Turkey is one of the countries that has started to emerge as a potential investment target. “Many institutional investors worldwide are looking for new targets to invest in, especially after the crisis that emerged in August,” says John Kriz, Managing Director responsible for Real Estate Finance at Moody's, the international ratings institution.

Some international investors are focusing on commercial real estate in East Asia, Latin America and Central and Eastern Europe. However, there are more investors that are looking to buy commercial real estate in relatively untouched regions like Turkey.

According to Kriz, especially Istanbul, with its high quality office buildings, business centers, hotels and shopping malls, is an unprecedented opportunity for investors. The commercial real estate sector is still healthy and has notable growth potential.

Real estate investment trusts (REITs) that invest in real estate projects with high-income potential are going to become popular. “Turkish economy needs commercial real estate to grow. You need to invest in real estate while the economy diversifies. REITs are a good solution to finance these investments. They provide liquidity for the market and confidence for investors at the same time.” 

Since the mortgage crisis in the United States started in August, the real estate bubble is said to be deflating. However, increasing interest by foreign investors incommercial real estate may be beneficial for Turkey.  Due to the ongoing mortgage crisis in the United States foreign investors are increasingly interested ininvesting in commercial real estate.