Savills to invest in Turkish property market
Wednesday, June 18, 2008
Turkey's property market is exemplified by short supply, with huge potential investment opportunities and attractive risk-adjusted returns. International brands are increasingly entering the market and are creating considerable demand for high quality product.
Financial times have reported that the leading British real estate investment company Savills is to launch a fund to invest in the fast-growing Turkish property market.
Turkish Property Ventures Fund will invest in shopping centers and residential developments with an estimated return of 20% a year. The fund aims to raise €400m (£323m) of equity. Ian Jones, fund manager at Cordea Savills explained that Turkey is "shrugging off" the ongoing problems in the global economy and the Turkish housing market is performing strongly.
The government estimates reveal that 650,000 new houses are required annually to support the projected population growth. Mr. Jones further said that the population of Turkey with 70 million people and half of them under 30 with an average annual population growth of about one per cent signifies more opportunities. House prices are still at affordable level to generate interest among the holiday home buyers and overseas investors.
The rate of house price inflation still outpaces many other European countries, suggesting that overseas investors hoping for capital appreciation could still profit from the Turkish market if they enter the market early.
Financial times have reported that the leading British real estate investment company Savills is to launch a fund to invest in the fast-growing Turkish property market.
Turkish Property Ventures Fund will invest in shopping centers and residential developments with an estimated return of 20% a year. The fund aims to raise €400m (£323m) of equity. Ian Jones, fund manager at Cordea Savills explained that Turkey is "shrugging off" the ongoing problems in the global economy and the Turkish housing market is performing strongly.
The government estimates reveal that 650,000 new houses are required annually to support the projected population growth. Mr. Jones further said that the population of Turkey with 70 million people and half of them under 30 with an average annual population growth of about one per cent signifies more opportunities. House prices are still at affordable level to generate interest among the holiday home buyers and overseas investors.
The rate of house price inflation still outpaces many other European countries, suggesting that overseas investors hoping for capital appreciation could still profit from the Turkish market if they enter the market early.
Labels: British, Investment-property
