Turkish re-election to maintain property market growth
Photo credit: Bryan_T
Indeed, statistics highlighted by Turkey property consultants Universal21.com suggests that international investors remain undeterred by recent political unrest and the sliding value of the Lira.
The property market in Istanbul saw a greater increase in prices for new homes in February 2014 than in February 2013, according to the agency's analysts.
“The Istanbul property market continued to post positive growth in the early months of this year even as mortgage rates climbed. This shows that people are still buying in Turkey and as we have seen with some recent high profile hotel projects, international companies and investors are too," comments Adil Yaman Investment, Director of Universal21.com.
The re-election of Erdogan could help that growth to continue, argues Spot Blue International Property.
“Continuity is important for helping Turkey to move beyond its status as a mature emerging market,” says the agency's director, Julian Walker.
“Erdogan, who first became prime minister in 2003, and his party can now persist with schemes aimed at attracting foreign investment and advancing the country on the international economic stage."
Walker highlights Erdogan's commitment to driving key infrastructure projects around Istanbul, from the Marmaray rail tunnel and the construction of the city's third airport.
He also "continues to be instrumental" in opening up Turkey's real estate market following the introduction of the revised reciprocal law in 2012, as well as controlling government spending: in May 2013 Turkey paid off its final $412 million instalment of debt to the International Monetary Fund (IMF), after a 52-year IMF loan agreement, making Turkey free of any foreign debt for the first time in more than a century.
"Turkey has grown into a major tourist international destination under Erdogan's rule," he adds. "The country welcomed a record 34.9 million tourists in 2013, a year-on-year rise of 10 per cent."
Indeed, rising tourist numbers have had a positive effect on the country's economy, agrees Universal21.com, with 3.27 million Arab tourists flocking to Turkey in 2013, 9 per cent up on the previous year.
To cater for this rise, there are now 75 hotel projects in the pipeline, according to the Wall Street Journal. One of them, Raffles Istanbul, is scheduled to open its doors in July and will feature one of Europe's most expensive hotel rooms: a penthouse with the pricey cost of €20,000 a night.
“Increase construction activity will put upward pressure on prices particularly in popular central areas of the city," comments to Monica Anca, Co-Director of Universal21. “As competition remains stiff for available land in central areas, this will inevitably increase the prices of new properties in the suburbs."
Universal21.com suggests that now is the time to buy before prices climb - and the Lira does the same.