14 September 2009

REIDIN.com INDEXFocus Turkey August 2009 Real Estate Sector Analysis – Residential

Volume:     9
Date:        September 15, 2009
Location:    Istanbul, Dubai, London

The monthly and yearly earning yields of residential real estates in 7 large cities of Turkey (Adana, Ankara, Antalya, Bursa, Istanbul, Izmir and Kocaeli) for the period August 2009 were calculated by using the “monthly price/square meter median sales and rent values” compiled by REIDIN.COM and weighted according to the populations in these cities.

When the residential real estate investments and the financial investment instruments are adjusted by inflation rate according to the Consumer Price Index (CPI), it is seen that the investment instrument having the highest monthly real return is the ISE-100 Index.

When adjusted by inflation rate according to the Consumer Price Index, the residential real estate investments caused a profit to the investors in real terms in August 2009. Accordingly, the rate of profit in real terms is 0.88% in Adana, 0.82% in Ankara, 0.77% in Antalya, 0.80% in Bursa, 0.86% in Istanbul, 0.75% in Izmir and 0.77% in Kocaeli on monthly basis.

When adjusted by inflation rate according to the Consumer Price Index (-0.30%), the monthly real profit rate of investors of the Deposit Interest Rate and the Istanbul Stock Exchange (ISE-100 Index) were 1.07% and 19.06%, while US Dollar, Euro and Gold (ingot) posted loss of 1.71%, 0.50% and 0.10% respectively.

The residential sales prices increased 3.40% in Kocaeli, 2.17% in Bursa, 1.66% in Antalya, 1.22% in Izmir, 1.08% in Adana and 0.12% in Ankara. Istanbul was the only city that the sales prices did not change during August 2009.

The residential rent prices increased 1.05% in Izmir, 0.85% in Antalya, 0.75% in Kocaeli, and 0.47% in Ankara. Bursa was the only city that the sales prices did not change during August 2009. On the other hand, Istanbul and Adana were the cities that the rent prices fell 0.45% and 0.92% respectively during that period.

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