Turkey's real estate market after the pandemic

Turkey, even during the period of completely closed borders at the peak of the coronavirus epidemic, was one of the few countries that almost immediately announced that it was ready to host tourists from Russia and the CIS, so many expected a reciprocal step forward. And when it happened in August, Turkey's real estate market began to rapidly gain momentum, recovering from a difficult spring and two summer months.

Almost all real estate agencies operating in Turkey are now loaded with work, just like the pre-crisis period, and some of them are even experiencing an unprecedented surge from foreign buyers, some of whom, if previously hesitated whether to buy real estate in this country or not, began to promptly accept positive purchase decision. Favorable climate, picturesque sea, modern construction standards, local knowledge of the Russian language, many educational institutions, offices of international companies - the list goes on and on. Of course, in addition to Turkey, it is possible to find several more countries with similar characteristics, but only now you can fly here and personally inspect all the objects of interest, choosing the ideal option among them.

Peak of the pandemic in Turkey

With the advent of the coronavirus pandemic, Turkey, like most countries in the world, introduced rather strict restrictions in the social sphere: ubiquitous markings of social distancing appeared in public places, mandatory wearing of masks in public places and shops was introduced, sanitizers appeared everywhere. At the entrance to government agencies, the temperature is controlled, and more than a certain number of people are not allowed into local banks, the number of seats in public transport and street benches has also been reduced. At the initial stage, even communication between the provinces was almost completely closed, and for a long time mass events and even visits to mosques were prohibited, and serious fines were imposed for non-compliance with measures. In parallel, the number of tests carried out increased, medicine was developing protocols for treating the virus. All together this has borne fruit and now we can say that the situation is completely controlled by the authorities.

The tourism industry also responded promptly. Even before the opening of the hotels, the Turkish Ministry of Tourism developed measures to combat the virus: all the necessary norms of social distance were introduced in hotels, the staff now necessarily wear masks and gloves, the temperature of both employees and visiting tourists is monitored, special isolated rooms for potentially sick people have appeared, and the "buffet" loved by many - now only a hotel employee, not a vacationer, can put food on plates. Treatment of sick tourists and their hospital stay is paid by insurance or, if the length of stay is increased, by the hotel itself. Control measures for those arriving at the border now consist of measuring the temperature and sending them to the hospital in case of symptoms of the disease.

Turkey's pandemic records

When Turkey's air traffic with Russia and other countries was closed, online real estate shows and deals were actively carried out in the country, and this despite the fact that there were no mass sales here. There were 38% fewer foreign buyers in the first months of summer than a year earlier. Experts explain this growth in sales succinctly: during the pandemic, national banks offered preferential mortgage rates, thanks to which local residents paid attention to their own resorts. As a result, 624,000 apartments and houses were sold in Turkey in the six months of 2020.

According to analysts from the international company Knight Frank, topped the rating of The Global House Price Index for the first quarter of 2020, which tracks price changes in more than 50 countries. Real estate prices in this country increased by 15% over the year, the second and third places were taken by New Zealand and Lithuania with an increase in value by 14.5% and 13.8%, respectively. But it's worth noting that in real terms, adjusted for inflation, prices in Turkey rose only 6%.

After the peak of the pandemic

At the moment Istanbul, Ankara, Bodrum, Antalya and Alanya are open to foreign flights. There is no need to do a coronavirus test to travel to Turkey. No information about the epidemiological environment will also be asked anywhere - neither at the border, nor at the hotel. During the flight, you will need to fill out a questionnaire for the Turkish Ministry of Health, indicating your passport details, phone number, address of residence in Turkey and seat number in the aircraft cabin. On the way back, before checking in for the flight, you will have to fill out a questionnaire on the State Services, another one - already on paper on board the aircraft. And within 72 hours after returning to Russia, pass the PCR test for covid-19 and upload the result to the State Service portal.

In Turkey, now masks must be worn in all places of mass gathering of people. As for excursions and cruises in this country, they are carried out as usual. However, for cruise boats, yachts and other vessels, there is a limit on loading - up to 50%. The rest of the excursions are carried out as usual. Guides and drivers undergo a medical examination before each trip, they must wear masks. Tour and shuttle buses are equipped with disinfectants and are sanitized daily. You can disinfect your hands everywhere: on the street, in a store, at the entrance to the beach, etc. At the entrance to the restaurant, every time they measure the temperature for everyone, they are allowed only in masks (which are freely available for free at the entrance). Every day, streets, playgrounds and other public spaces are disinfected.

Changing geographic preferences of home buyers

According to some local experts, some Russian-speaking tourists have changed their priorities - more and more often, instead of Kemer, they choose Alanya as a place for recreation. It is interesting that over the years, buyers of real estate from Russia and neighboring countries have chosen housing in Alanya. Now, thanks to the increased flow of tourists in this part of Turkey, the pace of sales has received an additional boost, because, to a large extent, the decision to purchase real estate is often made precisely after a vacation in the area of interest - this certainly plays into the hands of local real estate agencies.

Current features of the real estate market

Some Turkish developers, due to the pandemic, have postponed the start of construction of new residential complexes until autumn and early winter. At the same time, no one talks about the closure of any projects or mass sales, everything conceived is being implemented without a global deviation from plans. The market “unfreezes” and more offers appear on the secondary market: since air traffic is open and there are many buyers, good offers “leave” very quickly, within a few days. Many expect that this fall, with the launch of new projects from large developers, the wave of buyers will increase even more - projects at the excavation stage are always interesting in terms of investment.

The period of the pandemic has become a catalyst for the development of the real estate market: this September, the Ministry of Environment and Urbanization of the country announced that as soon as next year all documents confirming ownership in Turkey will be registered in the land cadastre and cadastral information system, in obtaining paper documents from archives will not be necessary. Thus, in the near future this country will be able to completely switch to electronic document circulation associated with the purchase and sale of real estate.

Thank you for your help in preparing the material:

Daria Ushakova, expert at Zera Homes

Ksenia Baldzhi, Director of the Sales Department of Liga Real Estate

Ruslana Ragimova, head of BUTA Home