Coronavirus: Impact on the Turkish Real Estate Market

The talk about the year 2020 for the whole world has become linked to Corona, this epidemic that negatively affected many sectors. Still, at the same time, it was positive for some others, for example, the market for selling products online did not reach its peak in the year 2020, The real estate market in Turkey would not have shown the strength of its resilience in the face of crises had it not been for Covid-19.

How has the real estate market in Turkey faced the Corona crisis, the plans set by the Turkish government to enable the continuation of real estate sales, and the future of the real estate sale sector in Turkey after the evacuation of the Corona pandemic?

All these questions and more, we will get acquainted with their answers in the next article, which will provide the analysis and statistics of the reality of the real estate sector in Turkey after the end of more than half a year of the ongoing crisis.

As all countries of the world, Turkey, since the first cases of infection with the virus coming from China appeared in March 2020, began to apply strict measures for more than 100 days. 

Turkey dealt with the epidemic smartly and wisely by taking all necessary measures to reduce the spread of the disease. And Turkey recorded a record decline in the number of injuries and announced that it was able to limit and control the epidemic.

Even at the height of the strict measures, Turkey recorded a continuation of real estate sales, and for this, it devised alternative solutions, which we will detail later.

How much real estate has Turkey sold since the outbreak of the Corona epidemic?

In the following table, the Turkish Statistics Institute determined the volume of real estate sales in Turkey since the Corona epidemic:

Economic experts' comments on the volume of ff since Corona's start indicate that record numbers were recorded in some months, such as March and June, which are the highest in years. Statistics indicate that Turkey's real estate sector was more durable than all expectations due to people's constant need for housing.

How has the real estate sector in Turkey remained resilient to Corona?

It is unrealistic to say that the real estate sector, which has been booming and continues to rise for years, witnessed the same pace during Corona's time. Still, it showed improvement and superiority in some months. It withstood to ward off the paralysis that many expected in other months, according to the analyzes of economic experts, mainly residential real estate that maintained its sales compared to real estate Commercial offices, stores, and others.

The real estate sector in Turkey and apartments for sale in Istanbul remained steadfast for several reasons, most notably:

• The continued need for housing even in the time of Corona: Housing is an indispensable need for a person, even in times of crisis, so what if the house provides the conditions for immunity from the emerging virus, and protection from the epidemic. The statistics have shown that even in areas that are not suitable for living, the person remains seeking Owning and buying housing, what if the matter is related to a country like Turkey that is characterized by its great attraction to those who want to own real estate, as the population density in Turkey exceeds 83 million citizens and more than 7 million foreigners have chosen to live and settle.
• Turkey's population has increased dramatically during the last year, as most parts of the country recorded more than one million new births, bringing the population to close to the threshold of 84 million people. Thus the increasing need of the population for new and broader homes, so talking about the increase in population numbers means liberalizing the real estate market From the specter of a recession that may affect it in times of crisis or outside it, and from it the demand to buy or rent best real estate in Turkey.
• The number of marriages in Turkey increases at a rate of 500 thousand cases per year. The newly married young people in Turkey often tend to buy or rent a house, and consequently, house sales rise, whether directly to spouses or to business people who want to buy real estate in Turkey to rent them.
• Various governmental and private departments directly related to the real estate sector in Turkey have directed online sales in Corona's time. This method helped move the sector, both for Turkish citizens during the days of home quarantine, or for foreigners who were not allowed by local aviation conditions to come to Turkey.

Features of circumstantial recession in real estate sales in Turkey during the time of Corona

Yes, real estate in Turkey has shown apparent resistance to the shocks caused by the Corona pandemic at all levels that directly correlate with the sector, such as "aviation, transportation, tourism, import, and export, etc.".

Among the features of the recession, we find the significant decrease in the number of foreign investors in the real estate sector in Turkey due to the freezing of civil aviation flights for more than two and a half months, and also the decline in real estate investment opportunities in the tourism sector due to the temporary suspension of the tourism season in Turkey, and in this regard hotels, resorts and real estate are known. 

Features of the resilience of Turkish real estate towards Corona

The strong resistance was shown by real estate in Turkey in the face of the Corona epidemic. Its various effects on walks of life did not come from anywhere, as it was the result of tight planning by the Turkish government and controlled management of the economic health crisis through:

• The total incentives provided by the Turkish government to foreign investors in the field of real estate, such as real estate residences in Turkey, obtaining Turkish citizenship in exchange for a real estate investment of only 250 thousand US dollars.
• Opening the door to the completion of various real estate procedures online, such as paying the tax, extracting the title deed, and others, opened the door to foreigners wishing to own real estate in Turkey from a distance suspension of flights.
• Maintaining real estate purchase prices in Turkey in the Turkish lira has been a magnet for foreigners who deal in dollars. For example, those who used to pay 100 thousand dollars to buy a property worth 600 thousand Turkish liras can now buy it for only 90 thousand US dollars due to Corona's impact on the real estate market.
• Supporting real estate ownership procedures with steps that increase investor client confidence, such as extracting a real estate appraisal document, providing real estate assistance and mortgages, and others.
• The intensification of the advertising campaigns encouraging real estate investment in Turkey by both the different construction companies and the real estate companies that play mediator between the client and the construction companies of various real estate projects.
• Providing long-term real estate loans to Turkish and foreign investors, which greatly encouraged the purchase of a real estate in Turkey. 
• Granting real estate loans at fixed interest rates with flexible payment plans that suit clients' circumstances.
• The possibility of paying real estate taxes online as part of the online real estate sale process in the time of Corona.
• The possibility of conducting all real estate purchase transactions in Turkey through a third-party legal agency.

Yes, Turkey's real estate sector has proven throughout the record-breaking period of the epidemic that it successfully surpassed the hurricane and even achieved the victory.