Inflation in Turkey – The impact of inflation on real estate prices in Turkey and its investment value
What is the inflation and what is the impact of inflation on real estate prices in Turkey and its investment value. You will find the answers for these important questions in this article from Ebla Real Estate.
What is the inflation:
Inflation is no longer confined to Turkey or a specific country, but rather it is a general crisis that most countries suffer from, even those with strong economies.
Inflation simply means a rise in prices and costs. It can be translated as the decline of purchasing power over time. The rate at which purchasing power drops can be reflected in the average price increase of a basket of selected goods and services over some period of time.
Reasons of inflation:
Inflation arises when aggregate demand outpaces aggregate supply of goods and services.
Moreover, inflation occurs due to hikes in production costs arising from increases in the prices of commodities such as oil and food, or natural disasters. In such cases, aggregate supply decreases and consequently the general level of prices increases.
Furthermore, inflation occurs due to the economic blockade, such as what happened with Iraq during the crisis, for example.
Inflation arising from interest, such as what is happening in Turkey.. Due to the reduction in interest rates, which causes high inflation rates.
The impact of inflation on real estate prices in Turkey and its investment value:
The impact of inflation on real estate prices in Turkey. Undoubtedly, annual inflation has a negative impact on the real estate price index in Turkey in general for the foreign and local investors who depend on the Turkish currency and the Turkish local market.
It is worth noting that real estate not only in Turkey, but also in the whole world may be affected by inflation and the deterioration of currencies.
However, real estate prices do not decrease even if the currency decreases and its exchange rate is stable because the history of real estate investments proves this.
Despite the high real estate prices in Turkey in light of inflation, the demand for them has increased for many reasons, including:
- Investing in real estate in Turkey achieves guaranteed results and high profits.
- Real estate investment does not waste the capital.
- Real estate investment in Turkey saves the investor a lot of costs, efforts and time.
- The real estate boom in Turkey and the constant increase in its investment value
Thus, we talked about the impact of inflation on real estate prices in Turkey. For real estate services in Turkey, do not hesitate to contact Ebla Group
Edited by: Ebla Group Real Estate
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