Real estate has long been one of the most popular investment choices for locals in Turkey. According to a latest survey, real estate remains the investment instrument with which citizens are the most satisfied.
Conducted by the finance office of the presidency, the “Survey of Household Financial Perception and Attitude in Turkey” involved 15,041 participants and the results were released on Monday.
The average satisfaction rate for real estate investments was 81%, with 72% of respondents having more than 80% satisfaction, according to the survey results.
In terms of average satisfaction rating, real estate was followed by gold at 76%, Turkish lira term deposit accounts at 72%, foreign exchange at 71%, starting a business or partnership at 67%. % and 65% participating bank accounts.
Industry representatives explained that people’s satisfaction with real estate is higher than gold and the US dollar due to the earned value in the housing market.
They said real estate has always gained in value over the long term, noting that individuals also quickly cash in on this investment due to the need for shelter.
Gold has been called a “safe harbor” around the world, said Mahmut Akbal, head of the Fuzul group. However, Akbal said, the finance bureau’s study revealed that real estate is indeed a “safe harbor” in Turkey.
âIn fact, when we look at the total house sales in the real estate sector, we have been European champions for seven to eight years, which clarifies the situation,â Akbal told Anadolu (AA) agency.
Triple price increases over the past decade
The house price index, which stood at 45.4 in January 2010, reached 146.7 in September 2020, according to the data.
Akbal pointed out that data from the Central Bank of the Republic of Turkey (CBRT) shows that average house prices have more than tripled in the past 10 years alone.
House price increases in developed countries have averaged 50% over the past 10 years, Akbal said.
“This fact lies in the qualification of real estate as an investment tool offering greater satisfaction than other financial instruments in Turkey,” Akbal noted.
âAs a result, the Turkish people said: ‘neither gold nor dollars; real estate is a safe harbor, “” he said.
“No chance of losing”
Ãzyurtlar Holding Chairman Tamer Ãzyurt says the real estate and construction industry ranks highest in demand as the most profitable and reliable investment tool in every period. .
In addition to the premium that real estate provides in the short and long term, zyurt suggested that it doesn’t come with losses easily. Its status as a promising investment tool has a lot to do with it, he noted.
âDespite the pandemic period, our industry once again ranked first in terms of investor satisfaction. The rise in gold and currency prices during this period did not prevent this satisfaction either. “said zyurt.
âInvestors feel confident in investing in real estate because they have no chance of losing,â he said.
Low risk investment tool
Nef board member SelÃ§uk Ãelik said financial assets such as currencies, stocks, interest rates and gold carry risk.
âReal estate, on the other hand, is the most precious need because it is an investment tool with very low risk that does not make its investor lose in the medium and long term. At the same time, it is an investment that delivers a return on two different fronts through both increased value and rental income, âÃelik said.
He added that real estate appreciated faster in developing countries but noted that even in developed countries it is the most important investment tool due to the high demand.
For example, according to official data, the average home value in the UK, which was 160,000 pounds ($ 212,151) in 2010, reached 230,000 pounds in 2020, Ãelik said.
âThe average home value in this country in 2000 was 81,000 pounds,â he noted. “So we see that a house bought in 2000 has appreciated by three.”
In developing countries, Ãelik said, appreciation is even faster.
âIn fact, the rent multiplier is 36 years in the UK and 21 years in Turkey. The opportunities and the value of the investment are even higher. Therefore, it is clear that real estate still offers a net and high return, âhe said. Noted.
Conscious and research-driven investment
On the other hand, Helmann YapÄ± Chairman Selman ÃzgÃ¼n said that the continuous appreciation of housing in Turkey for many years has continued due to recent cuts in exchange rates and interest rates.
“Now income-oriented, conscious and research-oriented real estate investments are being made. Special advisers and fund managers are working on this issue,” zgÃ¼n said.
The growth in value and the ease of tracking, along with the fact that there are no ups and downs like in other investment tools, makes real estate a reliable port. he adds.
ÃzgÃ¼n said that the past experience increases investor satisfaction and allows investments in this area to continue.
He said that tracking real estate investments is much easier than tracking other tools, which also increases satisfaction.