Turkey's property prices are growing faster than anywhere in the world

Istanbul, Turkey

Turkey is leading the global pack when it comes to property price growth.

Knight Frank's latest Global House Price Index showed that property prices in Turkey grew 27% in the third quarter of this year. However, inflation brought that figure down to 13% in "real terms" the report said.

The report analysed residential property prices in 56 countries and territories. It marks the third consecutive quarter that Turkey has topped the ranking. 

New Zealand jumped to second place, from 11th place last quarter.

Turkey has experienced a sharp increase in demand for homes following coronavirus measures, with transactions jumping 41% from a year earlier, Knight Frank reported. The market was further boosted by the easing of mortgage lending requirements, designed to get Turkish people spending, a way to mitigate a covid-hit economy.

Property Turkey director Cameron Deggin said the report chimed with his experience over the last few months, as domestic interest in Turkish properties surged.

"Lending is cheap, so it's easier than ever to get on the housing ladder, and this has brought young, professional Turks to the forefront of the domestic market." 

Earlier this year, mortgage-financed home sales leaped by 900% year on year to 131,000 units in July. These sales accounted for six-in10 of all property sales, and in the first seven months of the year, almost 854,000 homes were sold.

In Istanbul, the Turkey's largest city, property prices rose by 20% year on year to July, while those in Ankara rose by 26%.

Across the 56 countries Knight Frank examined, prices rose by 4.5 percent in the third quarter. This growth has remained stable since 2017. However, the percentage of markets registering a fall in prices year-on-year is climbing, the report outlined. That metric 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.


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