Cast your mind back just a couple of years, and consider this: what would have been the ultimate lockdown savings investment? Cryptocurrencies? Shares of Tesla and other tech giants? Or perhaps real estate in a country grappling with rampant hyperinflation and economic turmoil? If you didn’t place your bets on the latter, it’s time for a serious rethink.
Flashback to March 2021, and those who dove into Tesla’s shares saw a meager 3% gain over two long years. Amazon shareholders, on the other hand, had to endure a worrisome 17% drop in their investment value. Spare a thought for cryptocurrency enthusiasts too—Bitcoin’s value against the US dollar took a gut-wrenching plunge of over 55%.
Now, here’s where the plot thickens: those shrewd enough to invest in Turkish real estate during that same March saw their fortunes double. Hold onto your hats, because in just one year—2022—the average house price in Turkey skyrocketed by a jaw-dropping 75% when measured in the US dollar.
The script was flipped by Turkey’s audacious monetary maneuvering. The Turkish central bank went against the grain, slashing interest rates instead of hiking them to curb the surging inflation, ushering in a bout of proper hyperinflation that sent consumer prices soaring towards the triple-digit mark in annual percentage growth.
But lo and behold, with the arrival of Hafize Gaye Erkan, the 43-year-old Harvard graduate at the helm of the central bank, the tables turned. The bank’s policy made a U-turn, taming inflation to a more reasonable 48%.
As the Turkish lira tumbled into the abyss, Turkey’s allure grew stronger for those who had embraced remote work post-pandemic. With their salaries riding the waves of British pounds, euros or dollars and living expenses grounded in liras, expatriates who flocked to Turkey hit the motherlode.
The astute minds at Housearch.com, a prominent property portal, have done the math: from budget living at $1,000 a month in Antalya, nestled near sun-kissed beaches, to a more lavish lifestyle at $2,000, it’s clear this paradise comes in all shades of opulence.
Is it any wonder, then, that official statistics herald a staggering 15.2% surge in property sales to foreigners in 2022 alone? Analysts predict this rocket ride won’t fizzle out anytime soon. While the pace might ease in prime spots like Istanbul, Izmir, and Bodrum—just as rent indicators suggest—for other charming coastal havens, there’s still a bounty to be reaped.
The property compass is steering buyers towards the shimmering waterfront, embracing gems like Antalya, Kusadasi and Kalkan. Despite tremors of a significant earthquake rocking parts of Turkey, it did little to dent the buoyant real estate trajectory. With President Recep Tayyip Erdogan’s reelection dousing lingering uncertainties, foreign investors are basking in newfound confidence.
Developers aren’t far behind, riding the tide of optimism. International real estate heavyweights are recalibrating their focus onto Turkey. As housing prices gallop faster than construction costs, driven in no small part by global demand, fresh development projects are poised to beckon international investors. The curtain rises on a spectacular act of economic revival!