This has prompted many to invest in real estate to preserve their savings from rising inflation. With housing shortages, prices have soared.
People have chosen to buy real estate rather than keep savings in low-interest bank accounts. and cut Turkish Central Bank Interest rates at 9%, despite inflation, which according to independent economists reached 170.7% in November.
Turkish President Recep Tayyip Erdogan believes higher borrowing costs lead to higher prices, while most economists say that raising interest rates is the traditional antidote to inflation.
Foreign buyers have also flooded the Turkish property market, lured by the Turkish lira to lose about 28% of its value against the US dollar since the start of the year, as well as being hit even worse in 2021.
Turkey also offers the possibility of obtaining citizenship through the purchase of real estate.
Home sales to foreigners increased 20.4 percent between January and November, compared to the same period last year, according to the state statistical office.
Most of the buyers were Russian nationals, followed by Iranians, Iraqis and Ukrainians.
The crisis led to an increase in Turkey’s property price index of about 190% in September, compared to the previous year, according to central bank data.
The annual increase was a staggering 212%. Istanbulthe most populous city in Turkey.
Inflation and soaring home prices have also led to unprecedented rent increases.
Real estate agent Kinan Altinay told the Associated Press: "It’s the first time we’ve seen something like this, where we’ve seen prices go up so much, every year, we see a 20 percent or 25 percent difference, but this year, the difference is 200 percent.".
In an effort to keep prices in check, the government has imposed a 25% cap on rent hikes, but few landlords stick to the rule as they try to keep their profits on par with inflation.
Real estate attorney Idel Bora says the courts are overwhelmed with eviction lawsuits over rent disputes.
He said the civil magistrates’ courts, charged with hearing these cases, are under such heavy workloads that hearing dates are set after five to 10 months.".
“>
High prices have made finding affordable housing to rent or buy an uphill battle for many, especially the millions who earn the monthly minimum wage of 5,500 lire ($295) and who also struggle to cover food, energy and other expenses.
As rising construction costs and inflation have driven up global home prices, the housing crisis has worsened Turkey Because of the policy of lowering interest rates despite high inflation, which is the opposite of traditional economic thinking.
This has prompted many to invest in real estate to preserve their savings from rising inflation. With housing shortages, prices have soared.
People have chosen to buy real estate rather than keep savings in low-interest bank accounts. and cut Turkish Central Bank Interest rates at 9%, despite inflation, which according to independent economists reached 170.7% in November.
Turkish President Recep Tayyip Erdogan believes higher borrowing costs lead to higher prices, while most economists say that raising interest rates is the traditional antidote to inflation.
Foreign buyers have also flooded the Turkish property market, lured by the Turkish lira to lose about 28% of its value against the US dollar since the start of the year, as well as being hit even worse in 2021.
Turkey also offers the possibility of obtaining citizenship through the purchase of real estate.
Home sales to foreigners increased 20.4 percent between January and November, compared to the same period last year, according to the state statistical office.
Most of the buyers were Russian nationals, followed by Iranians, Iraqis and Ukrainians.
The crisis led to an increase in Turkey’s property price index of about 190% in September, compared to the previous year, according to central bank data.
The annual increase was a staggering 212%. Istanbulthe most populous city in Turkey.
Inflation and soaring home prices have also led to unprecedented rent increases.
Realtor Kinan Altinay told the Associated Press, “It’s the first time we’ve seen something like this, where we see prices skyrocket. Every year we see a 20 or 25 percent difference, but this year the difference reached 200.” percent”.
In an effort to keep prices in check, the government has imposed a 25% cap on rent hikes, but few landlords stick to the rule as they try to keep their profits on par with inflation.
Real estate attorney Idel Bora says the courts are overwhelmed with eviction lawsuits over rent disputes.
He said the civil magistrates’ courts, charged with hearing these cases, are under such heavy workloads that hearing dates are set after five to 10 months.
