Turkey retained its leading position in Europe in terms of the rate of appreciation of house prices in the first nine months of 2013, the Global House Price Index of real estate consulting company Knight Frank has shown.
The average value of houses rose by 12.5 percent in the first three quarters compared to the same period of the previous year. The company also estimated, given the recent hikes in construction costs, increases of between 10 to 15 percent this year, too.
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 2013
Luxury Property Turkey CEO Darren Edwards believes home prices will most likely rise by around 10 percent this year and sees a continuation of the rise as inevitable. “2014 is a year in which the currency will stabilize along with political and economic stability, more and more foreign investors are taking advantage of the Turkish Lira rate and negotiating their deals in the local currency.”
Turkey is struggling with a political crisis after an investigation into corruption, implicating government members and their inner circles, became public on Dec. 17, 2013. Darren also believes that costs are driven by an increases in interest rates, adding, however, that both domestic consumers and foreign investors can face up to this increase if they sense a return to stability.
By Darren Edwards