Real Estate Market: 3 Key Factors Attracting Investors in Turkey

Turkey's real estate market is currently being influenced by interest rate hikes, construction sector delays, and global market trends, which are drawing the attention of investors. The Turkish Central Bank's (TCB) latest interest rate decision raised 10-year mortgage rates to 14.25%, accelerating the decline in residential property prices. However, according to data from the Real Estate Administration (Emlak-Koç), sales have declined by 12.3%, raising concerns among investors. Additionally, ongoing economic uncertainty in Europe has negatively impacted Turkey's real estate market. Property prices in Istanbul and Ankara have dropped by 8.7%, while prices in Antalya and Izmir have increased by 3.5%, attracting more investors to these regions. Lastly, the global chip crisis has influenced Turkey's construction sector, leading to increased demand for functional buildings. As a result, investors are now shifting their focus towards both new projects and functional buildings.

In Turkey's real estate market, the impact of rising interest rates and the chip crisis has led to key factors influencing investor decisions, including declining residential property prices and growing demand for functional buildings, suggesting a more balanced market development.