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"2011 is set to be one of the "golden years" for Turkish property, according to Turgay Tanes, director of the Turkish Real Estate Platform AKA GYODER.
According to Tanes, GYODER is forecasting a 10% rise in construction permits, a 20% rise in mortgage credit, an 8-10% growth in real estate investment and steady growth in prices and rents for the year ahead. The mortgage growth will put Turkey's mortgage market up to 68 billion Turkish Liras according to Tanes.
Tanes also attempted to quash fears over whether Turkey's growth is turning into a real estate bubble, he said that Turkey's real estate sector remains one of the safest markets in the world because asset prices are acceptable and financial institutions responsible.
Tanes said the expected rise in asset prices and rents should not be called an “asset bubble,” because the Turkish real estate sector is growing in real terms – compared to European markets. “Turkey should take the necessary measures and closely watch the international real estate market as well as maintain the growth trend in 2011.”
According to Tanes the growth being forecast is already underway. He said that that the real estate sector has already grown 8.3% this year, and if its current growth rate persists will have grown 24.6% when 2011 closes.
Finally, Tanes called on the government to remove the red tape surrounding foreign purchases, and make it more easy for non-residents to buy property in Turkey.
“The Turkish authorities should immediately solve the issues that bother foreign investors,” he said.
