Turkey tops global property price index with 18 pct hike

ISTANBUL/LONDON

A boat moves through heavy fog on the Bosphorus in Istanbul on February 29, 2016. AFP Photo

Property prices in Turkey increased by 18 percent last year, faster than anywhere in the world, according to a fresh ranking.

The Knight Frank Global House Price Index increased by 3 percent in 2015, up from 2.3 percent in 2014, with Turkey topping the list of 55 housing markets. 

“Turkey leads the rankings with prices rising 18 percent during 2015. Increasingly viewed as a safe haven for Middle Eastern investors, Turkey is bridging East and West whilst also seeing strong population growth,” said the report, which was published on March 9. 

Turkey was followed by New Zealand and Sweden, which saw growth of 14.2 percent and 12.3 percent, respectively. Ukraine and Greece were the weakest housing markets in 2015, recording price falls of 12 percent and 5 percent, respectively, said the index. Belgium and New Zealand were the least affordable countries when house prices are compared with incomes. 

A total of 43 of the 55 housing markets tracked in the Global House Price Index saw prices rise, up from 10 countries in the aftermath of Lehman’s collapse in 2009. 

“Our outlook for 2016 is muted. We expect the index’s overall rate of growth to be weaker in 2016 than 2015. The global economy is experiencing a potentially dangerous cocktail of low oil prices, a strong dollar and a continued slowdown in China,” said Kate Everett-Allen, international residential research at Knight Frank.