Dollar increase in Turkey is still continuing without slowing down. Economists who expect it to rise further until the election date are waiting for initiatives to curb this situation. How does this increase in the dollar affect the real estate market? What’s the latest foreign investment in Turkey?
The US dollar has broken a historic record in Turkey. While the government is trying to take measures against this situation, it also continues to stand upright against the pressures and threats coming from abroad. President Recep Tayyip Erdogan demanded that the situation be stabilized, though it was instructed to increase interest rates stubbornly. Despite this, the economy did not fall into a collapse in the country. This situation only caused the depreciation of the TL.
The real estate sector was also one of the areas that were not much affected by this situation. Especially when foreign investors are taken into consideration, they are increasing the purchase of housing every month. According to previous month, there was an increase of 26 percent in foreign residential sales. In this regard, Yusuf Boz said: “We expect this increase in the dollar until the elections. Especially Arab investors are continuing to buy housing. But the situation is that European investors are anxiously approaching. Statements made from abroad and insecurity in the notes to Turkey’s economy cause European investors to stop buying houses.”
In the real estate sector, it is stated that the foreign portfolio will continue to gain momentum. The depreciation of TL inevitably leads foreign investors to Turkey. Mr. Boz also commented on that: “Especially with the early elections, the increase in the dollar is progressing very fast. We thought that the foreign investors would be a bit worried, but the investors did not lower the housing purchase. Domestic investors left housing after the election. Every election in Turkey before the occurrence of the same scenario did not lead Arab investors to step back from Turkey. We believe that if the elections continue in the same way, these situations will normalize” he said.
It also shows that it is not very permanent to have this activity in the short time. But even if the foreign investor buys the house, the domestic investor is also away from buying the house. In particular, investors who follow the steps taken by the government will decide whether to invest in the real estate sector in the coming days. PropertyTr General Manager Yusuf Boz said, “We anticipate that sales will be reduced compared to the previous month due to pre-election and Ramadan. However, we expect that stability will continue with the June 24th elections, housing sales will increase with the establishment of the government. Foreign investors will make their way through the decisions and steps that the government will take” he said.