With the elections finally over, Turkey’s real estate market is showing signs of bouncing back as companies launch new projects that they had previously put on hold.
After reducing the uncertainty associated with the elections, Foreign companies are also looking at opportunities in the local housing market. Foreign companies, which were mostly buying real estate, You are now thinking about developing projects in Türkiye.
According to Inang Kabadai, Chairman of the Board of Directors of Aegeapi Unitem, There is an increase in interest from foreign investors after the elections. And he said: “Foreign developers see huge opportunities in the Turkish market. We are in talks with companies from the Gulf and Central Asian countries to develop projects.” He added: “We will see more foreign companies in the real estate market.”
Kabadayi suggested diversifying the funding provided to the sector. A specialized bank may be established, Real estate investment funds may be allowed to invest in ongoing projects. He added that measures must be taken to reduce land prices. which constitute a large portion of house prices, This will help in producing more homes.
Turkish real estate market indicators
The Turkish Statistical Institute (Turkstat) said this week that the annual increase in the construction cost index slowed from 60.7 percent in March to 53 percent in April. The monthly rise was 0.9 percent.
Labor costs in the construction sector grew 0.18 percent month-on-month and 103 percent when compared year-over-year.
The monthly and annual index increases in material cost were 1.4 percent and 40 percent, respectively.
In the first four months of 2023, Home sales fell 18.6 percent from a year earlier to 369,000 homes, With mortgage financing sales down nearly 20 percent to about 81,000.
In April alone, 86,000 homes sold, Indicating a decrease of 36 percent compared to the same month last year.
FAQs
Are there investment opportunities in Turkish real estate for foreigners?
Yes, The increase in interest from foreign developers and investors indicates that there are promising investment opportunities in Turkish real estate.
Does increased construction mean increased wages?
Yes, The report indicates an increase in labor costs in the construction sector, Which enhances the opportunities for increasing wages for workers in this sector.
Are there plans to diversify financing the real estate sector in Türkiye?
Yes, Inang Kabadai proposes setting up a specialized bank and allowing real estate investment funds to participate in ongoing projects as part of measures to diversify financing.
In the midst of political and economic events, the Turkish real estate market is emerging as a promising opportunity for foreign developers and investors. The slowing rates of increase in construction costs indicate an improved market balance, and calls to diversify financing and reduce land prices highlight the importance of promoting the growth of the sector and achieving its sustainability.
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