Real Estate Cycles and Assesment for Turkish Real Estate Markets

Abstract

Real estate bubble risk is currently one of the most widely debated topics for Turkish housing markets. The latest VAT regulation of Turkish government, unsold housing units in the market, growing credit portfolio of housing-construction sectors seem critical factors in this perception. The paper aims to analyze housing-construction risks of Turkish markets by specifically focusing on financial crisis originated from the risks of housing markets in Turkey and other countries. Based on the analysis in the paper, we argue that policy makers and market players should be careful on the potential risks of the market in the near future.