In the coming 2023, the housing market as a whole will normalize, experts believe. Soner Kelesh, a member of the board of directors of Motto Turkey, said that with an increase in the volume of construction of new housing in 2023, a balance of supply and demand will be achieved, and prices for residential real estate in the secondary market will become "more reasonable".
Turkey's construction sector continues to be one of the "locomotives" of the local economy, being among the leading sectors of the country in terms of GDP. 2022 was marked by a slight decline in demand; one of the reasons for this is global economic problems that could not but affect the Turkish economy.
That is why last year became very difficult for her, due to the strong influence of negative factors on a global and local scale. These were the rapid appreciation of the currency, and inflation, which "knocked down" the socio-economic balancing, and something else.
The main reason for the rapid rise in housing prices in 2022 can be described as a sudden increase in demand in a market where supply is declining. Which also led to an increase in rents.
Developers also had a hard time for another reason: private banks "turned off the tap" for available loans, with rare exceptions.
Anyway, it is expected that in 2023 the purchasing power of the population will increase again, as high inflation, according to the assurances (and goals) of the government, will first stabilize and then decrease. The secondary market will be the first to show a downward trend in prices.
Well, thanks to the nationwide social project "My New Home", the excitement in the market of new buildings will also subside. In addition, some segments of workers, especially white-collar workers, will have the opportunity to increase their incomes, which, coupled with the planned low loan rates, will presumably stimulate their purchasing power even outside the "preferential" pool of apartments.
So, the sector, experts hope, is returning to the old days. In the housing market for foreign investors, it is expected that 2022, which ended with a record number of transactions, will be followed by an even more successful 2023: in particular, Turkey remains in the top of Russian requests for foreign real estate. Well, the inflow of foreign currency to Turkey through real estate investments will allow the country to further strengthen its position in the world market.
Recall that middle-income families are also waiting for good news in the coming year.