Real estate prices drop in tourist areas
25 February 2008
Real estate prices in Turkey's major tourist areas have dropped by 15 percent to 40 percent, Seref Saglam, the chairman of Antalya Real Estate Agencies Chamber, said. In a statement he noted that two major factors conspired to affect the downturn: a sizeable interest rate increase and a high court ruling overturning a bill that would have facilitated the purchase of real property by foreigners.
Spurred on by a 1-point reduction in mortgage rates, Antalya's real estate sector experienced a boom toward the end of 2004 and at the beginning of 2005, Saglam said. The effect was strongly felt in such cameo tourist communities as Antalya, Alanya, Mersin, Mugla, Bodrum, Fethiye and Marmaris.
Many civil servants were able to buy houses at that time, Saglam added, noting that a subsequent 1.9-point jump in interest rates put a damper on the buying spree, causing the construction and real estate sectors to grind to a halt.