Opportunities in real estate
The Turkish real estate market is tiny. The country has twice as much land as Japan, but its commercial property, according to one estimate, is worth just 3.1% of that of the world’s second-largest economy.
Turkey has the 11th largest economy in Europe, but its real estate sector, by that same estimate ranks as 18th.
But from a low absolute number, startling potential can arise – for example the rental market in Turkey has recently generated such rapid rent rises (20% in 2004 alone) that in September, a local newspaper reported that the Cabinet was considering enforcing rent controls to ensure that further rises did not increase inflationary pressures.
Cansel Turgut, deputy general manager at TSKB Real Estate Company, says: “Development opportunities in Europe are limited, but Turkey gives investors and developers a chance to make money.”
Retail investors have been taking note. In April, Corio NV, one of the world’s largest property investment groups, paid $192 million for a 46.9% stake in Akmerkez GYO, the owner of Istanbul’s most-frequented shopping mall.
In October the Cevahir Shopping Centre, the second-biggest in the world after the Mall of America was opened.