One of the most popular investment choices for Turkish locals is still real estate, according to the latest survey. Despite everything that has happened over the past year, Turkish real estate continues to be the investment that citizens have called the most satisfying.
Real estate satisfaction in Turkey
The survey entitled, “Turkey Household Financial Perception and Attitude Survey” was undertaken by the Presidency’s Finance Office and involved over 1,500 participants. The results from the survey showed that the average satisfaction rate from Turkish property investments stood at 81%, with 72% of the participants having 80% satisfaction.
When it came to the average satisfaction rate, real estate was followed by gold, which stands at 76%, then Turkish Lira in deposit accounts at 72%, foreign exchange at 71%, becoming a partner in or establishing a business at 67%, and finally participating in banking accounts at 65%.
Why not Gold?
Sector representatives explained that the reason people’s satisfaction with real estate is higher than the US Dollar and Gold is because of the value that is gained from the housing market. In the long run, real estate always gains value.
An expert said that Gold has always been a safe way of investing but went on to add that according to a study carried out by the finance office, real estate is the safer investment. The expert said: “As a matter of fact, when we look at the total house sales in the real estate sector, we have been European Champions for the last seven to eight years, which clarifies the situation.”
Price increase over the past ten years
According to data in January 2010, the house price index stood at 45.4, and by September 2020 it had risen to 146.7. An expert stressed that the CBRT (Central Bank of the Republic of Turkey) data revealed that there has been an increase of three times the average house price over the last ten years alone and went on to say that the increase in housing prices in developed countries has averaged just 50% in the past ten years.
The expert said: “This fact lies in the qualification of real estate being an investment tool offering higher satisfaction than other financial instruments in Turkey. As a result, the Turkish people said, ‘Neither gold nor dollars; real estate is the safe port.’”
“Despite the pandemic period, our sector ranked first in terms of investor satisfaction. The rise in Gold prices and foreign exchange during this period also did not prevent this satisfaction. Investors feel confident investing in real estate because they have no chance of losing.”
Official real estate data
The average house value in England according to official data stood at £160,000 in 2010 and in 2020 the same properties are now valued at £230,000. The average house price in Turkey in 2000 was £81,000 and now we can see that these values have increased threefold.
An expert said: “As a matter of fact, the rent multiplier is 36 years in the UK, and 21 years in Turkey. Opportunity and investment value are even higher. Therefore, it is a clear fact that real estate always provides a net and high return.