Ah, ya gotta love the wide-eyed "rents don't matter" second home property investors who are getting slaughtered all around the world now - Miami, Spain, Bulgaria, Ireland, Latvia, Lithuania and now even Turkey.
Bloody idiots. The biggest problem isn't the Brits and the Californians who started it. Nope, it's the locals who got sucked along into the Ponzi Scheme just like the sheeple in Phoenix, Vegas and Tampa, who got in right when the out-of-state or out-of-country speculators were getting out. They're the real bag holders in this mess now as the investors flee or walk away.
Thanks Mark for the link.
Turkish Daily News - Summer house prices upside down
Real estate prices in Turkey's major tourist areas have dropped by 15 percent to 40 percent, an industry executive said Saturday.
Spurred on by a 1-point reduction in mortgage rates, Antalya's real estate sector experienced a boom toward the end of 2004 and at the beginning of 2005, Sağlam said. The effect was strongly felt in such cameo tourist communities as Antalya, Alanya, Mersin, Muğla, Bodrum, Fethiye and Marmaris.
Many civil servants were able to buy houses at that time, Sağlam added, noting that a subsequent 1.9-point jump in interest rates put a damper on the buying spree, causing the construction and real estate sectors to grind to a halt.
“This increase gave rise to stagnation in the Antalyan real estate sector,” he said. “Sales suddenly stopped and began to decline, leading to a 35 to 40 percent drop in prices today.
February 28, 2008
How do you say "Ponzi Scheme" or "holy crap I just got killed in real estate" in Turkish? Turkey tourist area home prices crash 40%
Posted by blogger at 2/28/2008