Istanbul Property Prices 2014

According to the central bank report, Istanbul property prices increased by 20 percent compared to the last year. 

The Data shows that THPI increased by 1.62 percent on a monthly basis and reached to 157.92 in June. Compared to the same month of the last year, in June 2014, THPI increased by 13.99 percent and by 4.42 percent in real terms. While house prices per square meter was 1,239.07 TL in 2013 June, and it reached to 1,405.43 TL in May of this year. 

New Housing Price Index (NHPI), that is calculated by analyzing valuation reports of newly built houses in last two years in 37 provinces of Turkey, rose by 1.54 percent in 2014 June compared to the previous month. Compared to the same month of the last year, in June 2014, index increased by 13.59 percent and by 4.06 percent in real terms.

For Turkey’s three large cities, house price indices increased by 2.35 percent, 0.76 percent and 1.69 percent in Istanbul, Ankara and Izmir, respectively, in 2014 June compared to the previous month. Compared to same month of the last year, index values rose by 21.38 percent, 10.27 percent and 12.95 percent in Istanbul, Ankara and Izmir, respectively.

Istanbul a new London for Arab property buyers

Russian and Middle Eastern investors are being lured to Istanbul to buy luxury real estate now that property laws have been relaxed, the economy is strong, prices are relatively cheap in comparison and Turkey is viewed as a safe haven

A new wave of wealthy investors from the Middle East and Russia is increasingly eyeing luxury developments in bustling Istanbul, lured by a relaxation in property laws, relatively cheap prices and a thriving economy.

A revision to Turkish property laws, announced in May, abolishes a reciprocity rule that only allowed investors from countries where Turkish nationals could buy real estate to buy property in Turkey. The bill also allows the government to double the amount of land foreigners can buy in Turkey to 600,000 square meters, although for now a limit of 300,000 square meters remains.

Turkish property prices marked the third-fastest growth in the world in the year to June, behind Brazil and Austria, surging more than 10 percent and outpacing Russia and Hong Kong, according to the Knight Frank Global House Price Index.

Rising prices and the prospect of relaxed rules for foreigners are fueling lofty ambitions in Turkish property circles for Istanbul to match the rapid rise of other newly fashionable property hubs such as Moscow, where prime real estate prices now rival London and New York.

Two-year urban plan kicks off in Turkey

Most of the urban transformation projects in Turkey are to be completed in two years, despite the 20-year plan forecast, according to the City and Urban Planning Ministry. Currently. Buildings at the highest risk in the event of an earthquake are currently being identified.

“We are endeavoring to realize the transformation of hovels, illegal, unlicensed buildings and those without occupancy permits. We will let the citizens know that we are determined to do this. Then the transformation will be completed in five-year, seven-year, 10-year, 12-year, 15-year and 20-year plans,” said City and Urban Planning Minister Erdoğan Bayraktar.  Istanbul Real Estate

Owners of buildings have a 15-day period to lodge an objection with the ministry against demolition decisions.

The ministry will establish publicity offices to explain the law to the citizens in the Istanbul, İzmir and Bursa provinces. Bayraktar said more offices may be established in the other areas where urban transformation projects will take place.

Premier Investment Funds are waiting for the Reciprocity Law in Turkey

The law of reciprocity will not only accelerate the housing sales but also other foreign investments in this aspect in Turkey. The Minister Bayraktar said the law would certainly pass within 2 months and also added that the foreign funds are also expecting the emergence of the law.

The unknown points of reciprocity law which will resource of annual 5-10 billion dollars input became clear.

The Environment and Planning Minister Erdogan Bayraktar answered questions on when the law will pass and what restrictions will be.

Bayraktar said that reciprocity law, firstly taken up the Council of Ministers as a draft, became now a draft bill and it will take from 1.5 to 2 months to pass (definitely).

Ratios Were Determined in Each Province

Home Sales Rise in Turkey

The consumers are again towards the most reliable source of investment ^^ Real Estate ^^ because of the rumors of crisis in World economy.

Home sales in the second quarter of 2011 increased by 17.8 percent compared to the previous quarter, sales is gaining momentum outside of the three largest provinces. While there was a limited increase at 1.2 percent in new housing prices in Turkey , the housing loan demand continued to expand.

In the second quarter the demand for housing loans increased

The use of housing loans in the second quarter of 2011 reached 66.7 billion and has continued to expand. However, as a result of decisions taken by the Central Bank, together with rising interest rates in July and August and September, it's been seen a slowdown in housing loan demand and it drew attention to the decline at 9,6 percent in the share of housing loans in total loans.


Housing loan installments lengthened to reduce maturities

While 9.38 billion dolars mortgage loans is being used in the second quarter of the year, according to the previous period, it was found that the credit users demanded for credit more than 3,000 TL  average per capita.

As the housing loan is used at average 75.000 TL per capita, it's seen the consumers prefer longer housing loan installment payments to reduce the maturity of thirty days because of increased interest rates.

While the use of 10-year-term mortgage loan is expanded,  It is noteworthy that the share of 10-15 year maturities increased in the third quarter.

Turkey will grow more than Europe and United States in 2012

Organization for Economic Cooperation and Development (OECD) announced that Turkey will grow 3 percent in 2012 at a rate higher than Europe and the United States.


The report states that while the  three major EU countries such as Germany, France and Italy might have a mild recession predicted , only 0.2 percent economic growth is estimated for Euro Zone. The OECD states in the report that the European Central Bank needs to take a more active role in eliminating the crisis and the strengthening of the euro rescue fund.
The report of economic growth forecast for the United States in 2012  has been revised from 3.1 percent to 2 percent.

Historical Pera Palas Hotel again changing hands

Historical Pera Palas Hotel in Istanbul where Mustafa Kemal Ataturk made ​​the work of the War of Independence, hosted the famous names from Agatha Christie known the world-famous author with the detective novels to Queen II Elizabeth , Pierre Loti, Jacqueline Kennedy and Ernst Hemingway has been taken by Demet Sabanci Cetindogan who is the partner of Demsa holding the sole rights of many prestigeous international brands in Turkey.

Restored and re-opened in 2010 with the participation of Prime Minister Recep Tayyip Erdogan, Pera Palace Hotel owned by Ihsan Kalkavan since 2005 shook hands with Demet Sabanci Cetindogan.