Turkish property market 'to be boosted by new mortgage laws'
New mortgage laws to be introduced in Turkey could prove to be major boost to the country's real estate market, according to a new report.
Oxford Business Group, an economic and political intelligence company, claims that Turkey's first-ever mortgage laws could introduce more transparency and "better visibility" in the real estate market overall.
And while interest rates are currently set too high to attract many traditional homeowners, the report shows that property investors could benefit from the changes in the market brought forward by the new laws.
Teoman Metehan, chief executive officer of Teknik Yapi, a construction firm, is quoted as saying: "The expectation is that real estate prices will increase due to the mortgage law, so the high end is still trying to pre-empt the price rise and acquire property now."
Analyst Yavuz Uzay from Credit Suisse also commented that the new mortgage rules are likely to be the "single largest absolute driver of retail loan growth" over the course of the next five or ten years.
Last week, a poll from the Turkish Research Centre revealed that German interest in Turkish properties is on the increase, the Today's Zaman newspaper reported.
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