The relative stagnation, which began with the uncertain period prior to the June elections, has come to an end with the revelation of the net preferences at the 1 November elections. Now, all of the investments which were on standby until this time will come to fruition. To illustrate, following the reiteration of the confidence felt in the economy and the decision to continue down the same path, the dollar rate quickly fell to 2,84. This clear picture will cause foreign nationals, who were seeing Turkey as a real estate paradise until today, to invest with renewed confidence. When we look at the total figures, we can see that 5 billion dollars worth of sales have been made to foreign nationals in the first nine months of this year. Constituting only 1,2 percent of total property sales, this figure will pick up even more speed with the rapid realization of investments in different regions in 2016, and reach close to 5 percent of the total.
Turkey becoming a catalyst
Turkish real estate market is no longer just a part of globalization; it is taking serious steps towards becoming a catalyst directing the whole of it. It has been observed that an important proportion of these sales will be in untouched regions where investments are continuing. Sales to foreign nationals will no longer be concentrated in the summer resort regions, as in previous periods. Areas expected to rise in value will also be the focal point of the investments.
Therefore, the points to be re-shaped by colossal investments, primarily Yalova and Çanakkale, will be the main areas where foreign nationals will take an interest in their movements within the property market. The important point here is the preparation process. Everything falling into place within the economy will occur after a brief period of preparation. The economy needs to get rid of the lethargy experienced during the standby period, and move into the process of heating up in order for fast developments triggering each other with a domino effect to take place. The positive developments in the dollar exchange rate are the first sign of this.
More than half of real estate sales within Turkey are realized using loans. Now, a fast fall in loan interest rates in order to increase liquidity will result in resurgent sales. This resurgence will, in turn, result in money returning to the economy in order that investments can be realized. Sales to foreign nationals are among the fundamental points of this resurgence. Incentives for sales to foreign nationals, which will hold a volume of 10 billion dollars in 2016, will benefit both the economy and the sector.