Turkey inflation Rate – And its impact on the real estate sector in Bursa
In this article from Ebla Real Estate, we will talk about an important issue that concerns many, which is the issue of annual inflation in Turkey, and how it affected the real estate market. In addition, we will talk about Bursa city and the recovery of the real estate market in it despite the annual inflation in Turkey.
An introduction:
There is no doubt that inflation in Turkey had negative effects on all investment fields and economic sectors. However, these effects varied relatively from one sector to another and from one region to another. In this article from Ebla Real Estate in Bursa, we will talk about the impact of the annual inflation on real estate in Turkey.
The annual inflation in Turkey:
Everyone knows that the Turkish Lira has been experiencing a decline in recent years in addition to the instability of exchange rates and the continuous fluctuation of the Turkish currency.
This resulted in a rise in inflation rates in the country. And these negative repercussions are due to political, economic and military factors.
Moreover, one of the reasons that contributed to the annual inflation in Turkey is the increasing reliance of private sectors and companies on external financing.
According to the data of the Turkish Statistics Authority, the inflation rate in 2021 reached 21.31%. As for the beginning of this year 2022, Turkey’s annual inflation rate has surged to a 20-year high of 48.7%, affected by unconventional interest rate cuts and the significant depreciation of the Turkish lira in the past few months.
Therefore, consumer prices increased by a different rate of more than 22%, and product prices by 49%, and in some materials by more than 200%, starting from last January, compared to the rates of the last 12 months.
The strength of the Turkish economy:
The economy of Turkey is an emerging market economy, as defined by the International Monetary Fund. Economists and political scientists define Turkey as one of the newly industrialized countries in the world.
Moreover, Turkey has the 20th largest nominal GDP in the world, and the 11th largest GDP by purchasing power parity. Turkey is a founding member of the Organization for Economic Cooperation and Development and the G-20 major.
Furthermore, Turkey is an industrialized country, it has a well-developed automobile industry, and is famous for the shipbuilding industry.
In addition, it has well-known electrical brands, and is one of the most important manufacturing companies of white goods, consumer electronics and new technologies. Additionally, agriculture and livestock have a very important role in the national economy.
Therefore, the Turkish economy has reached about 5 trillion Turkish lira in 2020, equivalent to 720 billion dollars. This is according to the statistics of the World Bank database.
On the other hand, Turkey’s merchandise exports exceed $200 billion annually. In 2021, it reached a value of $211 billion.
How has annual inflation affected real estate investment in Bursa and Turkey in general?
To answer this question, we will clarify several basic things. Undoubtedly, annual inflation has a negative impact on the real estate price index in Bursa and 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.
As for foreign investments in the real estate sector in Turkey, the foreign investors were not affected by the annual inflation in Turkey; This is because they deal and trade in foreign currencies.
Based on the above, the sale of real estate to foreigners in Turkey increased by 24% compared to the same period in 2021.
Real estate sales to foreigners form the basis of investments in Turkey. In addition, the data of the Turkish Statistics Authority show that 58,576 housing units were sold in 2021.
Real estate in Bursa:
Real estate investment in general, regardless of the nature of the economic conditions, is extremely necessary and beneficial, as real estate plays a major role in securing the financial future.
The real estate market in Bursa is witnessing a boom and demand despite the deterioration of the Turkish lira and Corona pandemic.
There are several factors that qualify Bursa to be a leader in real estate investment:
- The geographical and strategic location between Istanbul and Ankara, has formed a structural basis and has given a flexible and dynamic character to this city.
- The agricultural and environment, the fascinating green nature in addition to the active tourism element.
- Infrastructure and the prosperity of its economy and service facilities.
- The historical value, as the city of Bursa inherits a civilization that contains intellectual, practical and artistic heritage.
- The availability of job opportunities in addition to the population density in the city of Bursa,
- which is the fourth most populous city in Turkey,
- Continuous and guaranteed profits and returns and the increasing demand for real estate investment in Bursa
- The economic and social stability.
- Undoubtedly, the possibility of obtaining Turkish citizenship through real estate investment.
Thus, we presented an important article which answers many questions that concern many local and foreign people in Turkey.
Moreover, in this article from Ebla Real Estate in Bursa, we talked about the annual inflation in Turkey and its impact on the real estate sector in Bursa and Turkey. We also talked about the strength of the Turkish economy.
Edited by: Ebla Group Real Estate
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