14 April 2009
REIDIN.com INDEXFocus Turkey March 2009 Real Estate Sector Analysis – Residential
REIDIN.com INDEXFocus Turkey
March 2009 Real Estate Sector Analysis – Residential
Date: April 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 March 2009 were calculated by using the “monthly price/square meter median sales and rent values” compiled by REIDIN.COM and weighed 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 Euro.
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 March 2009. Accordingly, the rate of loss in real terms is 0.54% in Adana, 0.56% in Ankara, 0.56% in Bursa, 0.56% in Istanbul, 0.62% in Izmir and 0.56% in Kocaeli on monthly basis.
When adjusted by inflation rate according to the Consumer Price Index (1.10%), the monthly real profit rate of investors of Euro, US Dollar and Gold (ingot) were 3.86%, 1.78%, and 0.30% respectively, while the Deposit Interest Rate and the Istanbul Stock Exchange (ISE-100 Index) posted losses of 0.11% and 4.67% respectively.
The residential sales prices in Turkey’s major 6 cities fell at significant rates in March compared to February of this year. During that period, residential sales price fell 3.78% in Izmir, 1.40% in Ankara, 1.29% in Kocaeli, 0.74% in Adana, 0.46% in Bursa and 0.43% in Istanbul.
The residential rent prices fell 6.21% in Kocaeli, 3.47% in Istanbul, 2.58% in Bursa, 1.35% in Adana and 0.67% in Izmir. Ankara was also the only city that the rent prices did not change during that period.
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