Turkish election win welcomed by property industry

The results of Turkey's election have been welcomed by the property industry this week.

The ruling AKP party, led by Turkish President Recep Tayyip Erdogan, lost its majority in June this year, but Prime Minister Ahmet Davutoglu failed to form a coalition with other opposition parties. As a result, a snap election was called on Sunday 1st November, resulting in the majority of votes going to Erdogan's party.

There have been some criticisms of the way in which the voting was carried out, with some arguing that Edrogan's party used both fear and violence to win its support, as well as reportedly arresting activists and stifling press freedom.

"This campaign was unfair and characterised by too much violence and fear," said Andreas Gross of the Parliamentary Assembly of the Council of Europe (Pace). Erdogan has responded by asking for international leaders and pundits to respect the election's result.

But the real estate world is pleased with the result, which is thought to restore stability to the country and its economy. Indeed, after a period of unrest and a volatile lira, the election of Erdogan's party means "business as usual", says estate agent Universal 21.

"This was a very difficult period for the country as there was no government in place and people’s confidence had begun to wane. The positive reaction of the stock market and the huge jump in the value of the Turkish lira is proof of the reaction of the market’s confidence in the AK Party regaining the mantle of Government," Philip Skorochod, Founder of Universal 21, tells TheMoveChannel.com.

"The past eleven years has shown them to be extremely capable of steering the country’s economy in the right direction; Turkey has been a shining star in the last decade throughout the world."

Indeed, JLL identified the city as part of a group named 'The Aspiring' in a recent European Regional Economic Growth Index, a report that identifies regions within Europe with the best economic prospects. Pointing to Istanbul's growing GDP, employment levels and population, the city ranked third in the listings, and its increasing levels of middle class inhabitants also set it apart as a top investment prospect.

According to the latest Economist House Price Index, meanwhile, Turkey has enjoyed the second-strongest house price growth in the past year, with values up 18.8 per cent, behind Hong Kong's 20.8 per cent.

"The people objected to the powers the President was seeking in the previous election and made the government aware of their feelings, however, we are so glad that common sense has now prevailed and for our company it was fantastic news," adds Philip. "There [is] a huge sigh of relief around the business community."