Turkish Real Estate Market Outlook 2014

Since 2008, residential, office and commercial properties have outperformed in the Turkish real estate market. Indeed, rental yields and selling prices for retail and residential properties have continued to grow over the last three years.

In the following years, with the impact of the new incentive schemes and increasing demand in the nearby geographies, the investments may shift towards the eastern part of Turkey driving the demand for commercial buildings. The real estate investors following this trend will also focus on investment in properties in these regions.

Turkish real estate players may differentiate themselves by creating new opportunities such as joint ventures with international partners. In the next three years, the following significant hot topics will be on the agenda of the Turkish real estate industry:

• Demand for residential properties driven by urban regeneration projects
• Green building concepts which have a positive impact on the asset values of the properties
• The new commercial and residential zones that will develop along the 3rd Bridge and 3rd Airport in Istanbul and the new highway projects in Turkey
• The impact of medical tourism on hospital and hotel investments