foreign investors are still buying and the top foreign buyers are Saudi Arabians who topped the list for most foreign property sales and they bought the grand total of 528 properties in Turkey during the month of October in 2017. In second place were the Iraqis who bought 344 units, third is the Azerbaijanis bought a total of 278 properties, fourth saw the Kuwaitis investing in 154 units, and in fifth place the Russians bought 125 Turkish homes during October, all the data has been supplied by (TÜİK).
Where are buyers investing?
Favourite is Istanbul; it is a hot spot for investment and continues to prove popular with 1,321 property sales to foreign buyers. In second place is Antalya with 465 units sold and in the northwestern province of Bursa 121 units were sold and Yalova had 108 sales. The Aegean province of Aydin saw 93 properties sold.
Brits buying in Turkey
The British have taken Turkey to their hearts and according to statistics over 32,000 British nationals have bought a second home whether it is for holidays or investment purposes in Turkey. To date, the British own more homes in Turkey than any other foreign property buyer. Why? It’s simple really the weather has a lot to do with it with 300 days of sunshine per year and the mild winters are a major attraction, couple this with affordable property and you are on to a sure winner.
Turkey remains the top country for most buyers it’s a great investment!
1 comment
[…] Izmir, often known as the “Pearl of the Aegean,” is Turkey’s third-largest city and a magnet for those wanting real estate in Izmir. Along with the surrounding coastal resorts, it forms a considerable section of western Turkey, also known as the Aegean. It has been popular with Turks as a vacation and retirement destination for decades. Its popularity has grown as more Turks move away from Istanbul, Turkey’s leading metropolis. This includes foreigners, many of whom have relocated to Izmir to live, work, and buy a home. Is buying property in Turkey a good investment? […]