Turkey is the leader in the global package when it comes to rising real estate prices.
The latest global house price index Knight Frank showed that real estate prices in Turkey rose 27% in the third quarter of this year. However, inflation “realistically” reduced that figure to 13%.
The report analyzes residential property prices in 56 countries and territories. This is the third consecutive quarter in which Turkey is at the top of the rankings.
New Zealand jumped to second place, from 11th place in the last quarter.
Turkey experienced a sharp rise in demand for housing following anti-coronavirus measures, with transactions jumping 41% from a year earlier, Knight Frank reported. The market has been further boosted by easing mortgage lending requirements, designed to increase Turkish consumption, a way to alleviate the infected economy.
Turkish real estate agency director Cameron Deggin said the report is linked to his experience in recent months, as domestic interest in Turkish real estate has grown.
“Lending is cheap, so it’s easier than ever to move up the housing ladder, and that has brought young, professional Turks to the forefront of the domestic market.”
Earlier this year, sales of mortgage-financed apartments jumped 900% year-on-year to 131,000 units in July. This sale accounted for six out of 10 total property sales, and in the first seven months of this year, nearly 854,000 homes were sold.
In Istanbul, Turkey’s largest city, real estate prices rose 20% year-on-year until July, while those in Ankara rose 26%.
In 56 countries reviewed by Knight Frank, prices rose 4.5 percent in the third quarter. This growth has remained stable since 2017. However, the percentage of markets that record falling prices is growing year by year, the report said. This indicator is up to 16% in the third quarter, compared to 2% in the first quarter of 2020.
Spain, Ireland, India and Hong Kong are among the countries with the weakest year-on-year price growth, the report said.