Foreign sales of turkish property surge 28pc

Photo: Adisorn R

Foreign sales of Turkish property have surged 28 per cent in the past year, according to new figures.

Official data from the Turkish Statistical Institute shows that transactions totalled 95,021 in February 2015, up 15 per cent from February 2014. Overseas sales have climbed even higher, with the number of purchases made by foreign buyers rising 28 per cent year-on-year, from 1,071 to 1,369.

Istanbul enjoyed the biggest share of activity, accounting for almost 1 in 5 sales (18.6 per cent). Indeed, the city's booming population has fuelled demand for rented accommodation, which has also driven rents for furnished apartments up by 30 to 40 per cent in the past two years.

466 foreign sales took place in Istanbul in February, ahead of resort favourite Antalya (356), Bursa (106), Yalova (77), Mugla (75) and Aydin (65).

The figures follow Istanbul's ranking as the 20th most important market in PWC's Emerging Trends in Real Estate Europe 2015 report, highlighting the city as one to watch for investors. The ranking marks a slight fall from the previous year, thanks to political tensions in nearby countries. Standard and Poor's also warns that foreign capital flow into the country could be impacted by the possible rate hike by the US Federal Reserve Bank.

Nonetheless, S&P's report notes that Turkey's residential market grew more than 16 per cent in nominal terms.

"The market softened temporarily in the first half of 2014 amid slowing economic growth and interest rate hikes, but rebounded strongly as monetary conditions loosened and confidence returned," Global Property Guide quotes the report as saying. "We expect domestic demand to rebound in 2015."

It certainly has tourism on its side: in Trip Advisor's 2015 Travellers' Choice Awards, based on feedback from the site's travellers, Turkey’s largest city came out on top.

Adil Yaman, Director of property agency Universal21, highlights the neighbourhood of Beylikdüzü as a hotspot to watch, thanks to its position on the Coast, with the city's best shopping centres, as well as five universities: "It is clear to see why the district has become synonymous with the upper middle-classes, and in turn with amazing buy-to-let potential."

Estate agency Spot Blue confirms that Beylikduzu is a neighbourhood of note, saying that the Turkish property market is "gaining momentum".

Another sector that is also strengthening is student property, notes PwC's report.

"Growth in this sector is driven by demand for higher education as a result of Turkey'€™s young and growing population and increasing household incomes."

Indeed, Dubai-based private equity firm the Abraaj Group has already bought a number of properties in the past year and a half, including those in student hubs Ortakoy and Buyucekmece.

"It'€™s still a small market but student housing is becoming popular," adds the report. "There are more students now in Istanbul than in London."