العربية
Turkish investment sectors thrive due to the robust economy, local GDP growth, and factors making Turkey a prominent global investment destination.
Real estate investment tops the list due to its capital security, along with investments in bank deposits, given the advancements in Turkey’s banking system.
Real Estate Investment in Turkey:
- Real estate investment in Turkey revolves around owning Turkish properties to receive profitable returns, whether periodic or intermittent.
- The diverse forms of real estate investment in Turkey, a vital and extensive sector, result from significant market developments influencing international real estate markets.
- This includes innovative investment methods such as conservative investment styles, real estate funds, and more.
Bank Deposits in Turkey:
- Bank deposits in Turkey classify as financial investments primarily relying on banks in wealth management and lending sectors.
- Many investors turn to the financial sector to invest their money and secure guaranteed profits within the deposited banks.
- Banking institutions compete by offering distinctive “deposit account” programs to attract investors.
- with the declared interest rate in the country primarily determining investment directions.
Differences between Real Estate Investment and Bank Deposits in Turkey:
- Both real estate and bank deposit investments in Turkey are separate yet interrelated investment fields, with each influencing the other.
- For instance, an increase in interest rates in Turkish banks attracts investment in bank deposits.
- leading to a decrease in demand for the real estate market and consequent property price reduction, and vice versa, along with other varied effects.
- The table below provides a detailed comparison between profits from real estate investment and bank deposits, highlighting the differences:
Comparison | Real Estate Investment | Bank Deposits | Risks
Risks:
- Risks relate to the property itself, such as fraud or deception in property purchase, market risks, and conditions like decreased demand and returns.
- Bank insolvency and restrictions on investor withdrawals, coupled with economic crises linked to currency devaluation and inflation.
Expected Profit:
- Influenced by supply and demand factors.
- Guaranteed with fixed rates throughout the investment certificate period.
- Inflation Hedging:
- Prone to inflation effects.
- More cautious about inflation factors and quicker to compensate the difference.
Crisis Response:
- Real estate is considered the safest during crises.
- Limited precautions during crises as most banks do not rely on fixed assets in their main balance.
Investment Ease and Obstacles:
- May face more difficulties and obstacles.
- Easier to start and proceed with investment procedures.
Why Real Estate Investment Holds an Advantage over Bank Deposits?
- Observing the movement of the Turkish real estate market since the beginning of the new millennium.
- the significant rise in property prices and the outstanding performance of real estate market indicators globally highlights.
- Turkey’s real estate as a preferred investment over banking. Experts recommend real estate investment in Turkey over banking for several reasons.
- including the local market’s dependency on individual property ownership behavior and prevailing social culture encouraging population growth.
- resulting in increased demand for Turkish properties.
- The Turkish government’s inclination to reduce interest rates in the long run redirects investors’ trends from bank deposits to real estate markets.
- raising the investment value of properties in Turkey due to increased demand. The decline in the value of.
- the Turkish lira directly impacts bank deposit systems unable to compensate for losses compared to real estate investment.
- The compensation margin provided by real estate investment to its pioneers is rapid and substantial concerning inflation factors compared to bank deposits.
- Some describe the Turkish real estate market as crisis-resistant, overcoming all economic challenges despite fluctuations in currency value.
- inflation, and events like the COVID-19 pandemic and lockdowns. The law of commerce states that an increase in demand for a product with limited supply leads to price hikes and vice versa, reinforcing the resilience of the Turkish real estate market.
