Has the real estate market in Turkey been affected by the change in the price of the Turkish lira
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What do you think, will the real estate market in Turkey be affected by the change in the price of the Turkish lira against foreign currencies?
There is no doubt that this great confusion experienced by the Turkish lira against the US dollar will affect one way or another on the real estate sector, but the question that arises is what is the extent of this impact?
You will find an answer to this question through the following article that we will present and we wish you a useful reading.
To what extent is the real estate market in Turkey affected by the change in the price of the lira?
Through the following paragraphs, we will present to you many questions and then answer them about the real estate field in Turkey and the impact of the Turkish lira on it.
1 – According to the change in the value of the Turkish lira against foreign currencies, should I sell my property in Turkey or not at the moment?
It cannot be overlooked that the fluctuation of the value of the Turkish lira against the US dollar or other foreign currencies will greatly affect your decision to buy real estate in Turkey.
When the lira collapses against the dollar automatically, real estate prices will rise, and the main reason for this is the rise in the prices of raw construction materials because Turkey imports them from abroad.
There are those who see this as negative, but the reality is otherwise, as it is an opportunity for smart people, where it is necessary to rush to sell and take advantage of the price difference that resulted between the two stages of buying and selling.
In general, what can be said here is that there is no loss with real estate if this is what worries you, even if its value decreases, you have to wait for a period of time for it to improve.
2 – Who is affected by the change in the exchange rate of the Turkish lira in the real estate field?
We have previously indicated that the change in the value of the Turkish lira does not necessarily have a negative impact, and at the same time its negative dimensions cannot be denied. The Turkish investor is considered one of the most affected by it, because all his money is in the local currency. As for the foreign investor, his money is in US dollars and according to the law he must buy real estate in Turkey According to the local currency, that is, he is obliged to sell the dollars in his possession.
3 – What are the things that should be taken into consideration when buying a property in Turkey in light of the change in the value of the Turkish lira?
This period calls for caution, so it is necessary to deal with a reliable real estate company that has good relations with construction companies to provide you with the best real estate opportunities and high discounts.
Before you choose the company that you will deal with, ask about its reputation in the market and take an idea of the services it provides, as you can communicate with clients who have previously dealt with it.
4 – Will real estate completely lose its value when the price of the Turkish lira drops against foreign currencies?
Some believe that when the value of the Turkish lira changes, real estate will lose its value. Is this true? Of course, but it does not lose its value in full, as there are no losses with real estate, and it can recover its value quickly with the improvement of the value of the lira.
In this regard, we advise real estate investors not to make the decision to sell the property quickly, but rather to wait for the value of the lira to improve so as not to incur losses.
Did you know that when you choose the property correctly from the beginning, it is not affected like others (that is, it has a strategic location, a distinctive view, a well-thought-out space, and modern and modern specifications).
5 – Are rents in Turkey affected by the value of the Turkish lira?
Of course, real estate rental prices in Turkey also rise when the price of the Turkish lira changes. In this context, it should be noted that it has risen significantly due to the decline in the demand for purchase against the increase in demand for rent.
(This circumstance is a great opportunity for investors who prefer to invest their real estate by leasing it).
You should also know that the taxes on real estate will be recorded as well, because there is no fixed number for taxes, but rather it is a percentage of the value of the property.
What are the reasons for the depreciation of the Turkish lira?
Through the following paragraph, you can learn about the reasons why the Turkish lira loses part of its value.
1 – First, the Corona crisis, which affected the world as a whole, as it closed the borders and crossing points between the countries of the world and restricted travel to Turkey, and thus the tourist seasons stopped completely.
Also, due to this epidemic crisis, many foreign investors preferred to stop their investments for fear of falling into losses.
2 – Low interest rates also had a negative impact on the value of the Turkish lira, and the Central Bank insisted on not raising interest rates despite the conditions in the lira.
3 – The political and economic conditions and Turkey’s relations with the European Union, the Arab countries and the Gulf states also played a role in the development of the Turkish lira.
What we can say here is that the Turkish lira was resistant to all these crises and was able to deviate from the expectations of many economists and analysts.
What is the future of real estate in Turkey?
Now you are surely wondering about the future of real estate in Turkey. Will prices rise or fall or will they maintain their current status?
According to expectations, it will record a significant increase, which may reach sixty percent, for many reasons, including:
– As we have already mentioned, the prices of building materials will rise because they are imported.
– There is an unprecedented demand for buying real estate in Turkey in light of the crises and wars that the world is witnessing.
– The Turkish government allows foreigners to own property remotely.
– The high quality of real estate in Turkey (it conforms to international standards).
(The large increase in their purchase makes a gap between the volume of demand for real estate and the volume of the offer).
We have provided you with a summary about the impact of the depreciation of the Turkish lira against foreign currencies on the real estate sector in Turkey. If there are more questions about this topic, you can contact us to provide you with accurate answers.
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