‘Balloon’ risk at Turkey's real-estate sector

ISTANBUL – Anadolu Agency

Turkey’s real-estate sector has the risk of “ballooning” if it keeps up with same growth rate, Turkey’s Association of Real Estate Investment Companies (GYODER) urged President Aziz Torun.

“If growth continues at the same speed in Turkey’s real-estate sector, there is risk of ballooning in the coming years,” Torun said in an interview. He said despite a growth in supplies, they did not foresee demands growing easily. This may cause excess supply, he said, adding the sector should act by envisaging this.

Also, Torun said the targets’ revisions in the medium-term economic outlook showed targets for inflation, growth and current account deficit would not be able to be achieved. He stressed that this also adversely affected the real-estate sector. For this reason, both investors and buyers should be careful, he added.

Torun said changes in exchange rates do not have large impacts on the real-estate sector, but it might affect some inputs used in the sector. “The rise in exchange rates hasn’t caused panic. But it is important that exchange rates shouldn’t rise surprisingly from now. Investors should be cautious for 2014,” he said.