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Mazaya Monthly Real Estate Report -
Week 2 - November 2015
Economists predict that despite an
inflation rate that was as high as
seven percent in the third quarter,
the Turkish economy is on course to
record growth of some three percent
in 2015 - music to the ears of investors.
Should Turkey now be able to join the
EU, as many commentators believe is
possible, we predict the country will
see very significant inflows of direct
investment. A perfect time, then, for
the country’s banks to reduce interest
on home loans by 1.1 percent, as they
have recently done, to make investing
in real estate even more attractive.
We believe further reductions are
in the offing – it is worth pointing
out that Turkish banks have issued
loans totalling TL129.5bn this year,
an increase of 13.1 percent on 2014.
Al-Mazaya Report believes the election
result was the right one for Turkey,
paving the way for neededmodernisation
and reform in the fields of exchange rate
competition, financial market trading,
publicdebtmanagementandoptimisation
of the country’s credit rating. For
example, public debt has been reduced
by TL48bn, and government bonds have
performed strongly recently. Over the
coming weeks and months we expect
to see the economy perform strongly as
a direct result of the election result and
the people’s vote for stability. These are
positive indicators for risk-averse global
investors – especially the cancelling
of the prospect of political uncertainty
seen before the election. We expect to
see real estate benefit considerably.
Al-Mazaya Report believes the Turkish
real estate story is an exciting one for
investors, and has the potential to be
a long-lasting value creator, especially
given good management of the sector
by government. In Q3 this year we saw
real estate in Turkey appreciate by
eighteen percent, implying the good
news has spread. Investors, then,
should get in now, while they can.