Real estate expectations worsened, Istanbul continues its decline

According to PwC’s global real estate report, Istanbul, which ranked first in investment preference among international investors in 2012-2013, has slipped back to 29th in investor preference.

According to the report “Emerging Trends in Real Estate Europe 2023” prepared in collaboration with PwC and the Urban Land Institute (ULI), a fall in real estate values ​​and financing is coming in Europe, where profitability expectations are declining and expectations of recession are increasing.

According to the report, the issues of greatest concern for the real estate sector in 2023 will be construction costs, the availability of resources, debt and access to capital.

LONDON, PARIS AND MADRID IN THE TOP THREE

In the ranking of the preferred European cities for real estate investment, London ranked first, followed by Paris, Berlin and Madrid. Istanbul was ranked 29th in the list of 30 cities.

PwC Turkey Real Estate Leader Ersun Bayraktaroğlu said: “High costs, difficulty in accessing funds and limited new supply due to these reasons highlight cities where buyers and sellers can go head to head much more easily in the market. current market. Istanbul is at the bottom of the list this year, as it has been for a while, for many reasons, not just because the market is not deep and, perhaps more importantly, because non-residential real estate areas are not receiving the necessary value. and importance”.

‘THE TRUST ISSUE WAS EFFECTIVE’

Stating that the problems in the European real estate markets, such as rising inflation, rising construction costs and access to finance, are also valid for the Turkish real estate market, Bayraktaroğlu also stated that the lack of confidence created by foreign investors due to sudden legislative changes Changes in Turkey are the biggest factor in Istanbul’s fall from the list.

Bayraktaroğlu said: “Istanbul was at the top of the list in 2012-2013… We have been at the bottom of the list for a while due to sudden legislative changes, the limitation of foreign currency lending, the very severe depreciation of the TL, and differences in tax regulations”. The most important is legislation. For example, all foreign investors who invested in shopping malls in Turkey were shocked when foreign currency rent was abolished overnight. It is one of the most important breaking points”.

‘WE DO NOT EXPECT ENTRY FROM INTERNATIONAL INVESTORS’

Bayraktaroğlu, on the question of whether they foresee new foreign entries into the sector in the coming period, said: “We do not expect a new influx of international investors. It may come from the Gulf side, it comes in general, real estate will get its share from there, but international institutional investors, namely European, American and Far Eastern investors, are not in the Turkish market at the moment,” he said. (REUTERS)