The mobility experienced in the financial markets of the past year caused the investors living in the short-term demand for profit maximization to stay away from real estate investments. Now, in the same way, real estate investors prefer to stay pending due to the rapid increase in exchange rates.
Investing to Real Estate Slowed
ERA Real Estate Turkey General Manager Özhan Atalay assessed the impact of the current movements in exchange rates on the real estate sector: “Particularly in the last few months, the fluctuations in foreign exchange rates and the appreciation of the USD by 10% and the Euro by 13% since the beginning of the year have stopped the investors who have foreign currencies and are waiting to buy real estate. This movement, which corresponds to a 10% price increase in real estate sold on the basis of foreign exchange, has also led investors who have entered into the anticipation of falling prices to wait for a while.”
Istanbul and Ankara Most Attractive Places
Atalay stated that the USD had increased by 10%, the Euro 23%, the gold 20%, and the inflation 12% in 2017, he continued; “Construction costs continue to rise due to inflation, while the building cost index increased by 20% last year, while housing prices rose by only 11%. While prices have increased by 7.4% in Istanbul and by 6.5% in Ankara, housing investment has shown to be particularly attractive in Istanbul and Ankara. Even though there is a slowdown due to the economic and political effects in the housing sales periodically, we believe that it will continue for many years the need for housing in Turkey. With the exchange rates at normal levels, investors will turn to real estate investments, which are safe havens.”