General Real Estate Market in 2023.
I.General situation in Turkey.
Factors
affecting the market in 2023:
Two
major events marked this year. Earthquake and Election.
*With
the February 6 earthquake, it suddenly caused the markets to stop. All Turkish
Buyers, after the earthquake; They began to question the geological structure
of the region where the property is located, the earthquake resistance of the
ground, the strength of the building, the year of construction, and the company
that manufactured the construction. An increase was observed in the prices of
newly constructed properties in areas with solid ground.
Foreign
buyers looking for property in Turkey also ; They almost stopped asking
questions.
*5-6 months before the May
28 presidential elections, buyers generally waited for the election results.
Saying that if there is a change in the administration, there may also be a
radical change in economic policies. After the election, the government changed
the director of the Central Bank of the Republic of Turkey and the Minister of
Economy. And the economic management decided to rapidly increase interest
rates, in direct contrast to the interest rate reduction policy initiated in
September 2021. This caused bank interest rates to rise and Turkish investors
were confused for a while. Currently (24. March.2024) annual interest is around
55% in banks. This situation led some Turkish buyers to seek interest income.
Throughout Türkiye, the real estate market remains stagnant. High inflation
caused by the reduction of interest rates in 2021; It increased housing prices
considerably. Rising housing prices are expected to decrease to more reasonable
figures.
II. 2023 and 2024 for Kalkan?
The
Kalkan market always operates differently from the Turkish market. The reason
and logic for buying property is different. Important events that took place in
Turkey in 2023 of course affected trading.
There
were buyers for properties priced in the £250 000-500 000 range in 2023. 80% of
the sales made through my company were in this price range. In 2024, we
continue to be asked about properties with the same price range.
Alright; Who are the buyers?
After
the earthquake, inquiries from potential foreign buyers decreased considerably.
Turkish buyers also shifted to other investment instruments as bank interest
rates increased. For now, the high price of gold and the US Dollar seems more
attractive to them.
However,
a group of buyers still continues to be interested in Kalkan.
I
call them "GLOBAL TURKS". That is, those who live outside
Turkey and think "one day I will return to my country when I retire, let's
buy a nice house in a nice place." Their demand increased especially
during the "pandemic" period. It can be said that 50% of the houses
sold in the last five years were purchased by Global Turks. However, 30% UK and
European customers continued to buy. Around 20% was recruited by local Turks.
After that ? My expectations...
Considering
that an average of 250 properties have changed hands annually in Kalkan and its
surroundings for the last 5 years, we are talking about a niche and extreme
market. In other words, it is a market where demand always exceeds supply. This
has continued like this for the last 30 years.
Another
issue is that, in my opinion, 60-70% of the prices in real estate
advertisements are not real value. When we consider that the real market and
price is the number that enters the seller's account. I hope that Advertising
Prices will become more realistic and not exaggerated. After mid-summer 2024, I
think foreign buyers will start to be interested again.
KIND
REGARDS
ERGUN
DURAN
28.03.2024