A long-term investment
Investment in the Real Estate market, and especially in Lands, is characterized by being a long-term investment, since it is a constant ownership base investment in long life fixed assets, that does not entail a Depreciation factor, financially speaking. additionally, and historically, lands’ prices always increase with time. Moreover, the negative effect of economic crises over the Lands’ market usually is limited, since the lands prices are being slightly affected and for a short period of time, before recovering again and continue their upward line direction.
Prices consistently rising
Numerous elements and causes have contributed to the rise in real estate prices in Turkey throughout the years. The increasing demand for real estate purchases in Turkey, seen year after year and month after month, is one of the most notable things since the date this sector witnessed a remarkable recovery compared to other sectors. In addition, figures from the real estate sector show that prices are consistently rising and that there may be a chance now to own property and make money, rather than waiting and delaying.
2021, saw a clear demand for real estate purchases in Turkey after the country recovered from the Corona pandemic. As a result, this year was named the year of real estate in Turkey, and the situation persisted through the end of 2022, with anticipations that 2023 will also be a notable year for this industry.
The Turkish lira’s struggles
The Real Estate investor understands that the best investment possibilities arise when demand for investments drops due to issues and variables that have nothing to do with real estate investment.
These economic variables include the Turkish lira’s struggles and their effects on other industries. The Turkish lira’s volatility played a significant role in driving up real estate prices, it encouraged foreign investors to invest in real estate in Turkey in order to benefit from the local currency’s decline against other currencies.
The issue of inflation is one of the factors contributing to the increase in real estate prices. Although inflation is a global issue that is not limited to Turkey and is proportional to exchange rates and the growth in demand for any product.
When viewed in light of other factors, the situation in Ukraine can be understood in terms of developments that significantly increased oil prices and encouraged investors to place their money in safe havens like real estate instead of starting businesses that may cease if circumstances in Ukraine change.
Real estate sales in Turkey
Real estate sales hit their peak in 2020 with 1,499,316 properties sold, up from 1,375,398 in 2018, or a rise of around 9%.
The pace of growth in real estate prices in Turkey “broke records during the post Corona epidemic era, as it varied from 100 to 300%, depending on the area and city.
The increase in real estate prices in Turkey exceeded for the first time the value of the increase in the dollar exchange rate of the lira, referring to the record high costs of building materials and also the limited land officially licensed for construction, especially after the decline in the value of the Turkish lira.
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Over the past few years, the price of agricultural lands planted with walnut in Turkey has appreciated significantly, as demand for walnuts and other nuts has risen globally. According to the Turkish Statistical Institute (TUIK), the average price of agricultural land in Turkey increased by 24.8% in 2020, compared to the previous year. This increase was largely due to rising demand for agricultural land for the cultivation of high-value crops like walnuts.
In the Black Sea region for example, in the province of Ordu, which is one of the main walnut producing regions in Turkey, the average price of agricultural land increased by 38.5% in 2020, compared to the previous year. Similarly, in the neighboring province of Giresun, the average price of agricultural land increased by 37.7% in the same period.
The appreciation in the price of agricultural land planted with walnut in Turkey is expected to continue in the coming years, driven by the increasing global demand for walnuts and other nuts, as well as the favorable climate and soil conditions for the cultivation of walnuts in Turkey. Therefore, investing in agricultural land planted with walnut in Turkey could be a lucrative long-term investment option.