Corona's impact on real estate prices in Turkey
Last Updated: 2023-07-27The impact of Corona on real estate prices in Turkey
The world has witnessed great changes in all fields after the spread of the Corona virus, and it is certain that Turkey has not been spared from the negative impact of this virus, as the negative impact of the virus was not limited to the health sector, but included all sectors, including the country's economic sector, and certainly this impact included the tourism and commercial sectors, the team of Marsat Real Estate Company conducted a study on the extent of the impact of the Corona virus on an important part of the economic sector, which is the real estate sector in Turkey.
You will read in this article
-Tourism was affected by the pandemic negatively affected the movement of rents
-Real estate sales movements were not affected by the pandemic for these reasons
- The movement of the real estate market in the most important Turkish cities
The impact of tourism on the pandemic negatively affected the movement of rents
There is no doubt that the real estate sector in Turkey is closely related to the tourism sector, and since the Corona virus has undermined the movement of individuals between countries and stopped the arrival of foreign tourists to Turkey, the real estate sector has been affected by this because hotels and tourist real estate that depend on rents have been affected.
The real estate sector is also linked to the commercial sector, the commercial sector, which has received its share of the negative impact of the Corona virus, which led to the suspension of some businesses or the inability of some to pay rents.
The follower of developments in the real estate sector in Turkey has not noticed any negative impact of the Corona virus on real estate prices in it, but it is clearly noticeable that the value of rents has been clearly affected.
Some may seem surprised by the stability of real estate prices in Turkey and not being affected by the Corona pandemic, but those who know the field of real estate in Turkey attribute the reason for not being affected by this to several reasons, including:
- The dependence of most of the real estate buying and selling movement on Turkish citizens and foreign residents in Turkey, and thus the supply and demand in the real estate market are not affected.
- Completion of a number of projects, especially in Istanbul (Basaksehir)
- The facilities provided by the Turkish state to buy real estate remotely.
- Providing all real estate ownership services via the Internet.
- Foreigners continue to buy real estate in order to obtain Turkish citizenship.
- Foreign residents continue to buy real estate in order to obtain permanent residence in Turkey.
- Classifying the purchase of real estate as a long-term investment, the investor is not afraid of the impact of the Corona virus in the near term.
Here it is important to distinguish between real estate investment projects and speculation in real estate, buying now without study and consultation may be dangerous, if the goal of buying real estate in this period is to make a quick profit, the buyer must wait and think about it carefully.
On the other hand, we find that real estate development or real estate investment is a good idea and a successful project, as most investors seek this type of investment.
Now let's take a look at the impact of the Corona virus on Turkish cities:
Istanbul: Prices have risen much more than previous years, due to the low rate of new residential complexes, and the continued demand for real estate, and the completion of a number of development projects in Basaksehir and several other areas in Istanbul contributed to this rise.
Ankara: Ankara achieved a significant increase in real estate prices during the period of the spread of the Corona virus due to the population density of the Iraqi and Iranian communities in Ankara, and its consideration as the first destination for Iraqis in Turkey, which increased the demand for real estate in light of the decline in construction projects for new complexes. Rents have also increased significantly, for the same reason.
Antalya: The annual increase in real estate prices has decreased because the region is touristic and tourism activity has decreased significantly in the past period, while rents have increased crazily to compensate for the losses received by real estate investors in the field of tourist real estate in Antalya.
Bursa: Real estate prices rose naturally with a slight positive change, while the increase in rents was very small, due to the decrease in the number of foreign expatriates and the lack of new leases in the state during the period of the spread of Corona in Turkey.
Izmir: As for the increase in real estate prices, it is almost similar to the increase in Istanbul real estate prices during this period, but Izmir has witnessed a greater increase in rental values compared to Istanbul, due to domestic tourism.
Finally, we can say that the difficult stage, in which it was feared that a recession of the real estate market in Turkey had passed and ended, and the residential real estate sector maintained the level of demand for it by buying and selling, and the law granting Turkish citizenship to foreign real estate investors contributed $ 400,000 to maintaining the balance of profits of the real estate sector in Turkey, while the profits of hotels, tourist and commercial apartments, and student housing apartments were partially affected.
Now that the Corona crisis is about to end in Turkey, the Mersa Real Estate team has prepared a study on the most important investment projects that were built during the pandemic, so you can see the most important projects that achieve your ambitions in Turkey through our online identifiers
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