Inflation in Turkey: An Unparalleled Investment Opportunity

Inflation in Turkey: An Unparalleled Investment Opportunity

Seek opportunities amidst chaos.

The title may capture attention in an unusual manner, yet it is well-known that periods of economic challenges can be sources of wealth creation, with every crisis hiding a golden opportunity.

This article delves into key aspects of Turkey's economic situation, which demands a deeper analysis:

Firstly, significant inflation in Turkey:

The Turkish economy is experiencing a notable increase in the prices of goods and assets, including real estate, leading to a substantial annual rise in their value.

Secondly, the depreciation of the Turkish Lira:

Holders of the Turkish Lira are losing a portion of their wealth and purchasing power with each passing day, as a result of the local currency's depreciation.

Thirdly, the very high interest rates:

At the time of writing, the interest rate set by the Central Bank of Turkey has reached 45%, and it may exceed 60% when obtaining bank loans, negatively impacting buying and selling activities.

Fourthly, pegging prices to the dollar:

Particularly in the real estate sector, construction companies tend to peg sale installments to the dollar to protect the value of their sales from currency fluctuations.

From the above analysis, it is clear that inflation and high interest rates are putting significant pressure on the Turkish economy. However, the inherent strength of the Turkish economy, which will help overcome the current crisis, is highlighted by its diverse industrial sectors, tourism, and oil discoveries.

Given the current opportunity, investing in real estate, especially through instalment plans in Turkish Lira, presents an excellent investment option. Despite the scarcity of instalment offers in Lira, some construction companies provide these options, offering the possibility to pay between 35% to 50% of the property value upfront and instalment the rest interest-free in Turkish Lira.

Fourthly, pegging prices to the dollar:

The benefits of seizing this opportunity include:

  • The value of the property increases with rising inflation.
  • The total value of the property purchase decreases for you as a buyer with the depreciation of the Turkish Lira, and the decrease in the value of the installments.
  • Benefit from the improved economic situation upon completing the installments, which increases the market value of the property and yields significant profits.

Investors should look beyond the current challenges, leveraging the valuable investment opportunities presented by the tough economic conditions, especially in the Turkish real estate market. These opportunities require strategic vision and the courage to move against the general trend to achieve significant long-term profits.

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Buying Property in Turkey! Is This the Right Time or a Risky Investment to Avoid?

Buying Property in Turkey! Is This the Right Time or a Risky Investment to Avoid?

The real estate market in Turkey is currently facing numerous challenges, starting with an economy impacted by a massive earthquake that hit the country last year, alongside high inflation. This has led to interest rates being raised to a record high of 50%, resulting in a near-total halt of the real estate sector. Additionally, recent legal changes, such as raising the minimum investment for Turkish citizenship to $400,000 and for real estate residency to $200,000, have caused a decline in the number of foreign investors.

To answer the question: is now the right time to buy property in Turkey, or not? We need to analyse two aspects: the internal Turkish situation and the regional and global outlook.

Groundbreaking Reforms to Simplify Lease Procedures in Turkey

Groundbreaking Reforms to Simplify Lease Procedures in Turkey

The Turkish Ministry of Treasury and Finance has announced its readiness to introduce a new law requiring rental contracts to be signed electronically through the e-Government portal, "e-Devlet." This initiative aims to simplify and expedite the rental process between property owners and tenants, with implementation expected in the near future. Licensed real estate agents will also be able to use this system by the end of the year.

The electronic lease contract system will be introduced in two phases: in the first phase, property owners and tenants will be able to complete rental agreements directly through the "e-Devlet" portal, where the owner creates the contract, and the tenant approves it electronically. The second phase will enable licensed real estate agents to prepare contracts and send them to both the owner and tenant for approval through the portal.

Minister of Treasury and Finance, Mehmet Şimşek, stated that these reforms represent "fundamental changes aimed at reducing bureaucracy, saving citizens time and effort, and facilitating access to property valuation information across Turkey."

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