If you look into the Turkish country aspects, you will find that it holds many hidden details that might enrich you knowledge about different cultures that maybe one day it will be beneficial.
Perhaps you question the reason behind attracting foreign investors from all over the world in Turkey. According to the reports, it found that the fall of the Turkish lira has an enormous effect, so what are the details of this news?
What are the details of the Turkish lira fall?
This is an old news, as news agencies have announced it at the end of last year 2020. However, it kept falling since then and until now. Given that, we will be discussing this file.
It has been found that the fall of Turkish lira had a huge negative effect in all of the Turkish state and all sectors and fields particularly the real estate sector. Moreover, this effect is one of key elements that encouraged foreign investors to win the opportunity and invest their money.
Although it is not the first time that the Turkish lira falls, yet this time is exceptional as it was a free fell for the Turkish lira than ever before.
What are the key factors behind the Turkish lira fall?
There are many reasons that contributed to the Turkish lira reaching this drop in its value against other global currencies, such as the US dollar and the Euro. Undoubtedly, one of the important reasons for this time is the Corona virus, that has been badly affected the whole world.
Certainly, Turkey has been affected, yet it did not collapse like many other countries. Not to mention that Turkey counts largely on tourism in general, and closing borders have shrieked the number of travelers and visitors, which in result caused a slight shake. Besides, foreign investments especially real estate is an important source of income in Turkey as well that Pandemic have hit which caused some losses.
Worth to know, that there is a main reason that drove the lira to a great decline, it is the low interest received by Turkey that in result increased the prices of materials in Turkey that in return caused many problems for Turkish people. Nevertheless, the global rise in gold price has negatively affected the status of the Turkish lira because of the price big jump of 21% than before. Such increase is highly risky for many countries in the world, and not Turkey only.
How did the Turkish state managed to avoid the impact of the Turkish lira's fall?
It is certain that the Turkish state did not take the role of a spectator, but took a step in order to address the problems that could result from this decline. It was not an option to increase the interest rate after the previous increase made nearly a year ago. In several ways, it tried to reduce the price hike that had spread to it through the supply committees and constant inspection campaigns to control and limit the problem. This is one of the most important measures that made the Turkish people content, and did not exchange their money for foreign currencies.
Does the fall of Turkish lira have an impact on real estate in Turkey?
It is irrational that the fall of the Turkish lira affects all the sectors in Turkey and except for the real estate. Yet, this has actually happened, it has been found that the real estate sector in Turkey was not considerably affected, and it was for the benefit of foreign investors in particular as they found it a suitable opportunity to acquire properties, especially after a number of studies that indicated a significant rise in Turkish real estate prices.
Given that, investors were encouraged to purchase at a normal price, and sell them with the new predicted price. Not to mention that purchasing a property with a high quality with a low price and reduced taxes is an attractive factor for the investors as well. Another factor to say in regard of the Turkish real estate in general, is that it has not been affected by the price of the Turkish lira, whether it increases or decreases, they were reassured and confident in every step they take.
The Turkish currency is not the only one that have been exposed to some pitfalls in its history, many others have fallen into this trap as well, and as others have risen, they will also rise, and this is what has become clear to us through many recent studies that have been presented.
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