The 2023 Elections and its Impact on the Turkish Real Estate Market
Understanding Turkey’s Trade Deficit and Energy Sector
The trade deficit in Turkey, coupled with factors like the Lausanne Agreement, impacts the <strong>Turkish real estate market</strong>. In January 2023, Turkey’s total imports stood at $33.606 billion. Tapping into underground resources could decrease imports by 26% and boost energy sector exports.
Two Types of Real Estate Investors in Turkey
Two primary types of real estate investors are active in Turkey. Some await the May 14th, 2023 election outcomes before finalizing investment plans. Others broaden their investments now, anticipating post-election results. The election’s outcome might influence real estate prices, but with 96% of properties being purchased by local investors, the impact may be limited.
The Effect of Election Results on Real Estate Prices
Will the election results impact the real estate market positively or negatively? Real estate prices in the Turkish market depend on supply and demand. The demand must increase for the prices to rise and vice versa. However, since 96% of the total number of sold properties is bought by local investors, the election results will have minimal impact on their investment plan.
The Role of the Winning Party in Turkey’s Economic Development
As a democratic country, the winning party will present its best to maintain its position in the next elections. This year is crucial for Turkey’s economy, and economic development will lead to an increase in demand for real estate, causing prices to rise.
Foreign Investors in the Turkish Real Estate Market
Foreign investors generally fit into two categories in the Turkish property scene. Some align with local investment patterns and even pursue Turkish citizenship to invest like locals. Others, even those with citizenship, see their stay as temporary. Election results can sway foreign investor sentiment, but constitutional protections typically safeguard their investments.
The Impact of Election Results on Foreign Investors
If the ruling party wins, there will be stability and safety, and they may consider investing after prices have risen due to local demand. However, if another party wins, chaos may prevail, leading to the expulsion of foreign investors and the expropriation of their property. This scenario is highly unlikely as the country has a strict constitution and a fixed system.
Turkish Citizenship and Real Estate Investment Profits
Since 2018’s citizenship-for-investment initiative, several investors have seen up to 40% profits. Yet, questions about potential price bubbles in the Turkish real estate market persist. Careful analysis is essential before committing funds.
Are you considering investing in the Turkish real estate market? Contact our expert team at Prestij Consulting today for personalized advice and guidance on making the right investment decisions.
