Turkish residential real estate investment analysis

This paper examines the investment potential for Turkish Residential Real Estate Market, focusing mainly on Istanbul. With a stable economy since 2002, dynamic population, geo-political location and the potential accession to EU, Turkey provides exciting opportunities to local and international investors. Turkish economy, worldwide, ranks at twentieth in terms of GDP level and in 2005, ULI/ PriceWaterhouseCoopers has ranked Istanbul as the top development market. The question the paper is trying to answer is: Does Turkey's Residential Real Estate Market provide an attractive investment opportunity? To determine this I have reviewed the following factors: economic forecasts, political stability, newly enacted mortgage market, FDI forecasts, potential for foreign real estate ownership, current status & future predictions of real estate sector, potential of EU accession and comparison to Spanish & Romanian real estate markets. The method I used to accomplish this was mainly literature review and interviews with real estate brokers/developers. Turkey's economic stability, developing mortgage market, continuing FDI, foreigners' investment in vacation houses, improving legal transparency and potential accession to European Union makes Turkey, especially Istanbul, an increasingly attractive market. On the other hand, political stability is crucial for economic stability. In addition, slow legal system, unregistered construction activity, insufficient quality of some buildings and limited infrastructure in certain parts of the country remain to be problematic issues. Considering Turkey's opportunities and risks, it is a top investment destination in Europe, dependent on sustainable political stability, an improved mortgage & legal system and successful implementation of EU accession plan.

Department dc:contributor.department

Massachusetts Institute of Technology. Dept. of Urban Studies and Planning.

Grantor dc:publisher

Massachusetts Institute of Technology

Year dc:date.issued

2007

Author dc:creator

• Ciller, Berk (Berk U.)

Advisor dc:contributor.advisor

• John Kennedy.

• Urban Studies and Planning.

Statement dc:rights

• M.I.T. theses are protected by copyright. They may be viewed from this source for any purpose, but reproduction or distribution in any format is prohibited without written permission. See provided URL for inquiries about permission.

Licence dc:rights.uri

• http://dspace.mit.edu/handle/1721.1/7582

Language dc:language.iso

eng

Handle dc:identifier.uri

http://hdl.handle.net/1721.1/42013

OAI identifier oai:identifier

oai:dspace.mit.edu:1721.1/42013