Why Do Real Estate Prices Rise?
Real estate is the general term for immovable properties such as land, fields, apartments, villas, hotels, offices, factories, etc. Turkey ranks among the countries where real estate is expensive relative to income. In other words, real estate is expensive in Turkey. Everyone in Turkey desires to get rid of rent. The Turkish people, who do not like paying rent much, invest in real estate, especially housing, by desiring to become homeowners as soon as possible.
Factors Causing Real Estate Prices to Rise
Real estate prices rise in inverse proportion to interest rates and the dollar. Everyone who follows economic balances can predict that real estate prices will increase when interest rates and foreign currency rise. In addition, the fact that real estate is seen as a high-yield investment tool causes the investment in real estate to increase, which in turn causes prices to rise. In areas with high urbanization, real estate prices tend to be higher. For this reason, those who want to make a long-term investment can invest in cheaper regions. Real estate prices are higher in crowded cities. Therefore, it is more expensive to buy real estate from big cities like Istanbul, Ankara, Izmir, and Antalya. The location of the real estate also affects prices. Being on the street, the district, the neighborhood, etc., causes prices to rise. The increase in demand for real estate is also effective in the rise of prices.
