The total number of dwellings for construction rose from 145,397 units in 2002 to 597,786 units in 2006. Turkey's population is growing at a fast pace compared to most industrialised countries and as a result, the demand for housing continues to increase. The reclassification of industrial land has allowed construction in regions with particularly strong economic growth. At the same time, the government plans to enaure construction is evenly distributed to avoid over-development of any particular area of the this large country.
According to a recent report, Turkish executives receive one of the highest real pay levels worldwide. This is reflected in the high level of disposable income and consequent growth in the real estate sector over the last few years. Improvements to infrastructure will attract further foreign investment and create additional jobs,increasing personal wealth. With the establishment of more foreign businesses in many areas of Turkey, demand for property will also increase.
The rental market is set to improve on its already high annual yields of 8%, making buy-to-let an attractive area for investment.
Currently more than 53% of inhabitants are under 30, this ensures a steady expansion in the number of people of working age. This demographic trend will have a strong impact on housing demand as well as on commercial real estate. |
