There is no doubt that Corona virus “Covid-19” pandemic has greatly affected the global economy in all its sectors, including the Turkish economy, and including the sectors that the real estate sector is the most important of all. However, all recent statistics have revealed about Very positive indicators for the Turkish real estate market during the past year 2020, with positive expectations of more growth and positives during the current year 2021, which is expected to witness a global economic breakthrough as the pandemic begins to recede and vaccination campaigns start in all countries of the world against the virus.
The Turkish economy bid farewell to the year 2020 with positive indicators that prompted many economic authorities to amend their expectations regarding the state of the economy in Turkey in the year 2021, such as the World Bank and Fitch for affiliation classification, and experts attributed these positive expectations to a set of reforms that were implemented in the last two months of the year These economic forecasts will affect the real estate market and real estate prices in Turkey.
After experts at the World Bank had predicted the growth of the Turkish economy in 2021 by 0.5%, they revised their forecasts at the beginning of this year to 4.5%, and they are expected to rise to 5% by 2022.
According to experts at Fitch Ratings, the start of vaccination against the Corona virus will lead to the easing of previously imposed lock-down and quarantine restrictions, which will lead to an acceleration of the Turkish economy in the second half of this year.
With regard to the real estate market in Turkey, experts suggest that the prices of new homes in Turkey will gradually increase this year, so that they will increase by 20% in the first half of it, and may rise to 50% due to the large sales that were achieved last year. Turkey has achieved a record in home sales, with the number of homes sold during the year 2020 reaching one million 499 thousand and 316 homes. Thus, home sales increased by 11.2 percent in 2020 compared to the previous year. This, in turn, led to lower interest rates in banks, and to attract many customers, many of them of foreign nationalities.
Other reasons for the real estate boom in Turkey include:
Tax cuts for real estate approved by the Turkish government.
Facilities provided by the Turkish government to foreign investors and owners.
The possibility of obtaining Turkish citizenship by purchasing real estate in Turkey.
Another reason for the high prices of new homes is the high costs. Local representatives of the real estate sector in Turkey have stated that new price lists will be issued soon. So that the investing companies will set the new prices according to the cost.
According to the head of the Istanbul Builders Association (İNDER) “Nazmi Dorbakim” the increase had started since August of 2018, but it was not reflected in prices due to the market situation at that time. Its effects did not appear until the last period.
It should be noted that the rate of increase in real estate prices in Turkey is not the same in all regions, but rather the balance between supply, demand and interest in the market affects it. As we indicated at the beginning of the article, the global breakthroughs regarding the emerging corona virus pandemic will lead to an increased demand for real estate acquisition and real estate tourism in Turkey in general.
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