WHY PROPERTY PRICES IN ISTANBUL REMAIN RESILIENT AMIDST GLOBAL DOWNTURNS? 2023
WHY PROPERTY PRICES IN ISTANBUL REMAIN RESILIENT AMIDST GLOBAL DOWNTURNS
Navigating the intricate world of real estate can be complex, especially when examining the dynamics of property prices in Istanbul. Unlike many global cities, Istanbul’s real estate market, characterized by its resilience, offers a unique narrative. In times of economic downturns where real estate prices are expected to plummet, real estate prices in Istanbul have demonstrated an unwavering strength.
SOURCE OF DATA
Our insights are deeply rooted in the authoritative data provided by the Turkish Statistical Institute (TÜİK), ensuring that every piece of information is accurate and reflective of the current trends in real estate in Istanbul. The Construction Cost Index of May 2023 serves as a pivotal reference in our analysis.
THE RISING CONSTRUCTION COSTS
A meticulous examination of TÜİK’s official data unveils a consistent escalation in construction costs from 2015 to 2023. This trend underscores the steadfast nature of property prices in Istanbul, even amidst economic fluctuations.
TÜİK OFFICIAL DATA
THE RISING CONSTRUCTION COSTS
Construction Costs in Turkey (2015-2023)
Full Table of Construction Costs (2015-2023)
According to this data, there has been a consistent upward trend from 2015
to 2023. The index, which uses 2015 as a reference year with a base value of
100, shows that construction costs have more than doubled by 2023. This rise
in construction costs is a significant factor that contributes to the resilience of
property prices in Istanbul.
FACTORS CONTRIBUTING TO RISING CONSTRUCTION COSTS
Inflation and currency fluctuations have been pivotal in shaping the landscape of real estate in Istanbul. The augmenting costs of essential raw materials and the Turkish Lira’s volatility have directly influenced construction expenditures. Regulatory changes, marked by revisions in zoning and building codes, have further compounded these costs.
WHY PROPERTY PRICES IN ISTANBUL ARE POISED FOR GROWTH
Invest in Istanbul, and you immerse yourself in a world where the fusion of cultures and economic vibrancy is palpable. The city’s allure, marked by its geographical uniqueness and cultural richness, continues to magnetize both local and international investors.
HIGH DEMAND
The allure to invest in Istanbul is fueled by the city’s cultural diversity and economic potential. A surge in demand for both residential and commercial properties is a testament to Istanbul’s global appeal.
LIMITED SUPPLY
The city’s geographical layout and regulatory landscape have engendered a limited supply of properties, further elevating real estate prices in Istanbul.
INVESTMENT FROM ABROAD
The influx of foreign investment is a testament to the global confidence in the potential to invest in Istanbul. This international interest underscores the city’s ability to sustain and elevate property prices in Istanbul.
REGULATORY CHANGES
Changes in zoning laws, building codes, and land use policies can also
contribute to increased costs. These regulatory factors often make it more
expensive to develop new properties, indirectly affecting the existing property
prices.
WHY PROPERTY PRICES IN ISTANBUL WILL
INCREASE AFTER A SHORT PERIOD OF RESTING
HIGH DEMAND
Istanbul is a city that straddles two continents, making it a unique blend of
cultures and a hub for both tourism and business. The high demand for
property, both residential and commercial, keeps the market buoyant.
LIMITED SUPPLY
Geographical constraints and stringent zoning laws limit the availability of
developable land in Istanbul. This scarcity adds a premium to existing
properties.
INVESTMENT FROM ABROAD
Istanbul continues to attract foreign investment in real estate, thanks to its
strategic location and cultural richness. This constant inflow of foreign capital
helps to sustain property prices.
While property markets in other parts of the world may be experiencing
downturns, the unique factors affecting Istanbul—rising construction costs,
high demand, limited supply, and foreign investment—make it a resilient
market. As construction costs continue to rise, it becomes increasingly
unlikely for property prices in Istanbul to fall, making it a market that both
challenges and rewards investors.
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