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Property prices in Turkey starting to increase but some locations still falling

According to the latest monthly REIDIN Turkey Residential Property Price Index which is regarded as the most reliable and consistent benchmark of housing prices in Turkey, prices increased 0.26% in Adana, 0.36% in Ankara, 0.55% in Bursa, 0.53% in Istanbul and 0.06% in Kocaeli.
But the data, which covers seven major cities and their 71 districts, also showed that prices were down 0.12% in Antalya and 0.05% in Izmir during March 2010.
Residential rent prices increased 1.11% in Adana, 0.66% in Antalya, 0.30% in Istanbul, 0.42% in Izmir and 0.12% in Kocaeli but fell 0.68% in Bursa and remained constant in Ankara during March 2010.
When adjusted by inflation rate according to the Consumer Price Index, the residential real estate investments caused a loss to the investors in real terms in February 2010. Accordingly, the rate of loss in real terms is 0.90% in Adana, 0.94% in Ankara, 0.97% in Antalya, 0.95% in Bursa, 0.90% in Istanbul, 1.00% in Izmir and 0.93% in Kocaeli on monthly basis, the report also shows.
The figures come on the back of a positive economic outlook for the country. Turkey went from a recessionary economic situation in the first half of 2009 to recovery through the second half, according to a recent research report from
‘The sharp improvement in the third quarter of 2009 has confirmed our long held view that Turkey would be among the best positioned economies in emerging Europe to recover quickly and that a protracted recession would be unlikely,’ the report said.
‘Consumer confidence, business activity and property development started 2010 with signs of recovery and we expect real GDP growth forecast to rise back to 3.7% in 2010. A fundamentally stable banking system, low levels of private sector leverage, attractive demographic conditions and government-led market reforms, will ensure a robust recovery in Turkey, with relatively limited macroeconomic risks,’ it continued.
‘With Turkey significantly outperforming other major economies in central and Eastern Europe in Q309, our view that the country was among the best positioned in the region to recover quickly has been reinforced,’ the report concluded.