Inescapable, expected, notorious boom’n bust!
The New York Times analysis of Turkey’s construction boom: Alarm Over Istanbul’s Building Boom
Mr. Erdogan’s timing was perfect, coinciding with the global liquidity glut unleashed by the world’s leading central banks to restore growth in the advanced industrial economies after the Great Recession. One result was a sharp increase in lending by Turkish banks, much of it directed toward property developers.
But as Turkish interest rates spike and the economy slows, local bankers and real estate experts are becoming increasingly worried that Istanbul’s real estate market may be heading for a fall.
(Photo by Yanni Gigourtsis)