Reasons behind the change in real estate prices in Turkey
In recent periods, the cities of Turkey have witnessed a continuous rise and change in real estate prices, especially in major cities such as Istanbul, Ankara, Antalya, and others. The change in real estate prices will certainly be followed by other results, such as the rise in rents. One of the reasons that contributed greatly to the change in real estate prices in Turkey is the Corona pandemic, which restricted the world economy, and this would cause Turkey to stop temporarily at all levels, the most important of which is the real estate level, which witnessed a stagnation at some point. This naturally leads to a change in real estate prices from what it was previously, in addition to the natural disasters that some countries witnessed, and Turkey had a share of the fires that devoured large parts of some of its areas, and this also had an impact on the investment market and real estate projects. On the other hand, the number of investors who choose the Turkish real estate market is very large and attractive. One of the most important reasons that push investors to buy a property in Turkey is the great attraction and temptation offered by real estate prices in Turkey because of their significantly lower prices compared to other foreign real estate prices, despite their distinctive specifications. But despite the differences between real estate prices in European countries and Turkey, the real estate market in Turkey is witnessing instability in the prices of apartments and real estate there.
• Reasons for the rise in real estate prices in Turkey
The latest reports in the recent period show that the real estate market in Turkey and investments in it have a bright future. According to the latest reports of the Turkish Statistics Authority, there will be an increase in the costs of establishing real estate in Turkey, as the cost of building a house in Turkey has increased compared to previous years. But on the other hand, some reasons led to the rise in real estate prices in Turkey, including:
- Increasing demand from foreign investors
There is a significant increase in foreign investments in Turkey that cannot be underestimated at all, especially from Arab investors who buy real estate significantly, which in turn affects the balance of supply and demand in the Turkish real estate market, and this will lead to a clear change in real estate prices.
- Residential complexes
The demand for real estate located within residential complexes has increased in recent times. These complexes enjoy various social and recreational services, including indoor and outdoor swimming pools, gyms, gardens, and many other services that increase the costs of the property and are reflected in its price. When a luxury residential complex is established in one of the areas, the old real estate outside the complex in the area is affected by the high prices of the complex's real estate, or even these properties are demolished and more high-quality and luxurious ones are built instead. This is considered one of the most important reasons that contribute to the instability of real estate prices.
-Real Estate Quality
One of the most important reasons for the continuous rise in real estate prices in Turkey is the high construction costs that rise every year and to build more quality and luxurious properties compared to the past, where in the past, luxury buildings were only built-in high-end neighborhoods, but nowadays luxury buildings are found in every place and they are created anywhere the investor wants, and this, in turn, is reflected in the prices, which will certainly lead to their rise.
- Increased sales
The increasing influx of new investors, especially foreigners, into the real estate market in Turkey has greatly contributed to the increase in the demand for real estate in Turkey. At the same time, the construction of real estate in Turkey is still somewhat low due to the high costs of construction and reconstruction compared to previous years, which led to a significant increase in the value of these properties.
- Real estate location
It is one of the most important factors that determine the price of real estate in any city in Turkey, as each location has its price. Real estate near the coast or overlooking the sea has a different price than those that are far away. In a similar context, the real estate that is close to the transportation network and the metro will have a different price than the rest of the distant properties. Many similar factors contribute to the change in real estate prices from one region to another. This is one of the most common reasons that lead to instability in real estate prices.
The general situation in the recent period at the international level and the internal level within Turkey imposed many changes, especially the Corona pandemic, and natural disasters, which contributed significantly to changing prices in the Turkish real estate market. This may be an exceptional period, and things will return to the way they were. Turkey is a great economic country that always seeks to provide all areas in it with the best place.
