Tuesday, December 22, 2009 ISTANBUL - Hürriyet Daily News 'The real revival in the property sector will take place in 2012,' Turgay Tanes says. Turkey’s property sector may grow 5 to 6 percent next year, according to a report released on Tuesday by the Turkish Association of Real Estate Investment Companies, or GYODER. However, due to the current inventories, this growth will not reflect prices, which are expected to stay flat, said Turgay Tanes, chairman of GYODER. “The contraction in 2009 is expected to leave in its place limited growth in 2010. We do not expect any further declines in interest rates,” he told journalists. GYODER also expects a “slight increase” in foreign capital inflows next year, to the tune of $10 billion or $12 billion. “We predict the Turkish economy to grow by 4 percent on average between 2010 and 2014,” he said. Still, low interest rates and the recovery in demand might result in a slight price increase, the report said, predicting a 5 percent to 10 percent increase in supply. “The real revival in the sector will take place in 2012,” Tanes said. “With an increasing population and advancing urbanization, the need for housing will rise.” However, in commercial real estate, prospects are dim. “With decreasing employment in 2009, overall office demand has also retreated. This also triggered a decline in rents,” Tanes said. “Parallel to the limited growth foreseen in 2010, overall office demand will be low and the general tendency will be toward low-cost offices.” Regarding shopping centers, the GYODER report predicted that the fast growth seen in 2008 will not continue next year. “The shopping center sector growth will see a late recovery, due to its fast and imbalanced growth in the past,” Tanes said.