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"The latest Private Equity Confidence Survey (PECS) from Deloitte, which surveyed 50 investors in Turkish companies in September, has concluded that investor confidence in Turkey is back to 2007 levels.
The survey asks investors about their outlook on the economy, deal activity and availability of funding for the coming six months. Because it asks only active investors for predictions over just six months, it is a very good indicator of the flow of investment in the short term, and in Turkey it indicates that investment is set to increase.
Because many of the responses in the current report are similar to the responses received in the survey in 1h 2007, the report said: "Thus we might conclude that investors' confidence in Turkey has now fully recovered from the problems of the global recession," said the report.
The report also said the Istanbul Stock Exchange ISE-100 index was recently testing new highs, just above its previous peak in late 2007.
"In Turkey we do not see the fears prevalent in some Western European countries that lingering weaknesses in the banking sector will hinder lending and therefore recovery," the report said. "The banks appear to be in robust good health. Government finances are not under particular strain. The contrast with the weaker members of the eurozone is dramatic."
According to Aydin Cakir, director of New Home in Turkey, we don't need reports like this to tell us investment in Turkey is increasing, he said:
"It is always nice to hear the findings of such surveys, which are literally finger-on-the-pulse of private equity investment (think the Den) in Turkey, but in honesty we can see that investment is on the increase from the constant news reports of massive investment. This week alone we have seen a 1.4 million dollar investment in the creation of massive hydro-electric power plants, and a new plant by Foxconn opening in Antalya."
According to Cakir, the flow of investment is massively beneficial to the Turkey property market, he said:
"Rising investment like this is good for the property market in many ways. For a start it increases the number of people coming into Turkey to seek venture capital and start businesses in the high-growth environment. It also helps businesses to grow, which provides employment and increases demand for housing."
He added: "The new plant for example, will massively increase demand for property in Antalya, as the company will bring in members of staff from outside, and increase affluence in the local community."
