The latest Global House index examined the global housing market growth in over 50 countries. Global trends reveal a 7.3% overall increase in global housing prices by March 2021.
Turkey led the rankings for annual price growth for the fifth consecutive quarter. the highest 32% by turkey was followed by 22% by New Zealand and 13.2% by the US.
Turkey’s housing market has shown a 16.2% year-on-year growth as of May. Initial measures to deal with the pandemic outbreak led to a sharp downturn last year however, the rapid recovery is aided by massive foreign investments.
Similar studies by the Turkish statistical institute showed a year-on-year increase of 106.5%. sales to foreign buyers. The rising borrowing cost is said to weigh in on mortgage sales.
Istanbul, the largest city and tourism center of the country accounted for the largest number of sales, making up around 19.2% of the total sales. More than half of these residential properties were purchased by foreign investors.
While the initial knight frank survey dubbed this rapid increase as a disadvantage however, the home prices are attractive to foreign investors to tap into the real estate market of Turkey.