What does 2022 hold in store for the Turkish real estate industry? This is a common question among people who are interested in ready to move projects and people who are looking for luxury apartments in Turkey. Nobody in the commercial real estate industry has a crystal ball, like a fortune teller. However, the industry experts have discovered some trends through the analysis of data that was collected over the past few months. Keep on reading this article to learn more about predictions for commercial real estate in 2022. According to https://elmaslarrealestate.com, this is something that all people who wish to buy Turkish citizenship through real estate investments should keep in mind.
- The demographic wave of young adults will contribute a lot towards the boost in prices:
Throughout the past decade, a majority of Turkish population consisted of baby boomers who settled down and started families’ long time back. However, studies conducted in 2021 have shown that 23year old population is the largest in the country at the moment. This is followed by 22year olds and 24year olds, respectively. Therefore, more and more young adults will tend to purchase their own homes and start new families in 2022. Economic experts predict that these young adults will contribute towards two third of the household formations in next 5 years. 2022 will be the first year of their generation.
- Mortgage rates will increase:
Many real estate analysts predict that the mortgage rates would increase significantly throughout 2022. It will provide an excellent support for the improving economy. 2021 was not a good year for the real estate industry. The year started with US economy shrink in the first quarter. It was followed by the slow growth in Europe and Japan. A lot of downward pressure was applied on mortgage rates and pressure as a result of that. However, things will be different in 2022. The improvement of domestic economy will increase the mortgage rates throughout 2022.
- Young adults will tend to build houses where it is tough to build:
The value of pre-occupied homes in Turkey would probably remain flat. The depression of Turkish economy has contributed a lot towards the above mentioned fact. As a result of that, builders are not interested in constructing single family homes. However, the young adults prefer to live in places where home construction is difficult. It has helped them to reduce the money that is meant to be spent on real estate.
- The home affordability will decline.
The increase of home prices will decelerate in 2022. According to the statistical information, home prices were increased by up to 2020, but slowed down with COVID pandemic. The expected increase of home prices in 2022 is by about 3%. However, the affordability of homes will decline in 2022. It is because many homeowners tend to sell their homes in this year. Other factors such as rising mortgage rates and millennial mismatch can also make the homes unaffordable for most of the people who fall into middle class.
Keep all these facts in mind and go for the best real estate investments opportunities in Turkey.