Normally such a dramatic slowdown in economic growth might be cause for alarm, however, much of the slowdown was down to the need to take the heat out of the economy.
(PRWEB UK) 16 April 2013
The article in the Wall St Journal titled 'Turkey's Economic Growth Slows Sharply' highlights how Turkey’s rate of economic growth slowed sharply after 2 years of exceptional GDP growth. Turkey’s economy expanded by 9.2% in 2010 and 8.5% in 2011 before a relatively disappointing expansion of 2.2%, which was below most forecasts. According to Colordarcy this is not necessarily a cause for concern for property investors and could mean the opposite.
Commenting on last year’s GDP slowdown and what this means for investors in Turkey property this year, Loxley McKenzie, Managing Director of Colordarcy, said, “Normally such a dramatic slowdown in economic growth might be cause for alarm, however, much of the slowdown was down to the need to take the heat out of the economy.
Property investors should note that the price of property in Turkey still continued to rise in every major city in 2012 and indications are that they will do so again this year.”
Colordarcy points out that property prices in Ankara increased by 13.92% and in Antalya by a spectacular 22.62%. Istanbul was not too far behind with a 19.47% increase in the price of existing homes (Source: Global Property Guide).
Turkey is expected to loosen its monetary policy this year, which should mean that the country can meet its GDP growth target this year. The only doubt is that tightening economic policy last year could have a dragging effect on growth in 2013 (Source: Wall Street Journal).
According to analysts at Colordarcy, Turkey’s property market remains in good shape and a year after the loosening of restrictions on foreign ownership in 2012, there appears to be growing interest from abroad.
Gulf investors arrived in increasing numbers in 2012 and it is inevitable that they will do so again in 2013. The first signs of recovery in Europe may also provide a boost and make Turkey less reliant on its neighbours from the East.
Early indications this year suggest that the pace of growth in Turkey’s property market is shaping up to outpace that of 2012 (Source: Gyoder Statistics). If this is maintained for the next 12 months, another 11% could be added to the average value of property in cities such as Istanbul.
Notes to the editor:
Colordarcy is a leading property investment company that specialises in finding positive cash flow investment properties worldwide. Colordarcy investment property portfolio includes some of the best properties for sale in Brazil, Florida, Turkey and the United Kingdom.
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