Has the tightening credit situation affected property prices in Turkey?
Are some sectors more affected than others? Celen: The credit situation has had negative impact on property prices in Turkey. The demand has ceased due to uncertainty in expectations and as natural repercussion of the situation; price discounts vary in relation to product type and the location. The residential projects under development have received the harshest blow. Absorption rates have fallen and prices are being greatly discounted to improve sales. The main area of impact has been on income producing properties like shopping centers and hotels. Shortages in credit facilities have had a larger impact on shopping centers and hotels under development where pre-sales are not possible. The saturation in the retail supply in some areas has had an exponential impact on the effect of shrinking consumer spending. Thus many shopping center investors are under pressure for discounts in rentals. Industrial property is the least effected. Land transactions are not happening and thus we do not
