New skyscrapers under construction are pictured in Istanbul, Turkey April 10, 2015. REUTERS/Murad Sezer
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Turkish conglomerates are racing to add high-end apartment blocks and office towers to Istanbul's rapidly changing skyline, turning to one of the world's most profitable real estate markets for quick returns as other parts of the economy suffer. Anadolu Holding, which has interests in banking, retail and brewing, plans to venture into real estate with two developments in Istanbul this year, while Aksoy Holding, an energy-to-tourism conglomerate, is building a luxury residential complex on the Aegean coast and plans another project in Istanbul.Some economists warn that such investments risk fueling volatile consumption-led growth and undermining government efforts to put Turkey's economy on a more sustainable path.The government says it is committed to ensuring sustainable growth. It has pledged reforms to boost labor productivity and household savings, and make Turkey one of the world's top 10 economies by 2023 . Turkish house prices have jumped 70 percent since 2010, according to Turkey's Association of Real Estate and Real Estate Investment Companies (GYODER). The share of manufacturing in the country's $720 billion economic output fell to 23 percent last year from a peak of 35 percent in 2010, when the economy grew 9.2 percent.
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