The real estate sector is affected by countries' sanctions, interest rate decisions and political policies, but it is also a sector that sets its own trend and has its own flow outside of all these economic issues. When it comes to the balance of give and take, it would be extraordinary to expect the real estate sector to be unaffected by all economic dynamics, along with other sectors. Economic fluctuations on the one hand, and wars between countries on the other; so what can we expect in the real estate sector in 2023? What are the trends? What should we follow? In this article we will give you information on this subject.
CONTENTS:
1. IMPACT OF 2023 ECONOMIC CHANGES ON REAL ESTATE INVESTMENT
2. WHAT ARE THE FACTORS INFLUENCING THE CHOICE OF INVESTMENT LOCATION?
3. WHAT SHOULD WE PAY ATTENTION TO WHEN CHOOSING AN INVESTMENT LOCATION?
IMPACT OF 2023 ECONOMIC CHANGES ON REAL ESTATE INVESTMENT
Especially after the pandemic, we have personally experienced that countries suffer from economic fluctuations and high inflation, both as consumers and as investors. At the same time, if you add many macro problems such as the state of war with other countries and energy problems, it becomes much more complicated. In the end, it would not be wrong to say that we, as citizens of the country, are affected.
Inflation and interest rate hikes in many consumer groups have obviously affected the real estate sector. Potential investors are asking, "Should I invest, what is the right time to invest? What should I invest in?” You are trying to answer their questions. We help our investors both in this regard and with advisory services.
As we have already mentioned, despite all the negative problems in our country and in the world, real estate investment is still one of the most reliable investment instruments in our country. It can even be said to be more reliable than securities in this regard. In addition to what we have said, we would like to add the data from the IMF's "Tackling the Livelihood Crisis" report, which was published towards the end of 2022. According to this report, Turkey's growth rate is expected to be around 3.5 percent. At the same time, if we add population growth, internal migration and the rate of urbanization, this information gives us some signals.
WHAT ARE THE FACTORS INFLUENCING THE CHOICE OF INVESTMENT LOCATION?
Let's assume that you have decided to invest in the light of all this information. First of all, we provide services on www.pinaryucel.com to offer you the real estate you dream of in Istanbul, Ulus, Etiler, Bebek, Çeşme and Bosphorus line. Do not forget to contact us for investment, rental property search, selling and renting your existing property or for consulting services. Once you have made your decision, you can invest in real estate opportunities in the city where you live or you can invest in one of the world's largest metropolises such as Istanbul.
One thing we understand from our communication with hundreds of clients and their expectations is that people's need to belong somewhere is very dominant. Some people breathe in the chaos of the city, while others find peace in nature. Our expectations, needs and forms of happiness are different and this difference is natural. With our wide portfolio, we are happy to guide our investors to real estate that meets almost all expectations.
According to the 2023 Report of the Emerging Trends Europe Survey, prepared in collaboration with PwC and the Urban Land Institute (ULI), Istanbul is ranked 30th in the world with the highest expectations (in the real estate sector) with 0.26 points. In the same report, it ranks 29th in the world in terms of investment and 28th in the world in terms of renting. According to these data, we all know that Turkey is one of the first cities that comes to mind when it is mentioned.
However, the inflation that is being felt all over the world and the news that the European Union countries are going to declare a recession also create the expectation that it will affect the real estate market. It is more reassuring, both for investors and for us consultants, to act cautiously at this time, when it is right to maintain an optimistic perspective as well as realism.
This situation, which affects the whole world, makes ESG much more important for companies in the 21st century. With the climate crisis we are facing, environmental, social and governance issues are becoming more and more important in corporate decisions. Focusing not only on making a profit, but also on providing social benefits and protecting the environment has become one of the most important issues in the real estate sector.
When you decide to invest, there are 81 options for Turkey. So, how can we choose the right one among these 81 cities?
• Investors tend to invest close to where they live.
• In a populous, metropolitan city, your investment is much more likely to appreciate.
• Unfortunately, Turkey is a country surrounded by earthquake lines. For this reason, the durability of the real estate we will invest in becomes very important.
• The distance and transportability of the city we will invest in to nearby cities is very important.
• If you are making your investment to rent out your property, the rental income becomes a very important factor.
• The availability of universities in the city where you will invest is another important issue.
WHAT SHOULD WE PAY ATTENTION TO WHEN CHOOSING AN INVESTMENT LOCATION?
Having identified our city for investment above, it is now time to choose which region of this city to invest in. So, what are the selection criteria of investors in general?
• Proximity to the city center / distance from the city
• Proximity to transportation points (metro, bus station, metrobus, etc.)
• Desire to keep the distance between home and work short
• If you have or plan to have children, proximity to schools
• Reliability of the neighborhood
• Noise
• Neighborhood culture
As a result, the real estate market, which always maintains its potential both in Turkey and in the world, continues to grow compared to other sectors, even though it takes its share from the negative weather. In our country, the real estate sector is always the first that comes to mind among the reliable investment instruments from the past to the present. Istanbul, as the metropolis of our country, does not hold back from being a city with strong potential and making its investors smile.
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