Will real estate investment be the best solution in light of global inflation?

Real estate investment has become the ideal solution in light of the global inflation occurring in most international countries!

Real estate is a safe haven in times of inflation

This has been stated by international studies, most notably the American CBRE, a platform concerned with real estate affairs since 1920.

However, real estate investors should very carefully choose the countries for real estate investments.  Properties Gate Real Estate Company shares with you today the essential general points about inflation. Then we will talk about real estate investment in Turkey and its impact in the midst of this global inflation. Moreover, its positive impact – in return – on saving investors’ money.

What is the meaning of global inflation?

Inflation, in short, means an increase in the general level of all prices, such as food products, building materials, electricity, and even real estate!

Inflation is generally measured as average prices based on a country’s economy. It is calculated based on the average difference between consumer prices and product cost prices.

What are the causes of inflation in the world?

Its causes may be due to multiple economic factors, such as the decline in exports, in the purchasing power of the local currency, or the occurrence of global crises. This is what took place in the world during the past two years, and led to this terrible inflation, mainly due to “Covid-19 pandemic”.

In the long run, markets, workforces, and even supply chains are affected.

In addition, the unstable global situation between Russia and Ukraine, and the resulting economic sanctions and repercussions. Not to mention, that both countries are a source of many strategically important commodities such as wheat!

Is real estate investment the best solution in light of global inflation?

Most capital owners seek to avoid money loss through currencies’ drop of purchasing value, or bank deposits in frail countries.

Consequently, they are always looking for all kinds of tangible assets, to preserve the value of their capital on the one hand, and to invest it on the other.

Various studies and analyzes conducted by many official platforms and research centers in America, and other international countries, have indicated that real estate ranks first in terms of reliable assets that investors buy to retain their capital. But why?

• Real estate preserves the value of the real estate asset and increases with the rise in inflation.
• Real estate is tangible for higher returns due to its direct link to inflation.
• Property’s rent is also rising compared to the rise in inflation.
• Compared to other assets, real estate ranked first, leaving gold a step behind!

Real estate investment in Turkey in light of the high inflation

Turkey was certainly affected by global inflation like any other country in the world. Moreover, it had a share of damage due to the recent global health pandemic.

However, the Turkish state was able to largely overcome the consequences of this pandemic. Simultaneously, maintaining the rotation of its growing economy, and the massive export movement ongoing for decades.

At the end of 2020, Turkey was ranked 17^th among the twenty most powerful economies in the world. However, today, as we enter 2022, it is ranked the 20^th.

Nevertheless, at present Turkey, compared to other countries, has proven its economy’s strength in light of the exit of some countries from this list completely.

According to Turkish Statistical Authority, inflation in Turkey has reached the threshold of 61%.  Indeed, this is the case for most international countries, and some of them have even crossed the 72% inflation threshold, like United States of America. As an investor, how can I preserve my money in light of this inflation?

We, at Properties Gate, advise all investors with capital to shift to real estate investment now, specifically in Turkey.

Mainly because real estate has also proven to be successful, safe and profitable investment, in light of all the aforementioned global changes. How is that?

• Real estate in Turkey has increased in value for over 40% since 2021 until now.
• In addition, the rental value of properties increased by more than 80% in light of inflation.
• The value of properties under construction has more than doubled, compared to the purchase price over two years ago, with the expected delivery dates.

 

Does every property maintain its capital or purchased value?

The most important things to pay attention to when buying a property, in terms of value sustainability and its periodic increase are the following:

First – property’s location, with a future perception that anticipates growth of the region for over 5 years at least.

Second – the annual investment return for the property should not be less than 7%.

Third – an increase in the value of the real estate asset between 6 to 8% at least.

Fourth – Real estate’s official documents must be 100% legal.

Fifth – Selecting and buying real estate in investment areas. That is for ease of reselling them, and reaping appropriate profits when reselling or leasing.

Sixth: Choosing construction companies with a good reputation and decent history.

Real estate investment in Turkey is really a guarantee for your capital, as well as for its development. Simultaneously, for the purpose of preserving it from exchange rate fluctuations. This is absolutely undoubted, especially since Turkey has countless elements, and it represents an attractive environment for investment. In addition to the incentives from The Turkish government, namely, the enactment of the Turkish citizenship law in exchange for buying real estate. It is well-known now that the minimum total value of real estate investment has recently been increased from 250,000 $ to 400,000$, to be presented in the Turkish citizenship file.

What are you still waiting for?

We advise you to choose the best real estate advisor once you decide to buy a property in Turkey. That is to ensure that the value of the capital is preserved, and to conduct the purchase process safely and completely legally.

We have a history of success in the Turkish real estate market for many years. Clients we were pleased to serve, trust and compliment us. Would you like that too?

Properties Gate is ready to serve you by providing investment offers that comply with the conditions of obtaining Turkish citizenship in exchange for buying a property. In addition, we assist in providing a strong Turkish passport for you and your family.

Do not hesitate to contact us directly. We can offer you many suitable options complying with your tastes, preferences and budgets.

Edit: Properties-Gate^©

Source: Turkish Statistical Authority