One of the most significant changes of the last five years is COVID-19 pandemicits impact on the real estate market. The obligation to stay at home and the transition to a remote working model during the pandemic has increased the demand for housing. The demand for flats in big cities has shifted to larger houses with gardens, away from city centres. During this period, there were significant increases in real estate prices in rural and suburban areas.
Changes in interest rates, Changes in interest rates have directly affected the real estate market. With the decrease in interest rates in 2020, the demand for housing loans increased, which increased housing sales. However, the increase in interest rates in 2021 and 2022 increased loan costs and reduced housing purchasing power. These fluctuations have made price stability in the market difficult.
Turkey's strategic location and the opportunities it offers continue to attract the attention of foreign investors. Regulations granting citizenship rights to foreigners, which were put into practice in 2018, have increased the interest of foreign investors in the real estate market in Turkey. Property purchases by foreigners have increased significantly in cities such as Istanbul, Antalya and Izmir. This has caused prices to rise, especially in the luxury housing segment.
There have been significant increases in construction costs in the last five years. Especially the fluctuations in exchange rates and the rise in raw material prices affected the construction sector. These increases in construction costs caused the prices of new housing projects to rise, which created price pressure in the housing market. Construction companies have had to develop various strategies to balance these cost increases.
In recent years, digital transformation has also manifested itself in the real estate sector. Real estate platforms and mobile applications have facilitated and accelerated real estate buying and selling processes. Technologies such as 3D tours, virtual reality and drone shooting, It allowed potential buyers to evaluate properties without seeing them on site. These technological developments have made the sector more transparent and accessible.
The changes experienced during this period indicate that the Turkish real estate market is dynamic and constantly evolving. The pandemic, economic fluctuations, and technological advancements have been key factors shaping the market.
