A series of powerful tremors occurred in Turkey on February 6. In the province of Kahramanmarash, the magnitude of the earthquake was 7.7. Tremors and hundreds of aftershocks were felt in 10 provinces of the country, as well as in Syria. Subsequently, earthquakes recurred.
The incident changed life in Turkey. More than 26,000 buildings were partially or completely destroyed. The official death toll approached 46,000. The housing market has also undergone changes: arrests of developers, tightening building codes, internal migration.
Quality of construction in Turkey – the earthquake became a revision with too high a price
An expert on investment property in Turkey, Yulia Donskaya, said that the earthquakes, of course, showed the world the imperfection of the Turkish construction industry. In provinces where developers are not properly controlled and violations can be easily covered up, the damage has been the greatest.
This is not the first devastating earthquake in Turkey. In 1999, there was already a precedent in Istanbul, after which the urban planning policy was completely revised. Now all new housing here is undergoing an examination for resistance to earthquakes. The old housing stock is also being checked and life-threatening buildings are being demolished,” Donskaya said.
General Director of the design and construction company “Stadiya-P” Viktor Lavrentiev said that the situation in Turkey has not yet been fully completed, but has already managed to cause irreparable damage to the country’s construction industry.
“Earthquakes caused significant damage and destruction: more than 26,000 buildings were destroyed, and many others were seriously damaged,” he said.
In this regard, adds investment property expert Victoria Glushchenko, local developers will pursue a model that takes into account all possible risks associated with earthquakes. They will use more modern technologies and materials to ensure the safety of the residents. In addition, developers will become more responsible for quality control of construction.
“It is now clear that developers will have to adopt stricter building standards and regulations, as well as invest in better materials and technologies to ensure the safety and longevity of their buildings. This may require additional investments, which will potentially lead to an increase in construction costs and ultimately affect the cost of apartments in new buildings, Lavrentyev agrees.
Developers, he said, are likely to have to implement more transparent and accountable practices in their work. Regular audits and certifications by independent third parties will become a daily routine. Now in Turkey, the demand for property after the earthquakes will be focused not only on marketing views from the windows, but also on the real quality of construction.
- Property in Turkey
After earthquakes, the demand of Russians for housing in Turkey fell by 60%
Property value and demand in Turkey after the earthquake
Experts are confident that in the short term, the Turkish market may see a decrease in demand for property in the affected areas, and some developers may face problems in ensuring the quality of construction in earthquake-prone areas. However, in the future, there may be opportunities for developers to invest in refurbishment and quality improvement in these areas.
– It is impossible to say exactly how long the stagnation in the Turkish market will last. It depends on many factors, including the effectiveness of restoration work, changes in legislation and the general economic situation in the country and the world. However, if the authorities quickly and effectively cope with the consequences of earthquakes, then we can expect a gradual recovery in the real estate market, – adds Victoria Glushchenko.
But Donskaya, on the contrary, believes that it is too premature to talk about market stagnation. Especially considering the fact that the percentage of foreign investment in the Turkish market is too small to influence it.
– In Istanbul, for example, no more than 10% of foreign investment, the rest are local buyers. According to my observations, the market not only does not fall, but on the contrary, it even grew a little during this time. Now the situation will develop in favor of large developers building quality housing. This segment continues to grow, and the old secondary, on the contrary, is getting cheaper. There is also an increased demand for houses and villas, – said the specialist.
Real estate prices in Turkey will fall
In the short term, property prices can be expected to fall in the affected areas as demand declines due to security concerns, said Viktor Lavrentiev. However, further, according to him, the market may recover, and prices may rise as the affected areas are rebuilt.
“In addition, government stimulus and low interest rates can help boost demand and offset temporary price drops. How long the stagnation of the Turkish property market will last will depend on the measures taken by the government and developers to restore the affected areas, he said.
Exactly the same point of view was voiced by Victoria Glushchenko. She did not rule out that prices for new buildings in Turkey will decrease in the near future due to falling demand for real estate, but this may be a temporary phenomenon, and the cost will soon begin to rise again. In any case, according to her, buyers will be able to get better deals.
Is it worth investing in Turkish housing
Olga Blagoveshchenskaya, the founder of Olga Blagoveshchenskaya’s MFCU law firm for processing real estate transactions and land legal relations, recommends not rushing to make transactions in pursuit of a low price tag.
The expert noted that the Turkish tragedy has greatly changed the views of local residents on the quality of housing. Disturbing news about the ongoing tremors continues to come in, so internal migration in the country is only increasing. More seismically calm areas are chosen for living. The Antalya region has become the most popular destination for both locals and tourists. This increased the demand for real estate there and caused prices to rise.
Now the active development of the region is predicted. This means that more and more new buildings will appear there. Most likely, the tragedy that happened will force the government to revise the standards and norms of construction. Which will also lead to higher prices, but now new housing.
This means that an investor who has bought an apartment in the secondary fund is unlikely to sell it due to low demand. But for the purchase of new housing, already of high quality, you will have to pay much more money.
– In general, now I do not recommend investing in real estate abroad. Prices are all over the place. There is a possibility of encountering difficulties in resale. So the chance of earning is small. The political situation in the world remains tense, which creates certain risks for potential investors, she specified.
Recall that we also previously reported that 60% of Russian real estate transactions abroad are made to obtain citizenship.
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