Will real estate prices skyrocket after the election?

To answer this question, you need to understand why real estate prices in Turkiye are rising.

It's no secret that the inflation rate in Turkiye is very high and it is the mechanism that primarily affects the value of real estate.

After all, as you know, demand creates supply, and if supply is lower than demand, then prices go up.

Whoever buys real estate in Turkiye the most is, of course, Turkish citizens who are already tired of the long depreciation of the lira and they need to somehow save their money.

It seems to be simple mathematics, but very often people try to tie price increases to some other factors that seem very significant to them, such as the influence of foreign capital.

But now we are not talking about this, but about another phenomenon in the economy called “deferred demand”.

The decrease in activity in the real estate market since the beginning of this year was due to two main reasons:

▪ Earthquake

▪ Presidential elections

All this has introduced some uncertainty into the real estate market, which always reacts first to shocks.

But nothing lasts forever, when the elections are over and people return to a normal life in which planning will take place, they will turn their attention back to real estate.

This will be the case until Turkiye defeats inflation, and this requires serious reforms, which is not a matter of one day for any president.

Therefore, in the near future, we are likely to observe the activation of the market and another increase in real estate prices.