The real estate sector, which has experienced a slow first half due to uncertainties surrounding urban planning projects, is expected to recover in the second half of the year, according to sector representatives.
Arab real estate buyers have invested US $50 million in properties outside of Istanbul, particularly in the areas of Bolu, Bursa and Yalova in the last one and a half months. The trend is expected to continue into the second half as well, according to real estate representative Abdullah Demirhan, seller of these properties. Arab investors, who shifted their vacation spots from Istanbul to provinces around the Sea of Marmara due to the month-long Gezi protests starting in late May, chose large, luxury houses to spend the Muslim holy month of Ramadan. Those provinces are also preferable due to their great shopping opportunities.
The market started the year with low mortgage rates, massive government urbanization projects, and the passing of a law enabling foreigners to buy properties in the country, all of which were expected to stir the market. However, the market was affected by sudden fluctuations in gold prices as well as currency exchange rates, leading to a slowdown in the first half of the year. In addition, the Gezi protests have also dissuaded buyers from the property market.
Sector representatives agree that high interest rates have bothered investors, making them wait out the conditions before making a comeback to the market. But experts predict that the sector will recover in the second half of the year, starting in September, as the government is expected to continue its progress on property purchases by foreigners and reorganize the ongoing urbanization and transportation projects.
The experts also point out that some investors will take advantage of the slow market to make property purchases at discounted prices, therefore sellers should be wary that the timing does not affect their prices.
According to REIDIN.com data, which offers information on real estate markets in emerging economies, Istanbul's districts of Esenyurt, Zeytinburnu, Beylikdüzü, Fatih, Şişli, Küçükçekmece, Kadıköy, Bayrampaşa are among the most preferred locations for property purchases. Looking at the provinces chosen by foreign investors, Antalya led the way in the first half of the year, followed by Istanbul, Muğla, Aydın, Yalova, Mersin, Izmir, Bursa, Ankara and Trabzon.
Meanwhile, a recent analysis by experts suggests that real estate prices in provinces such as Antalya, Adana, Bursa and Kocaeli have increased in the last five years while housing prices in the industrialized provinces of Istanbul, Ankara and Izmir experienced a limited increase.
Source: Today’s Zaman
