FACTORS INFLUENCING PRICES OF RESIDENTIAL REAL ESTATE IN TURKEY

Abstract

In many nations, the real estate sector is a major determinant of economic growth. It is critical to conduct market research and gain a thorough understanding of the market before making any decisions. In real estate investing, market analysis is an underappreciated asset. In actuality, the most significant aspect of analysing a real estate investment is market analysis. Every calculation and choice that follows is based on the market analysis. Market analysis should also take into account broader economic developments in region as well as at the national level. Despite the fact that all real estate is local, bigger macroeconomic factors have an impact on all local markets. As a result, market analysts must examine interest rates, present and proposed inflation fluctuations, GDP growth, population expansion, and interest rates. All of these elements have an impact on an economical base that surrounds the subject property's progress or decrease. Changes in capital flows have a direct impact on the supply and demand dynamics for a property. Interest rates can affect the cost of borrowing and mortgage rates—changes in capital flows can also have a direct impact on the Demand and supply variables for a property. There are also links between inflation and any limited-supply good. Inflation has a significant impact on a wide range of industries. The utility market the banking, and energy are the most affected. Unlike these businesses, however, real estate investors often bear the brunt of the damage. Global real estate offers the necessary investment characteristics: a consistent, long-term income, capital appreciation potential, and major diversification benefits. This has been especially true in most Asian countries, which have had consistent structural, long-term, and durable economic growth in recent years. In fact, because Gross Domestic Product Growth rate is the primary driver of real estate values and rentals, real estate investments offer a direct method to benefit from these economies' significant growth. Growth in the population It's also important to comprehend the fundamental causes of population growth. If births are the primary cause of population growth, this is not as beneficial in the near term as if the growth is due to migration. Because the majority of these migrants require immediate housing, net interstate migration plus net overseas migration is an essential component of population expansion. As a result of the unprecedented rates of foreign migration and net interstate migration in both Sydney and Melbourne, demand has surged and driven up the median price in those two cities.