Turkey Leads Europe in House Price Appreciation
Turkey kept its leading position in Europe for highest appreciation rate of house prices in the first nine months of 2013.
The average value of houses rose by 12.5 percent in the first three quarters compared to the same period of the previous year. Istanbul’s increase rate is 17%, even higher than Turkish property price increase.
A similar report released last week by the Turkish Central Bank showed Turkey to be the country with the largest increase in house prices in Europe as of 2012.
Turkey established the sixth place in the world. Dubai ranks first on the world list with 28.5 percent for prices of residential buildings. China comes second with 21.6 percent. Hong Kong homeowners saw their properties gain in value by 16.1 percent, whereas house prices climbed by 15.4 percent in Taiwan, despite the ambiguities of a persistent political crisis in the country. Another Far Eastern country, Indonesia, occupied fifth place on the list with 13.5 percent. Brazil was on the heels of Turkey with 11.9 percent.
Istanbul property index would get the third place following China and Dubai. One important point shouldn’t be missed though; Turkish property market is always steady compared to Dubai Market’s up and downs. Stability is an important issue in Turkish and Istanbul Property Markets.
Reidin, a well-known company in the real estate research business, verifies the Global House Price Index results. According to a recent study by Reidin, house prices in Turkey rose by 13.32 percent in the 12 months from November 2012 to November 2013. The largest increase was seen in İstanbul with 17.06 percent, and the lowest rate of increase was registered in Kocaeli, Reidin found. İstanbul was followed by Adana (12.06 percent) and İzmir (10.51 percent).
Again, another Reidin study, this time taking high-end branded project developments into consideration, found that house prices rose across by Turkey 14.75 percent. İstanbul’s European side enjoyed the highest appreciation rate with 10.78 percent, and İstanbul’s Asian side came in second in the Reidin study with 9.01 percent.
Ongoing urban transformation in Turkey is an important upward factor for property prices. Especially in Istanbul, urban transformation is intensely taking place and will keep the construction sector alive for tens of years.