How Does the Turkish Lira Affect Real Estate Sector in Turkey
The Importance of the Turkish Lira in the World
The Covid-19 outbreak, which affected the whole world, caused uncertainties in the markets and caused a significant decrease in global economic activities worldwide. In all countries, central banks have followed expansionary monetary policies and governments have followed expansionary fiscal policies, minimizing the negative effects of the epidemic in the economic and social fields. With the introduction of the vaccine and the easing of restrictions, the economy has begun to revive.
During the epidemic period, the economies of all countries were adversely affected by the global contraction. In this process, the change in consumer habits, geopolitical developments, and uncertainty in the markets negatively affected the economy of Turkey. The fact that domestic inflation expectations did not match caused the Turkish lira to depreciate against the dollar.
The Turkish lira, which lost value against the dollar, started to gain value again with President Recep Tayyip Erdogan's strong and determined statements on price stability. In his speech, Erdogan stated that they are preparing structural reforms in important areas such as increasing the depth of financial markets, increasing the quality of public expenditures, improving the investment environment, preventing informality, and good governance.
The Turkish lira continues to appreciate against the dollar, with market-friendly statements regarding the new period in the Turkish economy. Thanks to the determined and strong attitudes in the fight against inflation, the place of the Turkish lira is positively differentiated from its peers in the world market.
Factors Affecting the Real Estate Sector
For most people, real estate represents a significant part of their assets. This is especially true for people who have owned a house in developed countries. The size of the real estate market has made the market an attractive sector for many investors. However, there are a few important points to consider making a successful and profitable investment.
- To make a successful and profitable investment, you should definitely work with an expert real estate consultant. An expert real estate consultant protects you from making a bad investment and making a loss.
- One of the most important factors in real estate investment is location. You should know the location of the real estate you are going to buy and have a good command of future investments. If you are unfamiliar with the region you want to invest in, you should definitely get support from an expert.
- You should determine the type of real estate you want to invest in. While land and commercial real estate provide good profits in long-term investments, a home investment in a good location can be preferred to provide short-term profits.
- It is necessary to know which factors drive the real estate sector for a successful investment. 4 important factors are affecting the real estate sector.
The 4 important factors driving the real estate market
Demography is population science. Demography is a branch of science that examines the population structure, status, and dynamic characteristics of the world or a country. Demographic information, which is often overlooked, is an important factor in showing how real estate is priced and what types of real estate people demand by age. Major demographic changes such as rising birth rates are affecting real estate demand and consumer trends.
Changes in interest rates in a country can greatly affect the purchasing power of a buyer. The lower the interest rates, the lower the borrowing rate. This means high demand for real estate investment. Interest rates also have a major impact on real estate investment trusts and equity investments in real estate.
Government policies play an important role in determining property prices and demand in general. Grossing-up, incentives, and tax rates are some of the ways the government can temporarily increase the demand for real estate. If you want to identify changes in supply and demand, spot false trends, and invest in lucrative real estate, you need to be aware of current government incentives.
The general state of the country's economy is the most important factor that directly affects the real estate market. In general, economic data measured by economic indicators such as gross domestic product, employment data, manufacturing activities, etc., and the real estate sector are in a positive relationship with each other. When one rises, the other rises, and when one falls, the other falls. The real estate market is heavily affected by economic changes.
How does the Turkish Lira Affect Real Estate Sector in Turkey?
The temporary depreciation of the Turkish lira in the international arena has increased the interest of foreign investors in Turkey. The times when there is an increase in exchange rates in Turkey are the best investment times for foreigners who want to buy real estate in Turkey at affordable prices. Buying a house in Turkey, which is a developing country, offers an investment opportunity that will make a lot of profit in the future. Turkey is growing and getting stronger every year with its strong and stable economic policy.
You can easily acquire Turkish citizenship by real estate investment in Turkey and gain the advantages of being a Turkish citizen. A foreigner who acquires Turkish citizenship also holds a Turkish passport and can travel to 110 countries without a visa.
You need to work with a professional and experienced real estate consultant to own real estate with a rapidly increasing value in Turkey and to gain high profits. With its experienced and professional sales team, Diyar Turk Real Estate offers the most suitable real estate investment options in Turkey for your needs and enables you to make a profitable investment. Allows you to make the most suitable investment in the right region with its expert real estate consultants. Diyar Turk Real Estate is always ready to help with its before-sales and after-sales services.
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