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Is Turkey headed for a housing bubble?

Will Turkey’s housing sector, which leads the world in price increases, continue to attract foreign investors?
A lone house is seen at a construction site of an urban transformation project in Fikirtepe, an Istanbul neighborhood, in the Asian part of the city, May 7, 2014. The house belongs to a family who has refused to give its approval for the demolishment of the building, bringing the transformation project to a standstill. The owner of the house has demanded a new contract with further guarantees before signing an agreement with the construction firm behind the project, local media reported. REUTERS/Murad Sezer
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Over the years, the only sector in Turkey that hasn’t disappointed investors seeking high returns has been housing. The trend continues, although there are fears that it may be a bubble that could burst soon.

According to Central Bank data, housing prices in Turkey in January 2016 went up 17.5 % compared to January 2015. And the increase in Istanbul prices is about 22%, making Turkey the leader in the global list of housing prices.

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