Rise in US dollar increased number of foreign investors in real estate property.
According to Daily Sabah newspaper As the US dollar proceeds rate against the Turkish Lira, various sectors have started to judge the effects of it. Real estate sector agents anticipate foreign investors interest to advance since the prices will not hike in the short term.
Claiming that the rise in the dollar will not cause a change in property prices, sector representatives said that overseas investors have benefited from the situation and for that reason housing sales to foreigners will increase during this period. Real estate sector representatives also noted that foreign investors are drawn to those fluctuations, this situation has been lately reflected in sales offices.
Talking to Anadolu Agency, Istanbul Constructors Association (INDER) Chairman Nazmi Durbakayım said the increase in the foreign exchange will change the short-term portfolio selection of the investment property purchasers.
Nazmi Durbakayım said the property investment assets will simply return to the real estate sector . Profit comprehension will be certain with either the activation of the unseeable hand in free market conditions or the government’s intervention to the increase in the foreign exchange .
Chairman Durbakayım emphasized that property prices in Turkey are not foreign exchange arranged like they had been several years ago hense it is impossible to refer an unreal price rise in housing.
Durbakayım declared that the price increase can only be noticed in foreign exchange indexed sales on boutique projects or very luxurious developments , underlining the fact that these are limited housing projects. Also adding that these project owners are taking preventative measures such as protecting potential customers by fixing foreign exchange rates at a certain level since they forsee that the rise in the current artificial foreign exchange will be fair.
President Melih Tavukçuoğlu Anatolian Side Building Contractors Association (AYİDER) has said that they have evaluated the increase in the dollar as a favorable opportunity for overseas investors, and each real estate property purchased by a foreign investor has gained in value.
Melih Tavukçuoğlu said “For example, while a house of $100,000 was worth $300,000 before, it will be equivalent to $350,000 to $400,000 today due to the exchange rate, thus the house will be actually purchased for a cheaper price with higher worth.
Emphasizing that a greater flow of foreign exchange could be accomplished in Turkey in terms of the construction sector, Tavukçuoğlu stated therefore, the sector should experience focus on selling to overseas buyers in this period by generating an long-awaited increase in the sale of foreign property and supplying a important flow of money to Turkey thanks to the foreign exchange inflow.
Makro İnşaat Chairman Ercan Uyan said the special offer campaigns in the domestic market improved the sector, but the prices have maintained a balanced level for a long time due to the inconstancy in the market.
Uyan said, this situation has been seen and reflected upon in the sales offices, the foreigners have come to the offices in more crowded groups than ever.
Indicating that this position suggests that the dollar has reached its intensity point in terms of the foreigners who know the international monetary markets well. Ercan Uyan said the building costs have also risen as well with the increase in dollar, underlining that since the overseas investors are knowledgeable of the present situation, they want to take advantage of the current prices before the market increases them.
Demir Insaat Chairman Hamit Demir said they are dissatisfied with the increase in dollar, wanting the foreign exchange rate to drop to lower levels.
According to Demir, the situation has rised the foreign investors demand , and the property prices stay balanced but the dollar is increasing in value. Hamit Demir said they have made up to a 10 percent reduction cost in dollars for the past couple of weeks, this position has offered an dominance for Turkey in terms of the foreign exchange arrival from the foreigners.
Stating that they do not want foreign exchange to continue higher levels as they want to sell houses, Demir said he hoped this situation does not proceed but if it does, it will increase the number of foreign investors in housing by 15-20 percent.
