The Future Looking Bright for Turkish Real Estate Sector and Economy

The future is looking very bright for Turkey, in terms of the real estate market and the economy. There are several reasons why I say this.

Firstly the Organisation for Economic Cooperation and Development has forecast a 3.7% growth in the Turkish economy for 2010. Hurriyet Daily News has revealed that the Turkish real estate sector grew by almost 5% in the two months ending October. And UK based Turkish estate agent revealed that Turkey is to have one of the fastest growing construction outputs in the world, on the company blog.

According to the OECD the growth will come on the back of the government's decision to lower the real interest rate to below 1%, which will increase domestic demand. However, it said that the government should take steps to limit borrowing, and that exporters must work hard to ensure competitiveness to capitalise on growth in international demand.

The growth in the real estate sector is also because of the lower interest rates, and the fact that the banks increased the term on low interest rate mortgages, first to 60 months and then to 10 years. This accelerated growth from 3% in the 9 months ending September, to a further 2% in the next two months.

Spot Blue's revelation on the construction sector is taken from the major new Global Construction 2020 research report by Global Construction Perspectives and Oxford Economics. Spot Blue said:

"We have been watching the rapid pace of growth in Turkish infrastructure development for several years now.

"It is fairly obvious to anyone who follows the markets that construction output, as well as output in similar sectors, would grow much faster in emerging markets than in established ones in coming decades. And once you know that, then, Turkey, being one of the largest and fastest growing emerging markets is obviously going to see construction output grow among the fastest in the world."

Spot Blue is one of the UK's largest Turkish property agents, with property for sale in Turkey priced from £25,000.

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