subject: Turkey Property Remains Bouyant [print this page] Turkish GDP was 10.3% higher year on year in the first quarter of this year and 11.4% higher in the second quarter. This, following Turkey's emergence from a year-long recession with a 6% growth in Q4, has made Turkey the fastest growing economy in the OECD, up 11% year on year over 1H 2010.
The construction sector topped growth figures in the second quarter, with an incredible growth of 21%. General economic growth is good enough, increasing foreign interest and local demand, but construction growth is often an even better sign; showing that the property market is flourishing in the growth, and not just benefiting from it.
11% is becoming a common number for Turkey; according to the tourism ministry's latest statement, visitor numbers are also up 11%+ over the first half of this year, compared to last year.
If all this growth and positivity will increase foreign interest in Turkish property, then low interest rates and high liquidity will add fuel to the fire, by giving foreigners (as well as locals) continued access to mortgage finance.
When Turkey was hit by the financial crisis, as well as a sense of anxiety, the Turkish people were also struck with de ja vu. Turkey had a financial crisis of its own in 2001, at which point the banking system, which was at the heart of the crisis, was heavily reformed to protect against future crises. Because of this, the Turkish banking system was more resilient, and has kept lending loose. This is a large part of the reason for Turkey's exceptional rebound.
