Increased buying activity in Turkey
By Roxanne James

Turkey's Real Estate Bounces into 2015

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Turkish property sales were at record levels during 2014 consolidating 2 years of growth and propelling the market towards further expansion in 2015.

In recent years there has been a growing trend for investment in Turkey's real estate market, with foreign buyers increasing by 50% in the first quarter of 2014 alone, compared with the same period in 2013.

As a top tourist destination, Turkey's hospitality sector continues to flourish with visitor numbers swelling year-on-year, attracting investment from wealthy foreigners in resort locations.

As seen in other global property markets, growth is being driven by buyers at the high-end seeking luxurious villas and apartments in exclusive areas. While transaction volumes in Turkey declined in 2014, property sales figures increased, reflecting investor preference for big ticket assets in the nation's prime property market.

As a result of increased buying activity in Turkey, prices increased nationally by around 7% in 2014 and as restrictions on foreign buyers are eased; further price inflation is expected this year.

The demographic of investor has changed from those seeking second home or holiday home purchases in apartment blocks to a desire for luxurious designer homes with waterfront access in private and exclusive areas.

2014 also saw increasing investor appetite for buy-to-let properties in Istanbul's up and coming suburbs, capitalising on the city's growing domestic rental market. Construction of new homes located within a commute of the city centre is expected to be stepped-up considerably to respond to heightened demand for good quality rental property.

Regional coastal areas such as Bodrum, Kalkan, Fethiye and Antalya are set to continue their dominance in Turkish real estate sales, particularly with British buyers who generally prefer to purchase in more popular resort locations.

With budget flights from the UK to Turkey increasing in 2015, the property market is likely to experience further uplift as the country's tourism sector continues its expansion. 2015 will see property prices boosted as investors clamber to maximise returns before price inflation alters the fundamentals and reduces margin potential.

 

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