As prices of property in Spain have dropped for the third month in a row, interest in Turkish property is continuing to increase.
Foriegn investors are increasingly choosing to invest in Turkey's property market, according to The Turkish Daily News, stating that investing in the country's real estate was becoming a "hot new trend" among overseas property investors.
However, the price of existing homes in Spain – regarded as Turkey`s big rival foreign real estate investment – fell for the third month in a row.
The Turkish Daily News attributed Turkey`s boost due to a high-growth market, as it offered investors the chance to get higher yields than they could in more established markets.
Istanbul was described as the main hotspot, as it was widely seen to offer a multitude of investment opportunities. Foreign investments in Turkish real estate were likely to increase from £896 million to more than £1 billion.
In addition, it stated that during the next decade, more than 7 million new properties could be built across the whole Turkey.
Meanwhile, Spain - Europe's hottest housing market this decade - experienced a sharp slowdown, a survey by online real estate site Facilisimo.com said. It showed nationwide prices of existing homes fell 0.32 percent in September.
It showed prices of second hand homes were now falling in Spain's largest real estate markets Madrid and Barcelona, easing 1.93 percent and 2.1 percent respectively during September. "It confirms that there is a sharp slowdown in the housing market in 2007," the report said.
Facilismo published the figures as Spain's largest real estate firms unveiled an industry lobby to shore up confidence in their sector among analysts and investors.
The lobby, known as Grupo 14, has been in the works since April when problems at property firm Astroc raised fears the Spanish real estate market was about to implode.
Spanish house prices have grown around 150 percent since 2000, marking the fastest rate of growth in Europe.
Spain's government and many analysts forecast a soft landing for the market with economists predicting price stagnation or moderate price falls by late next year.
To support Spain's housing market the government has budgeted 348 million euros in rent subsidies for the 2008 election year to encourage stay-at-home young adults to leave the family nest.
