Turkish real estate market sales report for the first quarter of 2020
Real estate sales to foreigners in Turkey increased by 14 percent during the first quarter of this year, compared to 2019, and according to the Turkish Statistics Authority, foreigners bought 9,618 apartments during the period between January and March 2019 and showed the same data according to the agency Anatolia: This figure increased by 14 percent, to 10,948 apartments during the same period in 2020.
According to statistics, foreigners preferred Istanbul to buy apartments, where they bought 5374 apartments, and Antalya ranked second, then Ankara and Yalova exchange, and the Iranians ranked first among foreigners who most buy apartments in Turkey between January and March 2020, by purchasing 1864 apartments. The Iraqis came second with 1,856 apartments, Russians third with 763, Afghans fourth with 644, and Yemenis ranked fifth with 386.
Many real estate experts emphasized that there is a limited demand for purchase during the first quarter of this year by some investors, and added that consumers are controlled by fear of the unknown, so they decided to wait until the visibility and the end of the current period have ended, and some link the rise of foreign purchases of Turkish real estate to the decline witnessed The Turkish currency, as the lira is trading near its weakest level ever, which it reached during the currency crisis in 2018.
The effect of the Turkish lira and Corona virus
The Turkish lira is still about 13 percent low compared to its level at the end of last year, and at the height of the crisis in mid-August 2018, the lira tumbled to 7.24 per dollar, and observers attribute the reasons for the decline in the exchange rate to the failure of a large part of the productive sector due to the outbreak of the Corona virus, With a near paralysis of the tourism sector, after Turkey stopped all flights, including the interior, and postponed the tourist season and canceled activities and events until next month. However, real estate sales in Turkey achieved a distinguished number that they did not achieve in eight years, due to the low interest rates on real estate loans in general, in addition to many other reasons.
The real estate sale is performing best for 8 years
Real estate sales in Turkey during the first quarter of this year recorded their best performance in 8 years, by achieving a record number of 341 thousand properties, and this comes against the background of low interest rates on real estate loans, and according to the data of the Turkish Statistics Authority, the central bank cut interest rates Progressive since the second half of 2019 has led to a decline in interest rates on real estate loans, and increased interest of citizens in owning them.
Also, real estate sales during the first three months of this year amounted to 341 thousand, achieving the best performance in the first quarter in eight years, and January sales reached nearly 113 thousand properties, and in February 118 thousand, and in March, 108 thousand.
And recently, the Turkish Central Bank reduced the interest rate by 100 basis points, for one-week repurchases, from 10.75 to 9.75 percent, which led to a decrease in real estate loans to 0.94-0.95 on a monthly basis.
As a general indication of the start of the recovery of the Turkish economy, the coordinating president of Istanbul Exporters’ Associations “Mohsen Çakıcı” announced that his organization confiscated two billion dollars in the first quarter of this year, and Çakıcı pointed out that exports increased in the first quarter of this year by 9 percent compared to the first quarter of 2019.
“Despite the outbreak of the Corona epidemic that ravaged the global economy, we continued to increase exports in the first quarter of 2020,” Çakıcı said. He added: Iraq ranked first among the importing countries from Istanbul with a value of 128.5 million dollars, and second came Norway with 114 million, followed by Germany with 105. The statement clarified that the value of exports of exporting associations in Istanbul last March amounted to 660 million dollars.
With the start of improvement in Istanbul’s exports, the city is preparing to start the recovery of the real estate market in Istanbul and its strong return at the beginning of next June, when the Turkish government announced – according to its plan to gradually restore normal life – that the first stages of the return to normal life will be at the beginning of next month, Including, inevitably, the growing dynamic movement of the promising Turkish real estate sector.
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