An Analysis of the Strengths and Weaknesses of the Turkish Real Estate Market

Abstract:     
Real estate is one of the foremost and traditional investments for Turkish household. In addition to this traditional demand, it has also observed that Turkish real estate market becomes one of the popular investment destination for foreign investors. 2003-2007 period would be accepted as the boom period for Turkish economy in general and real estate sector in specific. Although there are considerable opportunities in the market, both Turkish economy and real estate sector suffer important structural problems. Hence, the objective assessment for the Turkish real estate market requires a cost-benefit analysis. In this paper, the author is attempting to reach an objective approach presenting both strong and also weak sides of market. The critical point is current deficiencies of the market may result negative impacts on further development. As a solution, we suggest that Real Estate Regulation and Supervision Agency should be established as a new government agency. To our view, primary expectation of this agency is to issue regulations/standards for real estate brokerage/ marketing/appraisal, and also housing finance to enhance consumer protection, public interest and market efficiency.

Number of Pages in PDF File: 36

Keywords: Turkish Real Estate Market, Consumer Protection in Real Estate, Real Estate Appraisal, Real Estate Regulation and Supervision Agency

JEL Classification: G21, R14, O18

working papers series