16 July 2009

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

Volume: 6

Date: June 15, 2009

Location: Istanbul, Dubai, London

The monthly and yearly earning yields of residential real estates in 6 large cities of Turkey (Adana, Ankara, Bursa, Istanbul, Izmir and Kocaeli) for the period May 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 loss to the investors in real terms in May 2009. Accordingly, the rate of loss in real terms is 0.05% in Adana, 0.11% in Ankara, 0.11% in Bursa, 0.08% in Istanbul, 0.19% in Izmir and 0.12% in Kocaeli on monthly basis.

When adjusted by inflation rate according to the Consumer Price Index (0.64%), the monthly real profit rate of investors of the Deposit Interest Rate, Gold (ingot) and the Istanbul Stock Exchange (ISE-100 Index) were 0.25%, 0.65% and 18.34% respectively, while US Dollar and Euro posted losses of 3.82% and 0.54% respectively.

The residential sales prices increased 6.18% in Bursa, 3.88% in Izmir, 3.77% in Ankara, 3.30% in Kocaeli, and 1.47% in Istanbul. On the other hand, the residential sales prices did not change in Adana in May compared to April of this year.