Updated: Dec 23, 2020
For the third consecutive quarter, Turkey has led the rankings of the Global House Price Index, making it the most profitable country in real estate in 2020. According to Knight Frank, the country has registered a 27% increase in annual price growth of properties compared with the third quarter of 2019.
Despite the restrictions imposed by the global pandemic which devastated many economies across the world, Turkey’s economy has registered a 16% GDP increase in the third quarter of 2020 compared to the second quarter of 2020. This, along with increasing interest from foreign buyers in the Turkey real estate market has contributed to the bolstering of property prices.
In recent years, property prices in Turkey have increased drastically due to the high level of inflation. Regardless, foreign purchases from all over the world, have been increasing exponentially as the rental return on investment in Turkey generally and in Istanbul specifically have been proven to be the highest. There is a wide range of choices in prices and locations that buyers can choose from.
In the report issued for the third quarter of 2020, Seven European countries were in the top 10 of the annual rankings, while the average price change across 56 countries was 4.5%.
A house price index (HPI) measures the price changes of residential housing as a percentage change from some specific start date across a designated market. Knight Frank's Global House Price Index tracks the performance of over 50 mainstream national housing markets around the world using official data from Central Banks or National Statistic Offices in each country.