Turkish property prices rise in January

Thursday 23rd February 2012

The cost of buying a home in Turkey increased by 0.88% in January compared to the previous month, according to the latest figures supplied by the REIDIN Turkey Residential Property Price Indices.

Homes in Antalya experienced the greatest capital growth, with the average price of a residential unit in the city appreciating by 1.25%.

Istanbul and Izmir also recorded price rises of in excess of 1% month-on-month, while Ankara and Adana saw home prices increase slightly.

According to the data, Kocaeli was the only destination where a fall in home prices was noted, while in Burca the cost of buying a home remained stable.

In addition to rising property values, rental prices also increased in the majority of destinations featured in the property price index.

The greatest hike in rental values was recorded in Izmir, where average rents rose by 1.35% compared to December 2011.

The city of Istanbul remains the most popular location to invest in property, due in part to a chronic shortage of homes.

A growing number of property investors are looking to take advantage of high rental yields and property price growth being generated by the supply-demand imbalance in the Turkish capital.

It is estimated that demand for properties in Istanbul is outstripping supply by around 70,000 residential units each year.