Turkey, along with China, Brazil and Poland, are the rising stars of the real estate sector for investors as they promise higher profits than more expensive European centers, says Robert M. White, head of Real Capital Analytics. According to figures from the research company, significant commercial property sales of $12 billion have taken place since 2007 in Turkey. ‘There's probably even more that escaped our radar,’ says White.

Regarding Russia, White noted a recent survey among the members of the Association of Foreign Investors in Real Estate, or AFIRE, which did not even put Russian cities in its rankings.

Turkey is also "the most frequently queried country" on the Real Capital Analytics website among emerging markets, White said, adding that customers of the company were mostly interested in the retail sector.
Since the start of 2007, RCA has tracked transactions, which consists of significant commercial property sales, worth $12 billion in Turkey.

"There's probably more that escaped our radar," he said, adding that he found the figure astounding.
White's analysis of the success focuses on the weight of listed companies – Turkey's real estate investment trusts, or REITs.

"This is what distinguishes Turkey from the rest of Europe; REITs accounted for 40 percent of transactions last year. In Europe, the average figure is 10-12 percent. In the United States, it's 25 percent and in Asia, it’s around 35 percent,” he said.
In addition to improved transparency, publicly traded companies can access debt-equity much more easily than private firms, White said. "This is one of the reasons Jones Lang LaSalle upgraded Turkey in terms of improvement in transparency."
Jones Lang LaSalle released its 2010 Commercial Real Estate Transparency Index last June, declaring Turkey as the most improved market. "The expected growth in REITs and increasing foreign investment inflows ... is expected to boost transparency levels further," the company said.

There are now more than 20 publicly traded REITs in Turkey that command a combined market value of around $7 billion.
Search for higher returns White also said there was a recent trend in "escaping emerging markets" that had had an effect on real estate as well.

"Investors are generally very risk-averse," he told the Daily News. "However, as central London and Paris are 'priced to perfection,' investors will have to broaden their horizons. When London is so expensive and one can double the yield elsewhere, emerging markets will be compelling."

Commenting on the wide reach of the Housing Development Administration, or TOKİ, Turkey's public housing development agency, and its collaborations with REITs in developing property, White said the term "public-private partnership" had become a "buzzword" since the end of the global crisis.

"But it is better if such a partnership involves a central authority rather than municipalities," he said. "In the United States, we saw problems related to municipal projects as cities wanted their project to stand out. But ultimately, a project needs to be able to stand alone in the market."

White has been coming to MIPIM for the past five years. "There's a lot more optimism this year," he said. "From today, I cannot say whether it's grounded in facts and trends, or if it is just hope. But I remember how horrible 2009 was. Last year, it looked like Europe would do better than it did in the property market, but then the sovereign debt crisis cast its pall."
The volume of global transactions in 2007 was at $1.23 trillion, according to RCA data; by 2009, however, the figure had plummeted to $406 billion. "When one took Asia out of the total figure, one would see that the U.S. and Europe were about 15 percent of their peak values."