Ernst & Young Ranks Turkey Second Most Attractive Real Estate Market

The "European Real Estate Assets Investment Trend Indicator 2013" report released recently by Ernst & Young has ranked Turkey the second most attractive market for real estate investors.



The report, which was prepared in cooperation with the Economist Intelligence Unit (EIU), was announced in Turkey by Ernst & Young Corporate Finance Department Director Müşfik Cantekinler, who said that, based on research, all of the participants found Turkey an attractive market overall. The report noted that 40 percent found Turkey the second most attractive real estate market. It also highlighted a notable trend: Non-eurozone countries are particularly attractive. Russia, Ukraine and Turkey were ranked as places where office buildings are expected to have a high demand, increasing the potential for higher prices.



Cantekinler noted that their expectations are toward an increase in prices, saying, "It is important to underline that these price increases will only be at prestigious locations." However, the report also showed that investors are interested in real estate purchases across all budgets. Eighty percent of respondents expressed that they believe that the volume of real estate transactions would increase while 70 percent said foreign investments would become more significant as transactions increase.



Looking at the real estate types that investors are interested in, the study found that the majority was interested in investing in office buildings and retail real estate, but it was unclear where the most attractive locations for retail investment seekers were. Evaluating this result, Alp Şen, Ernst & Young Turkey senior director responsible for real estate transactions, stated that "interest in retail real investments is most likely to continue independent of specific provinces or zones, which means that the retail real estate market in Turkey has become investment friendly."



Also noting that urban renewal projects are predicted to bring a wave of both domestic and foreign investors, Şen said that such a trend would further contribute positively to the housing market. "In addition, as the report showed that 60 percent of respondents in Turkey indicated that 'green' buildings would be a major factor in their investment decisions, many international real estate investors will seek green buildings when searching for potential investments," Şen added.



(Cihan/Today's Zaman)