Last Updated on September 20, 2023 by Ideal Editor
Turkish Real Estate-100% Surge in Returns Over Two Years
Turkish Real Estate-100% Surge in Returns has established itself as a particularly lucrative setting for capital growth, giving investors the chance to double their money in just two years.
Residential homes purchased by savvy investors who entered the market in March 2021 saw the value of their holdings soar. This sharp increase in property values peaked in 2022 when the average price of a home in Turkey increased by an astonishing 75% when expressed in US dollars.
Alternative Policies of the Central Bank
The Turkish central bank’s unconventional monetary policy was one of the major forces behind this paradigm change. The central bank chose an alternate strategy by dramatically decreasing interest rates to reduce demand in the face of rising inflation as opposed to turning to conventional measures like raising interest rates. In response to this action, hyperinflation accelerated and the yearly consumer price index began to creep towards triple-digit levels. According to Turkstat data, this transformation led to a change in the bank’s policy position under the direction of the recently appointed central bank chief, ultimately causing inflation to drop to 48%.
Increase in Foreign Property Purchases
Turkey became a desirable location for people switching to remote work arrangements during the global pandemic thanks in large part to the depreciation of the Turkish lira, which played a vital role. International migrants to Turkey were in a good position because their living expenditures were priced in lira and their income was denominated in strong currencies like the US dollar, euro, or British pound.
According to a study done by the online real estate marketplace Housearch.com, the monthly cost of living in Antalya, a city famous for its beautiful beaches and coastal beauty, ranges from just $1,000 for those on a tight budget to $2,000 for those wanting a luxurious lifestyle. In the Aksu region, a one-bedroom flat near the water rents for about $300 per month, while prices in posh neighbourhoods like Konyaalt or Muratpaşa can go up to $950. For people who frequently eat out, the average monthly food costs range from $400 to $600.
A monthly pass for public transportation in Antalya is only $25, and the average cost of a cab ride is $0.50 per kilometer or $3.35 per hour.
According to official statistics, overseas property purchases increased by a staggering 15.2% in 2022 alone. Market analysts largely concur that the increasing trend of property prices is expected to continue, despite the fact that a sizable number of these transactions were attributed to Russian buyers looking for alternatives to European real estate investments. While the development rates of significant urban areas like Istanbul, Izmir, and Bodrum may be moderating, coastal locations still have a significant upside.
Demand for Coastal Locations
There is a clear trend developing as more purchasers express interest in coastal property in places like Kusadasi, Kalkan, Antalya, and Alanya. Since the start of the pandemic, there has been a noticeable increase in demand for beachfront properties, with seismic activity in some areas of Turkey doing little to halt the upward trend in real estate sales. The removal of uncertainty has boosted international investors’ trust, which has been furthered by President Recep Tayyip Erdoan’s reelection.
Real estate developers are encouraged by these developments as foreign investment corporations turn their attention back to Turkey’s real estate industry. The housing market appears to be primed for the introduction of new development projects that are likely to draw foreign investors, with house prices already outpacing construction costs and being predominantly driven by foreign demand.
