Turkey's property market in overdrive as agency launches stock campaign
More diverse international investors in Turkey - combined with growing demand from a wealthier population - have led to an increase in property purchases in October, and, in some areas, a tighter supply of stock. This is according to UK based Turkish property agency Spot Blue International Property.
The prominence of Gulf and Russian investors in today’s Turkish property market, which is already popular with British and European buyers, means demand for quality second homes in coastal resorts, as well as investment property in Istanbul, is on the rise.
Increasing home ownership levels – both second homes and primary residences - among Turkish people are also boosting the market. This has led Spot Blue to launch a drive to find more properties to sell and expand the listings of homes for sale on its website, www.spotblue.com.
“We’re especially keen to boost our portfolio of mid-to-upmarket properties in the popular second home resorts of Bodrum, Kalkan, Alanya and Fethiye,” said director at Spot Blue Julian Walker. “Meanwhile, Istanbul is currently the buzz word among international investors, especially those from the Gulf where Turkey has recently held centre stage at the Cityscape Dubai show, and we’ve had steady business there in recent months.
‘’So, we’re looking to work with new, reputable developers who have solid product in desirable parts of the city, which we can market to our international client base.”
Unsurprisingly, strong interest continues to drive house price growth in Turkey. Statistics released in October by the Central Bank of the Republic of Turkey show that from January to July this year residential prices rose month-on-month by an average of 1.23%, with the highest monthly increase being recorded in February (1.38%) and lowest in January (1.13%).
Year on year house price growth has been even more significant, increasing consistently each month since April when it was 12.09%, to reach 12.9% in July. In Istanbul, property prices for new projects on the European side of the city grew by 1.48% month-on-month in August, while on the Asian side this figure was 2%, according to the REIDIN-GYODER New Home Price Index.
“Turkey is a liquid market on the rise,” said Walker. “This contrasts heavily with the over-supplied, depressed state of other popular destinations in southern Europe, where many vendors asking unrealistic prices have had to play a painful game of catch-up when they do decide to drop their price. With this in mind, right now at Spot Blue we’d welcome new stock that ticks the right boxes.”
Reassuringly for property buyers, Walker said Spot Blue was one of a few Turkish property firms in the UK that runs due diligence reports on developers before deciding to work with them. Spot Blue’s company reports check not only that a developer is legally registered, but also when it was registered, who its directors – past and present – and senior staff are, its development history and completion status, and its annual profits.